CMC company pursued claim without signed contract


I recently contacted a CMC recommended to me by a family member. The CMC said I was under no obligation and they could find out if id had PPI for free.
I could then decide whether to use them to pursue the claim or not.

After a few weeks, I received a phone call from the CMC saying they had found PPI on two accounts. I was on holiday at the time of the phone call, and in my haste, told them verbally to carry on. The guy from the CMC said he would send an email contract out to me which I had to send back with written confirmation for them to continue. Later that evening, after discussing it with my wife, I decided when we returned home from holiday I would do some research and possibly pursue the PPI claims myself or at least negotiate a lower fee if possible. So I held onto the email, thinking they would not continue the claims without it being returned.

A few weeks after my return from holiday, and having been busy with other things, I was very surprised to get a text message off my bank saying that they had received the complaints and were investigating.

When I contacted the CMC immediately and asked why they had continued with the claim without the return of the email/contract they’d asked for, I was told bluntly that a verbal ok was enough to proceed with a claim.

This didn't seem right so I rang back again the next day to be told off another person that "new legislation" meant that they could act purely upon a verbal ok.

I have since looked online and found contradictory information saying that a signed contract is needed and a verbal ok is not enough. I have emailed the company involved saying I refuse to pay the fees as they acted without a signed contract.

I feel as if they knew they were in the wrong and lied to me in order to get the fees before I noticed anything was amiss.

Am I within my rights to refuse to Pay their fees?


  • [Deleted User]
    A contract can be verbal.

    Looks like it will now come down to who is prepared to pursue it the hardest and at what costs.

    They may give up, but given they have nothing else to do with their time apart from put stamps on letters, they may not.
  • dunstonh
    dunstonh Posts: 116,669 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    CMCs are required to have a wet signature.

    However, before you get too excited, the CMC would need your signature on their letter of authority. That would be a wet signature. The follow up permission to proceed does not need to be a written signature.
    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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