Fees to a Claim Managment Co

[Deleted User]

amba wrote: »

I have re-read their contract..."We don't charge up-front fees and work on a "results only" basis. Our fees are 25% of the compensation plus VAT (payable after you receive the funds) and are capped at £2,500 plus VAT."

As already explained (several times now), if you "win" redress and it is applied to monies written off as part of an IVA or DMP then the CMC regards this as a "result". Receipt of the funds will be when the money is paid off your debt, not necessarily when you personally have the money.
This is one of the better clauses I've seen in these contracts. Some CMCs have been reported as demanding the money as soon as the Bank declares that a mis-sale took place (even though it might be 28 days or more before the Bank actually stumps up the money).

As Dunston said earlier:

The claims company will charge their percentage against the redress paid by the firm even if the redress doesnt come to you.

I see you've completely ignored the suggestion to complain to your IP? Is that because he didn't actually suggest this in writing?

amba

Suggestion of claiming back PPI was given over the phone by the lady I spoke to when I contacted the IP,s Office several weeks ago and the suggestion of getting somebody who specialises in this type of work.I therefore did a search for a CCM who did this type of work,which now seems a poor move.

Given the position I am now in what is the best advise.?

[Deleted User]

amba wrote: »

Suggestion of claiming back PPI was given over the phone by the lady I spoke to

Oh dear, so not official advice at all.

I'd contact the Claims Company and ask them to clarify the situation. Exactly how many more individual complaints are likely?

amba

I will contact the CMC in the morning as advised, and get confirmation regarding the exact nature of what will happen if any potential award is used by the Bank cc co direct.

7 loans and 6 cc claims were submitted all having PPI attached

amba

On advise I have contacted the CMC this morning by phone and followed up by email.

They have confirmed that I will only be require to settle their invoice once I have received funds into my nominated bank account and they have also confirmed that if I don,t personally receive any settlement I will not be liable for fees.Any payment that is held or finally used by the original bank or CC co will not be chargeable to me.

Hopefully that is good news and seems they are being fair and reasonable with their charges

[Deleted User]

amba wrote: »

Hopefully that is good news and seems they are being fair and reasonable with their charges

I don't know about 25% (plus VAT) being "fair and reasonable":eek:, but I agree you seem to have chosen a firm who at least won't be presenting you with a bill based on money you haven't personally received.
Thanks for updating us.

magpiecottage

amba wrote: »

I have re read thier contract terms and it clearly states.

We don't charge up-front fees and work on a "results only" basis. Our fees are 25% of the compensation plus VAT (payable after you receive the funds)

That is ambiguous. When that happens, courts tend to interpret the ambiguity against whoever drafted the contract.

So you would have grounds for complaint against the CMC if they attempted to enforce it.

However I would still go for the IP as well.

[Deleted User]

magpiecottage wrote: »

However I would still go for the IP as well.

Since that seems to have been a telephone operator giving that advice, a complaint about her doesn't look to have any potential for success.

amba

Accept that 25% may not sound fair reasonable in the "cold light of day" but presented with an option for recovering PPI, and as I didn,t have any further advise to base my decision upon at that time I was prepared to accept it,and will adide by it under the agreement that has now been offered to me.

If I had found this forum earlier I would have dealt with it differently but hind sight is a wonderfull thing and in truth I will be quite satisfied with any refund I get back although at present I have had 2 offers totalling over 7k.

Thanks for your help,guys,much appreciated.

[Deleted User]

amba wrote: »

If I had found this forum earlier I would have dealt with it differently but hind sight is a wonderfull thing and in truth I will be quite satisfied with any refund I get back although at present I have had 2 offers totalling over 7k.

A very sensible approach to your position. Well done on your success so far!