Dropping a PPI company mid claim

Nannyogg82

Hi all

I was previously in a debt management programme with a company and after I paid off all the debt I was approached by the company asking if I would like them to investigate my creditors to see if I could get PPI back and they would take a 35% cut. I was contacted direct last week by the lender and they said that the claim was almost complete and I would hear back soon. I asked for them to remove authority for the claims company to act on my behalf and to deal with me direct.

I have just received a very angry call from the claims company saying that unless I restore authority I may be presented with a bill, although they have no way of knowing if I will receive a pay out now I have removed authority,

I know it's rather underhand way of doing things but I hate the thought of this company taking such a huge cut. Where do I stand legally? Can they force me to pay a percentage or an administration bill or can I rest easy?

Thanks.

glentoran99

Nannyogg82 wrote: »

Hi all

I was previously in a debt management programme with a company and after I paid off all the debt I was approached by the company asking if I would like them to investigate my creditors to see if I could get PPI back and they would take a 35% cut. I was contacted direct last week by the lender and they said that the claim was almost complete and I would hear back soon. I asked for them to remove authority for the claims company to act on my behalf and to deal with me direct.

I have just received a very angry call from the claims company saying that unless I restore authority I may be presented with a bill, although they have no way of knowing if I will receive a pay out now I have removed authority,

I know it's rather underhand way of doing things but I hate the thought of this company taking such a huge cut. Where do I stand legally? Can they force me to pay a percentage or an administration bill or can I rest easy?

Thanks.

Yes they can, When you agreed to use them you agreed to pay them now they have done all the work you cant back out and keep all the money, you will need to pay them now whether you receive a payout or not, that would have been in the contract you signed

Nannyogg82

I signed a form that gave them authority but there were no T&C's attached with it. Only the name of the creditor company and my authority signature box.

tomtontom

There must have been some further information as you knew what the fee was.

Why do you think you should not stick to the terms you agreed to? Seems to be a regular habit of yours

On a positive, they will have the option to take you to small claims for the money you owe them, in which case you'll get a whole load of fees added as well

Nannyogg82

A regular habit? This is my first ever post on here lol.

I only know about the 35% because that's what was explained to me over the phone.

tomtontom

Nannyogg82 wrote: »

A regular habit? This is my first ever post on here lol.

I only know about the 35% because that's what was explained to me over the phone.

You were in a DMP - so you hasn't stuck to the terms of your credit agreements either

Take this as a lesson that when you agree to something you need to stick to your side of that agreement. If you don't do this, you will face consequences, in this case debt collection and if still not paid, a CCJ.

magpiecottage

If they really didn't provide the terms and conditions prior to you signing then you can complain to the CMC - and if you are unhappy with the response you can then complain to the Legal Ombudsman.

However, tomtontom is right. If you keep entering into legal agreements without first understanding what you are letting yourself in for, you are going to get into more and more trouble.