Questionable PPI fees?

gbcbren

Hi

I signed up with PPI Specialists to reclaim my PPI. They dealt with a few banks and recovered some of it for me. Those were dealt with and the money went to PPI Specialists and therefore they took their fees before paying out to me. Fair enough.

However, Yorkshire Bank refused to deal with the company and contacted me to arrange payment. That was soon sorted and in my bank. PPI Specialists are now chasing me for their 25% fee of that money. Part of their t&c's state:

'3.3 You agree that upon receipt of any single or multiple payment of compensation paid directly to you, our fees will become payable. You agree to notify Debt Specialists Limited upon receipt of any compensation by you, whether in part or full, made to you directly by a product provider or lender, in connection with a claim. You agree to pay the invoice within 14 days.'

This sort of sounds like I must pay up, but does anyone know if the fact the bank didnt deal with them means the company have no right to claim the fee?

Appreciate any help you can give!

roonaldo

Why did they refuse to deal with the claim company? Are you saying you made the complaint directly and they were no longer involved?

dunstonh

The normal method inst hat the bank/firm will refund directly to you but let the CMC know the amount. Getting the money via the CMC is actually an unusual way.

This sort of sounds like I must pay up

Of course you do. What on earth makes you think you cant pay them for doing what you employed them to do?

but does anyone know if the fact the bank didnt deal with them means the company have no right to claim the fee?

They did deal with them. They just didnt send the money to them as would be expected. They dealt with the complaint they submitted. Just not the payment.

maggy50

gbcbren wrote: »

Hi

I signed up with PPI Specialists to reclaim my PPI. They dealt with a few banks and recovered some of it for me. Those were dealt with and the money went to PPI Specialists and therefore they took their fees before paying out to me. Fair enough.

However, Yorkshire Bank refused to deal with the company and contacted me to arrange payment. That was soon sorted and in my bank. PPI Specialists are now chasing me for their 25% fee of that money. Part of their t&c's state:

'3.3 You agree that upon receipt of any single or multiple payment of compensation paid directly to you, our fees will become payable. You agree to notify Debt Specialists Limited upon receipt of any compensation by you, whether in part or full, made to you directly by a product provider or lender, in connection with a claim. You agree to pay the invoice within 14 days.'

This sort of sounds like I must pay up, but does anyone know if the fact the bank didnt deal with them means the company have no right to claim the fee?

Appreciate any help you can give!

Your first three words. I signed up .... Means you are obliged to pay them wether the payment comes to you or them ..
They have the right to be paid I personally would not use a claims company they gain you lose !! Just for a few minutes paperwork and a postage stamp .

[Deleted User]

gbcbren wrote: »

This sort of sounds like I must pay up

It very plainly states you must pay up. Failure to pay will lead to debt collectors and ultimately court action. Banks don't pay the redress to "specialists", they pay it direct to the customer. Any contract you've signed with a Claims Company is nothing to do with the Bank and that is why the customer must pay the CMC.

gbcbren

They contacted Yorkshire Bank but they just told them they would deal directly with me. So because they have rung me to sort it out I thought maybe wouldn't owe the fee. They got their fees for all the other money reclaimed which they dealt with so why should they get the fee for the one which was sorted between myself and the bank?

[Deleted User]

gbcbren wrote: »

They contacted Yorkshire Bank

These are the important words. You didn't contact the bank, they did.

You have to pay.

gbcbren

It is actually a friends problem, I would never use them because the fees are ridiculous! Just wanted to see where he stood with it but if he's no option to pay up then he will. Was just worth a try for £240!

Thanks to all for your answers

dunstonh

The bank will not pay them but the complaint was looked at due to the letter they sent in. That is all claims companies do. They post the complaint. They then sit back and wait.

The fact the money went direct is the most normal way. Most banks/firms will not pay the CMC and will refuse to do so if asked. They pay the individual and the individual pays the CMC their cut.

welshgasman

I'd be interested in which banks actually pay the CMC.

Would you care to name and shame?