claim company wants 13500% of award

discod226

I authorised a claim company to investigate my ppi and receive some small awards from some accounts but after nearly a year I received a letter saying I was being awarded £6200 - £6061 a total of £139 from a car finance company. I assume this is because I defaulted on the loan returned the car and settled the debt with a collection agency not the finance company. But the ppi company are asking for £1888 payment assuming they are quoting the £6000+ as the reward although I would only receive £139 am I legally required to pay them

[Deleted User]

Yes. Their fee is based on the full amount of redress achieved.

So it's not 13500%.

IAmWales

Did you pay off the full debt or did you pay a reduced figure?

Did you think you were going to get money back that you owed to the lender, and were you upfront about your outstanding debt to the claims company?

dunstonh

You should never employ a claims company when you have defaults, arrears or amounts written off as part of an agreed settlement.Claims companies bill against the full amount of the redress whether you receive it cash in hand or set off against the debt.

In your case, the redress was £6200 and they should be billing against that figure. Not the £139 you are getting cash in hand.

[Deleted User]

IAmWales wrote: »

were you upfront about your outstanding debt to the claims company?

This is key. If the OP made the claim company aware of this outstanding debt prior to the complaint, he has a good case to refer to the Legal Ombudsman.

If he didn't mention the debt he is on much shakier ground, but I'd still get in touch with the Legal Ombudsman;

Legal_Ombudsman wrote:

Live chat function Mon-Fri between 08:30am and 5:30pm: https://legalombudsman.live-chat-help.com/
Call Mon-Fri between 08:30am-5:30pm on 0300 555 0333 or on minicom 0300 555 1777
Email cmc@legalombudsman.org.uk
Or write to Legal ombudsman, PO Box 6804, Wolverhampton, WV1 9WG

Do not complain that the bill is 13500%, though, because it very plainly is not..