PPI company charges

dunstonh

You should never use a claims company if you have arrears, defaults or amounts written off. If the CMC know you are in that position then they should warn you in advance that you will be billed on the full amount even if you do not get "cash in hand".

TweedleDumb

Thanks for the advice. It was my IP who put me on to the CMC as it was a company they use so they were aware I was in an IVA.

dunstonh

In which case, you should complain to the CMC that they failed to make you are aware of the consequences and they are required to do so.

TweedleDumb

I have sent the details to my IP as it was their advice to me to use this compnay and will see what happens. Thanks for taking the time to reply.

dunstonh

check page 5:
http://www.justice.gov.uk/downloads/claims-regulation/handling-ppi-claims.pdf

Where consumers are in arrears, with or without the knowledge of the CMC, charging fees for
compensation that is not ‘cash in hand’ can result in the fees charged being greater than the ‘cash in
hand’ compensation awarded. This can put consumers in a difficult financial situation, and without
these circumstances being made clear to consumers at the outset, the service could fail to meet the
consumer’s needs contrary to Client Specific Rule 1(b). In most cases some advice has been given, so
this would also breach the requirement to only pursue a claim where it is in the interests of a client
to do so, which is in contravention of Client Specific Rule 1(f).

TweedleDumb

That is really helpful thanks.