Avoiding EMCAS fees

Bozza

My father has just been round to see me. Unknown to me, before today, he was contacted by EMCAS asking if he had an endowment mortgage in the past and, if so, he may be able to make a claim. Figuring something was better than nothing, he authorised them to act on his behalf - signing something to indicate this. (I have not had sight of any documents regarding this, so I do not know the extent of what was agreed)

Today, out of the blue, he has received a letter from Lloyds, the bank in question, offering c£12,000. It has come direct from Lloyds, although mention is made of EMCAS so I assume a copy is en route to them too.

From reading around, it seems that EMCAS are likely to want 30%, or more, plus VAT for their 'services' which seems somewhat exorbitant and has somewhat prayed on the naivety of my elderly father.

It strikes me that if my father signs the forms and returns them to Lloyds, he will receive the gross claim proceeds from them and, presumably, at some point EMCAS will then make claim for their fee. My father could, of course, also instruct Lloyds to no longer communicate with EMCAS and he will deal with the claim himself.

Has anyone been in this position or similar? Would EMCAS pursue the money hard with threatening calls, letters and, ultimately, court action? Is it worth resisting or just putting down to experience, taking the net proceeds and conceding that it is still better than nothing?

societys_child

It may seem exorbitant, but your father agreed to pay for their services. They have done their job and will want paying.
Their contract will be watertight, and they will go to court if necessary

dunstonh

It strikes me that if my father signs the forms and returns them to Lloyds, he will receive the gross claim proceeds from them and, presumably, at some point EMCAS will then make claim for their fee.

Correct. That is how it works.

My father could, of course, also instruct Lloyds to no longer communicate with EMCAS and he will deal with the claim himself.

Too late. The complaint has been reviewed and outcome given.

Would EMCAS pursue the money hard with threatening calls, letters and, ultimately, court action?

yes they would. Claims companies are vigorous at getting their money.

Is it worth resisting or just putting down to experience, taking the net proceeds and conceding that it is still better than nothing?

If you employ a company to use a free of charge complaints process then you should pay them. As much as all of us here hate claims companies (and this one in particular is one of the worst ones) he entered into a contract with them.

[Deleted User]

Bozza wrote: »

Has anyone been in this position or similar?

Posts like yours appear with frightening regularity. Unfortunately, you (or rather, your father) has no option other than to pay what he agreed to when he signed the legally-binding contract. Any attempt to avoid paying will just lead to debt collectors and, ultimately, court action to recover the amount owed.

magpiecottage

He must be one of the few that EMCAS has had success with. Everything I have seen from them of late I have just timebarred.