Reclaim uk charging me for a service I never got.

jpok1000

Hello all! What it is about four years ago now a company named Reclaim uk contacted me saying that they could get me back mis sold PPI on a loan that I had taken out with a loan company called Welcome finance. Now at the time this sounded good so I let them go through with the process of letting them deal with the case of claiming back any PPI. However to cut a long story short Reclaim uk claimed back around £1800 PPI but I never see a penny of it as they give every penny of it back to welcome finance saying that because I owed welcome finance money to repay the loan I had taken out with them a few years previously they felt it was the best option to pay the PPI back to welcome finance. However I did not owe welcome finance any money because I had been on a debt relief order a government run debt scheme whereas if you on it for more than a year all your debts get written off. But Reclaim uk are still trying to charge me a total of £580 for their services, but what's bugging me is the fact that when they contacted me in the first place they stated that any mis sold PPI that they claim back would be mine so I don't see why I should pay for a service that I never received. So the question is can they charge me when I never even received back the PPI that they claimed would be mine?

-taff

Actually, yes, they can, which is one of the reasons I will never ever recommend anyone use a claims company.
A debt relief order doesnot meanthe debt was written off entirely, it means that part of the debt was written off, but that WF were happy to be part re-imbursed by the scheme. Then, when you claim,ed your PPI, they woke up again and asked for it back to cover the portion of the debt that written off by them.
http://www.justice.gov.uk/claims-regulation/information-for-consumers
And unfortunaterly, reclaimuk seem to be an authorised business....