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Claims management company (CMC) complaints - ask the ombudsman your question

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  • dunstonh
    dunstonh Posts: 117,116 Forumite
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    Sammy7046 wrote: »
    CMC instructed re PPI in 2015 rejected by Halifax in October 2015 referred to FOS not received anything further from CMC Halifax contacted me in July 2018 said FOS agreed their original decision but asked to consider unfair relationship goodwill payment made can CMC claim payment

    Yes they can.

    When the referral to the FOS is made within 6 months of the complaint outcome and results in a payment then the CMC can bill against that. Even if it takes 2-3-4 years for the FOS decision to be made.

    It is only when there is a gap and the complaint ended but resulted in a payment years later where the CMC cannot bill you.
    i.e. you complained and were rejected say in 2014. However, in 2018 you decided to enquire about a plevin payout and you received one. The CMC should not bill you against that as the plevin payout is not linked to the original complaint.

    In your case, it sounds like a plevin payout but not a new case raised but linked to the original complaint that was referred to the FOS (and probably put on hold during the consultation period). So continuous and not a new process.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Lucky340
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    Approximately 25 years ago I was sold an Endowment policy which I was told would cover any mortgage up to circa £40,000. This was used against the mortgage on our first house and then some years later probably late 90’s early 2000’s we started to receive profit warnings and were advised that the policy would not cover our mortgage. We had moved house by this time changed our mortgage provider and mortgage product to capital and interest so the endowment product no longer covered our mortgage. With the hubbub of normal life the endowment product got forgotten about however recently I recieved notice that the policy will mature next month and pay out the princely sum of £5600! Over the 25 years I’m sure I’ve paid in more than that to the product. Is there anything I can do about this? Can I make a claim , if yes how?:🤔
  • Nasqueron
    Nasqueron Posts: 9,324 Forumite
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    Lucky340 wrote: »
    Approximately 25 years ago I was sold an Endowment policy which I was told would cover any mortgage up to circa £40,000. This was used against the mortgage on our first house and then some years later probably late 90’s early 2000’s we started to receive profit warnings and were advised that the policy would not cover our mortgage. We had moved house by this time changed our mortgage provider and mortgage product to capital and interest so the endowment product no longer covered our mortgage. With the hubbub of normal life the endowment product got forgotten about however recently I recieved notice that the policy will mature next month and pay out the princely sum of £5600! Over the 25 years I’m sure I’ve paid in more than that to the product. Is there anything I can do about this? Can I make a claim , if yes how?:🤔


    In essence, no. The time to complain was when you started getting shortfall letters, this case will be time barred
  • dunstonh
    dunstonh Posts: 117,116 Forumite
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    I recieved notice that the policy will mature next month and pay out the princely sum of £5600!

    That suggests it was never set up to pay out £40000. An endowment with a target of £40k over 25 years would be around £30k to £50k ballpark. Or alternatively, you stopped paying into it.
    Is there anything I can do about this? Can I make a claim , if yes how?

    no and no. You have to raise a complaint within 6 years of purchase or 3 years from being reasonably aware of an issue. The mid rate projection showing shortfall is enough to start the 3 year clock ticking. Plus, any action you took (such as switching to repayment basis) can be used as well.

    Over 3/4 of all endowments are now timebarred from complaint. A few still slip through but interestingly, endowment policies now have the lowest uphold rate of any financial product at the FOS.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • [Deleted User]
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    dunstonh wrote: »
    You should never use a CMC when you have arrears, defaults, amounts written off as part of a settlement, bankruptcy or IVA.

    In those scenarios, the redress on an upheld complaint can go against the debt and you would not see the cash in your hands. However, the CMC can bill you against the full value of the redress even though you haven't seen it.

    A little nuancing of this is worthwhile. Bankruptcy - don't claim. IVA or Trust Deed - be cautious, but if the IVA or Trust Deed admin. will agree in writing that you can keep redress, then you can still make a complaint through a CMC.

    We know from experience that IVA and Trust Deed admins will do this where the IVA/Trust Deed was closed some time ago.

    So it's not a totally black and white situation, but those who have had IVAs should still consider a complaint if appropriate.

    Stuart
  • Nasqueron
    Nasqueron Posts: 9,324 Forumite
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    stuart_b wrote: »
    A little nuancing of this is worthwhile. Bankruptcy - don't claim. IVA or Trust Deed - be cautious, but if the IVA or Trust Deed admin. will agree in writing that you can keep redress, then you can still make a complaint through a CMC.

    We know from experience that IVA and Trust Deed admins will do this where the IVA/Trust Deed was closed some time ago.

    So it's not a totally black and white situation, but those who have had IVAs should still consider a complaint if appropriate.

    Stuart


    No-one is saying don't complain in these circumstances, we're simply saying not to use a claims firm full stop.


    The use of "we" in this context is starting to look like you work for a claims firm
  • [Deleted User]
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    Nasqueron wrote: »
    No-one is saying don't complain in these circumstances, we're simply saying not to use a claims firm full stop.

    dunstonh was saying don't use one when there is an arrears, IVA, bankruptcy etc.

    I was simply adding what is a worthwhile clarification on the situation with IVAs and Trust Deeds so that people would not be misled into ditching a complaint before they start. Not sure why you think it worth objecting to that. Nothing in my post advocates using a CMC.

    For anyone claiming themselves this is still relevant but of course particularly important for anyone thinking of using a CMC. Many (not all) of them will as stated charge a fee regardless of redress actually paid to the customer which is clearly a very bad thing.

    Simply saying that regardless of how a complaint is pursued, people who have had IVAs should not rule out making a complaint before checking with their IVA or Trust Deed admin what woudl happen to any redress.

    Stuart
  • Nasqueron
    Nasqueron Posts: 9,324 Forumite
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    stuart_b wrote: »
    dunstonh was saying don't use one when there is an arrears, IVA, bankruptcy etc.

    I was simply adding what is a worthwhile clarification on the situation with IVAs and Trust Deeds so that people would not be misled into ditching a complaint before they start. Not sure why you think it worth objecting to that. Nothing in my post advocates using a CMC.

    For anyone claiming themselves this is still relevant but of course particularly important for anyone thinking of using a CMC. Many (not all) of them will as stated charge a fee regardless of redress actually paid to the customer which is clearly a very bad thing.

    Simply saying that regardless of how a complaint is pursued, people who have had IVAs should not rule out making a complaint before checking with their IVA or Trust Deed admin what woudl happen to any redress.

    Stuart


    Claims firms are supposed to not take on IVA/Bankrupts etc because of the dangers of the person not getting any money but still a bill



    However, dunstonh's post did not say that you should not start a complaint, he just, rightly, said not to use a claims firm which is the correct advice. Claims firms add nothing to the process and everything they can do, a person can do themselves.
  • Gettingtherequickly
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    I currently have a complaint with Ombudsman, who has advised that Barclaycard have agreed that I should be re-imbursed, which is great news. Apparently, Barclaycard wrote to me advising me this in August, but I did not received the letter. I have requested a copy of the letter but was wondering what the time scale should be to receive it?
    A smile costs little but creates much :)
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Probably no more than a couple of weeks.
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