Indemnity Claim/ DD Guarantee

Pearl1

Hi, I'll keep it sort

Paid for some advertising in 2013, one payment up front the rest in direct debits. The company have now gone bust and have failed to carry out the advertising. I then get a call from Legal Reclaims Ltd who claimed they could get all the money back via the DD Guarantee minus their 30% plus vat. After meeting with them today they dealt the bank over the phone (with my permission) explained the issue and I am now waiting for the funds to be paid in. I have a couple of doubts...
1. Is this common for a company to do this, I've search online, companies house etc and they've only been around 1 month.
2. I don't want to pay their 30% and then the bank decided that for some reason the money needs paying back.
3. Could the up front payments be claimed also under the Visa Debit Guarantee?
I smell a rat, any advice would be great.

Pearl1

Forgot to say I signed an agreement that confirms I will pay them the 30% once the bank has returned the DD's. Should a 7 day cooling off be included in that agreement??

dunstonh

I then get a call from Legal Reclaims Ltd who claimed they could get all the money back via the DD Guarantee minus their 30% plus vat

That doesnt seem realistic. The DD guarantee is not a scheme to get your money back if the company goes bust. It is to repay money taken incorrectly.

1. Is this common for a company to do this, I've search online, companies house etc and they've only been around 1 month.

No.

2. I don't want to pay their 30% and then the bank decided that for some reason the money needs paying back.

That is a strong probability. Once the bank find out a few months down the road that the company took the money correctly and they cannot get a refund from the company, they will come back and take the money from your account again.

3. Could the up front payments be claimed also under the Visa Debit Guarantee?

Only if you used VISA. Section 75 of the CCA does not cover direct debits.

[Deleted User]

Pearl1 wrote: »

I smell a rat

I smell a rat too. Why couldn't you have complained about this by yourself? I also find it hard to believe the Bank have agreed to refund you based solely on a 'phone call. If they've agreed to a refund without recourse to the other company, you could indeed find them clawing back the money in a few weeks or months.

Beware..

Sounds like (at best) money for old rope for this company..

Pearl1

To be honest I thought it was dead money, so when they rang I thought fair enough if I can get something back I'd be happy. They signed up a couple of other companies in my area today who I called and they also were a little sceptical.
Regarding the the DDs some where taking out twice in a month instead of just the one, so I'm thinking only these maybe accountable, but by the time the bank request it back my 30% is long gone
There were 2 payments paid up front by visa, although there was a payment plan for each payment

Pearl1

So the 6 direct debits have been refunded today, do I pay the 30% to Reclaims Uk?? I'm cautious as the bank may want their money back !!??

[Deleted User]

Pearl1 wrote: »

I'm cautious as the bank may want their money back !!??

I have no doubt that the Bank WILL want their money back. The Direct Debit guarantee only applies where you have a legitimate complaint about the original payment. The companies concerned will now inform the Bank that the money was taken for services and or products you purchased and that they were completely bonafide.

You've been scammed.

[Deleted User]

https://forums.moneysavingexpert.com/discussion/4902207

https://forums.moneysavingexpert.com/discussion/4902525

Others are also falling for this...

Pearl1

Who do the bank contact regarding the DD's if they're in administration??
Liquidators??

[Deleted User]

Pearl1 wrote: »

Who do the bank contact regarding the DD's if they're in administration??
Liquidators??

Does it matter? They will find out regardless..

picky123

This is slightly different from the speculative dd indemnity claims on the board this week.

You paid for a service, which was not completed, but at the same time it appears that some work was done.

They have done a claim and got all your money back, in theory the administrators will contact you and agree what percentage if the fees are due. This of course is complicated by the scammer co wanting their fee.

One other thoughts had, if co is fully in administration, then the original bank account is frozen, so the money might bounce straight back it of your account when the suppliers bank start to investigate.

Either way you are in a difficult place.