Parents fell into trap from CMC

Loubear78

Hi all I'm after advice for my parents.
My mum had a loan from HSBC back in 2004 which she reloaned on until September this year having one payment left.
Unfortunately a couple of months ago she had a PPI company cold call her and asked if she had any loans with PPI. My mum is not the brightest spark bless her and stated she didint know what PPI was or if she'd ever taken it out. So lo and behold bet the company thought their christmas had come early this year!!
I have only found out this week what has happened and told them to ignore all future calls and correspondence from these leeches. Unfortunately now 2 days ago they received paperwork appearing to be from both them and HSBC accepting that PPI was indeed owed to them and that they need to sign the paperwork and wait for the refund. After my conversation explaining what these companies do my mum is now in a right state and doesn't want to pursue it and is worried now this company has all her bank details etc. HSBC have offered to uphold the claim for her, my question is have they now got to pay this company over £850 in fees even though my mum had no idea what she was signing up for?? The company is Black Pearl.
Thank you for any advice xx

Insider101

In a word, yes. You can't get out of a signed, legally binding contract just by saying she didn't know what she was signing up for. She can presumably read? If she didn't understand it then she shouldn't have signed it. Sorry if this sounds blunt but there's no way she can get out of it.

dunstonh

my question is have they now got to pay this company over £850 in fees even though my mum had no idea what she was signing up for?? The company is Black Pearl.

HSBC never pay the CMC. Your mum does. So, she will get the redress from HSBC and the claims company will ask your mum to pay their cut out of that.

corbyboy

But if the CMC had bnotit cold called her she would have got no compensation at all.