PPI company charges

jste7e

Can a PPI charge you commission 2 years after you have had your settlement ?

I used a PPI company in 2011. They took my details. A few months later my bank sent me paperwork to fill in. which I did, then in Jan 2012 I recieved a settlement. I heard nothing from the PPI company.

To this day I have no idea what the PPI company actually did other than get the bank to send me the forms.

Today , over 2 years later the PPI comapny have sent me an invoice for 25% of the settlement I got back in 2012 .

is this right ??

[Deleted User]

jste7e wrote: »

Can a PPI charge you commission 2 years after you have had your settlement ?

Obviously, they've only now realised you had a payout. You signed a legally-binding contract with this firm to pay them 25% of any redress awarded to you. You should have paid them in 2012, you'll now have to pay them in 2014. Expect debt collectors and/or court action if you don't.

jste7e wrote: »

To this day I have no idea what the PPI company actually did other than get the bank to send me the forms.

Many people realise too late that Claims Companies do nothing you could not do yourself.
Nevertheless, your debt isn't going away..

dunstonh

To this day I have no idea what the PPI company actually did other than get the bank to send me the forms.

That will be all they did.

Today , over 2 years later the PPI comapny have sent me an invoice for 25% of the settlement I got back in 2012 .

is this right ??

You employed them. Did you pay them? If not, then they have every right to be paid for the services you employed them for.

TweedleDumb

If RBS are now paying out anyway, do I still have to pay a Claims Management Company 25% if they were engaged on a no win no fee basis. I believe that the award was not due to their efforts but paid as a result of a review of my 3 previous attempts to reclaim PPI.

Also I am in an IVA is there any part of the redress payment that I get to keep such as the interest at 8%.

Grateful for any advice.

magpiecottage

TweedleDumb wrote: »

If RBS are now paying out anyway, do I still have to pay a Claims Management Company 25% if they were engaged on a no win no fee basis. I believe that the award was not due to their efforts but paid as a result of a review of my 3 previous attempts to reclaim PPI.

It is a no WIN no fee agreement, not a no WORK no fee agreement.

Also I am in an IVA

That may mean the CMC ought to have taken account of the fact that you might not get any cash with which to pay its fees and warned you accordingly. If so, you may have a legitimate complaint against it.

-taff

You engaged the company and as you've found out, you did most of the work anyway, but yes, you still have to pay them because if it was no win no fee, you won did you not?
If you are in debt to, have arrears with, or have had amounts written of with the company you complained to, they can keep all of the redress, they don't have to give you anything, it all depends on what they want to do.

If they keep everything, you are still liable to pay the claims company out of your own pocket, unless you can show they didn't make you aware that if you were in arrears or had amounts written off, or were in default, you might not get any redress personally, but that it would go towards the debt.



You are a textbook example of why you should never ever employ a company to do what you could have done yourself.

TweedleDumb

Thanks for all you advice.

Unfortunately I was in a very bad place with the breakdown on my marriage when I took out the IVA last year and I was in an impossible financial position. When I took out the IVA I was asked about outstanding PPI Claims and I told them I had ben turned down 3 times. It was my IP who said about using the CMC within their group. I was advised by my IP that I got to keep first £1000 of any settlement which is clearly not the case. I will review the paperwork I rec'd again from the CMC.

My IVA Supervisor has changed now and my new supervisor says PPI is a grey area. Not a lot of help really. I really needed some of that money to pay my legal bills for my divorce as my solicitor has stopped work until I pay more off my bill so is was needed for priority debts. RBS say they will pay the award to the IVA account which I understand as creditors must maximise on their returns.

My supervisor says PPI is an asset. My IVA says the only assets to be included in my IVA is my house. Confused - Totally ?

I spoke to my supervisor when I got the letter from RBS. They didn't seem to know where I stood in relation to this award other than it had to be paid to the IVA.

I just feel a bit mislead. I probably was not in a good place to be making such financial decisions. I maybe shouldn't have gone for an IVA but I was in a desperate situation at the time.

-taff

If you emloyed the company recommended to you by your supervisor, and you have that in writing [including the bit about a thousand pounds], and they didn't let you know you'd still be liable for a fee, you have a good case not to pay them.

You could ask RBS tor efund the interest portion of the PPI, they may or may not agree. Either way, if your redress comes to you personally, that is if the company don't use it against any debts you have with them, then you can do what you like with it, it doesn't have to be used in your IVA.

TweedleDumb

I really could just cry....


Despite knowing I am in an IVA, Nat West have offset my PPI payment against arrears on my credit card. They did not give me time to respond to the customer offer letter sent. The award is not being split amongst my creditors in the IVA.


I had employed a CMC recommended by my IP so now I have another creditor to pay.


I just am ready to throw in the towel and go bankrupt.

-taff

The award won't be split among creditors unless you pay the money to the IVA.

Go through the CMC aperwork and see if you signed against anything that told you about the charge even if you were in arrears etc.

The 8% interest on credit cards is only paid if you would ave been in credit so it's possible there wasn't any.

TweedleDumb

I repaid the credit card in 2009 and the award of the PPI relates up to Feb 2009 when I cancelled the PPI policy.


I got into debt with on the same NAT WEST credit card in the last 4 years which is why I had to take out an IVA as my husband happily loaded all sorts on there for our new house and then walked out. NAT West have offset my £6000 award against this debt. I did not get a chance to even accept the offer they paid it to themselves on 26th March. The offer shows:


Refund of all premiums up to 2009
Refund of compound interest of these premiums
Refund of erroneous over limit fees and compound interest on this
Gross interest of over £2000
Less tax at 20%




The FOS has told me they can do this even though they are listed as a creditor in my IVA. Their letter of offer states:


"If you are or have been subject to an I.V.A ...any payment we make will be made to the relevant account. Any disbursements due to you under the terms of the arrangement will then be managed by the Group' Insolvency Team. Please ensure you provide a copy of this letter to your insolvency practitioner"..which I did.


The CMC paperwork states there is a charge of £125 + VAT investigation fee which I will be liable for. It says a success fee of 25% + Vat will be charged on each successful claim.


RBS say they have no letter of authority on file from the CMC so it looks like it will be £125+VAT. They say it was a result of a review into my original complaint and subsequent 2 further ones all of which they turned down.


A very bitter pill to be swallowed ....


Thanks for your help again much appreciated.