Do I have to pay CMC charges on an old claim?

Orangestargirl

About 4 years ago a CMC company looked into various old accounts of ours to see if we were due any compensation for mis-sold PPI.
Gradually, over the space of the following couple of years, they confirmed that after looking into each account, we weren't eligible to make a claim, either because no PPI had been paid or the companies they contacted being unable to find details of our accounts.
However, last week, one of the credit card companies who had originally said we weren't due any compensation, contacted us directly (not via the CMC) and told us that after revisiting our case, we were in fact due compensation, and they enclosed a cheque.
Now, as the original CMC had closed the claim, and it was the credit card company themselves who re-opened the claim and looked into it again, do we still have to pay the CMC their 'cut' of 33% + vat?
In the paperwork with the cheque, the credit card company has confirmed that as the original claim was more than 6 months ago, they will not be forwarding any payment onto the CMC, and they also confirmed the CMC would not be getting a copy of the letter that was attached to the cheque.

dunstonh

either because no PPI had been paid

A CMC is required to only put in complaints with a valid reason. If you didnt have PPI, you couldnt have a reason for complaint. So, straight away, this gives a bad impression of the CMC.

However, last week, one of the credit card companies who had originally said we weren't due any compensation, contacted us directly (not via the CMC) and told us that after revisiting our case, we were in fact due compensation, and they enclosed a cheque.

This is actually quite common. Banks have been going back on records not attached to their electronic files and finding things that can lead to a new decision.

Now, as the original CMC had closed the claim, and it was the credit card company themselves who re-opened the claim and looked into it again, do we still have to pay the CMC their 'cut' of 33% + vat?

No. You dont have to pay them a penny. Guidance on this was published by their regulator Aug 2014 saying that if a change of decision takes place or an adjustment in amount paid that had nothing to do with the CMC, then they are not entitled to payment.

So, nothing to fear.

Orangestargirl

Thank you dunstonh. Do you know where I might get a copy of the guidance published in Aug 2014, just so I have it to hand should the CMC get in touch in the future?
Thanks for your help.

[Deleted User]

Orangestargirl wrote: »

Do you know where I might get a copy of the guidance published in Aug 2014, just so I have it to hand should the CMC get in touch in the future?

I doubt you'd want or need any such document.

If you are contacted (this won't happen since they won't be informed) then you can refer them to the Legal Ombudsman directive.

Orangestargirl

Thank you :-)

magpiecottage

This always assumes the CMC still exists - their attrition rate seems quite high now.