After using a ppi claims company do you have to pay them?

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After using a ppi claims company do you have to pay them if you take the paperwork to the bank and the bank pays you directly?

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  • Saver-upper
    Saver-upper Posts: 2,340 Forumite
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    I am not entirely sure,but from reading posts on here,I think what happens is the payment goes to them,they take their cut,THEN you get the rest.They don't do anything you can't do yourself,so you would be much better off doing it yourself.
    Good luck.
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Yes - if you engaged them to post your complaint off and pay for the stamp and envelope, you need to pay them.
  • amersall
    amersall Posts: 17,008 Forumite
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    edited 10 July 2016 at 8:31PM
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    If you did not sign to give the company authority to make the claim and you just took the PPI claim form from the company into the bank,you have no contract so the answer is no.

    If you signed giving authority then you have to pay them the fee based on any redress you may receive. The bank will notify the claims co of the redress,if you do not pay the fee they will pursue this relentlessly.
  • -taff
    -taff Posts: 14,593 Forumite
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    If you signed a contract, then yes, you will hve to pay them, otherwise, they'll take you to court.
    Shampoo? No thanks, I'll have real poo...
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
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    There are two possible exceptions to this.

    If the claims company's authorisation from the Claims Regulator is withdrawn, the contract it has with you will automatically terminate.

    If it has not secured an offer of redress by that time then it will not be able to secure the win needed to entitle it to payment under a No Win No Fee agreement.

    The other is if the product provider revisits the case and offers further redress after the original complaint was settled. This is because the original settlement ended the contract with the CMC.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    from reading posts on here,I think what happens is the payment goes to them,they take their cut,THEN you get the rest.
    No.
    The Bank pays the restitution direct to the customer.
    The Claims Company then bills the customer for around a third (plus VAT) of the total refunded.
    They don't do anything you can't do yourself,so you would be much better off doing it yourself.
    Yes.
  • dunstonh
    dunstonh Posts: 116,655 Forumite
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    I am not entirely sure,but from reading posts on here,I think what happens is the payment goes to them,they take their cut,THEN you get the rest.They don't do anything you can't do yourself,so you would be much better off doing it yourself.
    Good luck.

    The vast majority of banks and card providers pay the redress direct to consumer. The claims company then bills the consumer for their fee plus VAT.
    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.
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