Ripped Off

abottm63

Hi
A word of warning. My cousin was approached in a shopping centre by a company offering to reclaim PPI on her behalf. They reclaimed successfully a total of £1,012. My cousin received a cheque from the company for the total sum of £12. I didn't think this was possible. I'm sure I read somewhere that companies acting on your behalf could not take any more than a third of your reward. Id this right.

-taff

No, it's not right.

Whats right is that they shuld have informed her that if she owed money to whoever she was complaining to, that company/bank/whoever would take any redress off what she owed them.
Then the CMC would get their cut.


It may be possible to make a complaint depending on who she used, and whether or not she was told this before she decided to employ them.



This is one of the main reasons we always tell people NEVER to use a claims company.

Nasqueron

abottm63 wrote: »

I'm sure I read somewhere that companies acting on your behalf could not take any more than a third of your reward. Id this right.

They can charge whatever % is on the contract that the person signs - I assume your cousin simply forgot the amount rather than signing without reading?

magpiecottage

If they did not explain clearly and unabiguously that she could do it herself via FOS free of charge, or implied that they could get a better outcome, then she can complain to them.

dunstonh

Also, CMCs are not allowed to approach you in a shopping centre. That is a breach. They can have a stall but they cannot approach you.

Insider101

abottm63 wrote: »

Hi
A word of warning. My cousin was approached in a shopping centre by a company offering to reclaim PPI on her behalf. They reclaimed successfully a total of £1,012. My cousin received a cheque from the company for the total sum of £12. I didn't think this was possible. I'm sure I read somewhere that companies acting on your behalf could not take any more than a third of your reward. Id this right.

Who was the bank? Most of them will pay directly to you rather than to the CMC and leave you to sort out whatever you owe them. This seems like a rather odd way to do it.


I would ask them to explain their charges and justify them. If you're feeling up for the fight, you could put in a formal complaint and state that they approached you in a shopping centre which, as Dunstonh says, is classed as face to face cold calling and in breach of their regulator's rules. And that you will report them to their regulator if they don't pay up.

As Magpie said, I assume they didn't tell your cousin she could do it herself, which is another breach of the MOJ rules and probably further cause for complaint.

Answer to the other question, they can "take" whatever your cousin signed up to and the time to question it would really have been before signing the contract, though I appreciate this is difficult when you are getting press ganged whilst doing your shopping!!!

Heathenladd

All the companies that do ppi are rip-off merchants and charlatans, but they prey on the people who are unware of the free way to do it yourself, the amount they take from the individuals money should be capped depending on the amount they try and swindle you out off, 30% is a stupid amount. Those ruthless barsestewards are in a get rich quick scheme preying on the innocent and naive. it should be exposed for what it really is... extortion.