CMC gone out of business

Atrube

Hello,
Long story short......

I took out a loan with M&S financial services in 2002. The loan was £20k plus PPI of £4k + interest. Total repayable £32k.

I defaulted on the loan in 2004 and it was transferred to DG Solicitors, who got a CCJ and charging order (restriction) on my home. I am still making payments (albeit reduced instalments).
In 2011, I started a PPI reclaim through a CMC. The CMC has ceased trading and handed over the file.

It appears they wrote to M&S who in turn passed it to DG. DG offered approx £3k which I rejected and their last correspondence was in December 2012 when they told my CMC that they would provide a detailed breakdown within 4 weeks.

There appears to be no further correspondence.

Can anyone please advise what my next move should be?

Many thanks.

dunstonh

Lucky escape. You should never use a CMC when you are in arrears, defaulted or had amounts written off. The money can end up being used to clear your debt rather than coming to you as "cash in hand". Yet the CMC will bill you on the amount repaid by the firm. Not what you get.

Why did you reject the offer? The redress method is defined. It is not something you haggle. You would only reject if the calculation was wrong. Whilst you paid £4k in premium, when you defaulted, part of the PPI should have been rebated within the debt. So, it is possible that getting back less than £4k is the right outcome. However, the calculations they gave would let you know what they have done.

Atrube

dunstonh wrote: »

Lucky escape. You should never use a CMC when you are in arrears, defaulted or had amounts written off. The money can end up being used to clear your debt rather than coming to you as "cash in hand". Yet the CMC will bill you on the amount repaid by the firm. Not what you get.

Why did you reject the offer? The redress method is defined. It is not something you haggle. You would only reject if the calculation was wrong. Whilst you paid £4k in premium, when you defaulted, part of the PPI should have been rebated within the debt. So, it is possible that getting back less than £4k is the right outcome. However, the calculations they gave would let you know what they have done.

Hi thanks for your reply. Not sure if my heading is wrong as not many replies as my focus is more on getting back what i'm owed, rather than the CMC issue.

I understand your comment but the PPI was £4k + interest = £5575 and that was in 2002 and added to the loan. I appreciate I have defaulted but I am still paying and as they have a charge on my home I am likely to end up paying it all back, either in instalments or when I sell or remortgage. Therefore, if i took the £3k, surely I would end up still paying part of the the PPI and/or the interest on it ?

Atrube

P.s. I don't think I rejected it thinking about it, I think I asked for clarification which I'm still waiting for.

-taff

you will have to ask dg what the breakdown is.

Atrube

-taff wrote: »

you will have to ask dg what the breakdown is.

So the fact that nothing has happened since Dec '12 (nearly 18 months ago) is ok? Doesn't matter ?

Can I just pick up where it was left off?

-taff

you can ask them what's happening yes.

[Deleted User]

You should have just accepted the redress, as Dunstonh said, the amount is defined. You will only get back the amount you actually paid and this amount will have changed when you defaulted as the PPI would have been rebated within the debt.

Are you sure the redress amount offered to you originally was not subject to offset against monies written off as part of whatever debt management plan you are on?

http://www.moneysavingexpert.com/banking/setting-off

Atrube

Nothing has been written off, I am making monthly payments and the balance is reducing and there is no reason to suspect they will not get paid in full, especially if I remortgage.

What I don't get, and I think I made this mistake with another claim, is that they calculate the rebate based on a % of what 'has been paid', as you say, however I think this is wrong.

For example:

I borrowed £20k + interest of £7k = £27k.
plus PPI £4k + interest £5.5k
Total borrowed £32.5k.

I have repaid so far £10.5k and my balance as per their letters is £22k.

So if they calculate the PPI as being a % of whats paid, they will deduct £3k from the £22k leaving £19k o/s.

However, I say, that if PPI had never been added to the original loan, the OL would have been:

£20k + interest of £7k = £27k
Less payments to date of £10.5k = £16.5k o/s and not £19k

[Deleted User]

Atrube wrote: »

Nothing has been written off, I am making monthly payments and the balance is reducing

You mean you are paying all the interest too? I doubt this is the case.

Atrube

Moneyineptitude wrote: »

You mean you are paying all the interest too? I doubt this is the case.

Ok, well I am paying all the interest on the OL because my balance is based on the OL + interest. They may be loosing out on further potential interest, but certainly the interest of 13.9% on top of the £20k is being paid.