Negotiating Claim Company Fees?

narahs

OK - it's a fair cop - I engaged a PPI claim company not really thinking anything would come of it, but it did. Now looking in detail at the fees (I know, I know - don't go there), I realise I owe the claim company quite a bit of cash (25% plus VAT).

Part of me thinks, it's money I didn't know would be coming to me so just cough up and forget about it. But part of me is cringing inside now knowing how easy it was to claim. The refund even came from my own bank that I've been with for decades - I could have just written to them had I known. Anyway, sob story over...

Question - has anyone ever negotiated the fee they end up paying to the claim company? How do they even know that my bank refunded the PPI when the paid it direct into my account? Any advice would be gratefully received (except "you should have done it yourself" - I know already!). Thanks

[Deleted User]

narahs wrote: »

has anyone ever negotiated the fee they end up paying to the claim company?

Your legally binding contract is that they represent you in exchange for a set % of any redress you receive. This is not open to negotiation after you've already signed the agreement and won the complaint!

narahs wrote: »

How do they even know that my bank refunded the PPI when the paid it direct into my account?

The Bank will inform your CMC (and the CMC can easily check regardless-they are your representatives).
Don't be lulled into a false sense of security if there is a delay before they bill you..


This forum always advises against the use of Claim Companies. Unfortunately, your "buyer remorse" has come far too late and you'll have to pay the fee or face legal action.

dunstonh

But part of me is cringing inside now knowing how easy it was to claim.

Its actually quicker to DIY than use a claims company as the same details are needed with both but you dont enter in a contract and need that completing if you go direct.

the refund even came from my own bank that I've been with for decades

That is how it should be.

Question - has anyone ever negotiated the fee they end up paying to the claim company? How do they even know that my bank refunded the PPI when the paid it direct into my account? Any advice would be gratefully received (except "you should have done it yourself" - I know already!). Thanks

Why would they negotiate? They know you have the money and have a contract from you agreeing their charge. The banks tell the CMC the outcome.

CMCs are parasites. We really don't like them. However, if you choose to employ one to put a stamp on a envelope (which is all they effectively do) and sign a contract agreeing a fee to do that then so be it.

narahs

Thought as much - fair enough thanks. I'll now campaign for others not to fall into the same trap!

Cheers

Welshie28

Not all CMC's are parasites. I agree that many are, especially when they charge upfront or cold call people. There are actually many people in this country who enquire with CMC's themselves as in their own words 'they can't be bothered to do things themselves so would rather sit back and let the company do it for them'.

societys_child

would rather sit back and let the company do it for them'.

Which doesn't actually happen though does it. The claimant still has to provide the details, enabling the cmc to use the free claims process.

May just as well do it yourself for the cost of a phone call/ postage stamp / SAR if necessary .