PPI Claims Firm Payment

ChrisEll

My wife recently signed up to a PPI claims firm to see if we had anything outstanding (previously we had made all claims ourselves). She wasn't expecting anything to come back as we thought we'd already claimed everything but a few weeks later I got a letter from Lloyds bank thanking me for contacting them and saying that they needed more details. Along with it came a 6 page form which I had to fill out.
Thing is, I'd already filled this form out last year and when I sent it back Lloyds told me that there was nothing on thier system. But as we were using the PPI firm and assuming that theyd found something I thought I'd give it another shot. So I filled the form out and waited. A few weeks later I get a phone call from a Lloyds rep who wants more details. A conversation of over half an hour ensued regarding two loans I had taken out in the late 90s.
Yesterday Lloyds coughed up £2000. Today I received a letter from the PPI company congratulatiing me and saying they'd send me a letter for their fee. I therefore decided to ting them and ask them how much that fee was. Turns out they're looking for 42% plus VAT. That's basically £1000. Half of what I was awarded. I've asked for a copy of the contract and am assured that the 42% is stated and I'm not arguing with that. What I do diispute is the fact that they actually earned that amount.

My question is this: Is there anyway to fight this amount. I don't dispute the fact that I owe them something but apart from them sending the initial contact lettter, I dd all the work!! A couple of hours fishing around for old statements, filling out this long form and then going through everything with the Lloyds rep on the phone. I was of the understanding that I just let the PPI firm get on with it. At the maximum send them a few details. Not have to do everything bar the initial contact myself. Was thinking of offering them half the amount and even that seems extreme.
Or do I just have to bite the bullet and pay up?

Also have to admit that I'm pretty annoyed at Lloyds for telling me that they couldn't find me on their system after filling in the form the first time. Only difference with sending the form the second time would have been that it was after they were contacted by the PPI firm. Seems like they were hiding the truth until they got rumbled.

ChrisEll

I said I don't dispute the 42%. And as I'm waiting on a copy of the contract I have no way to argue against it.

But their website says they charge 35%.

Are they allowed to do that?

[Deleted User]

Look like it will be 35% plus VAT (which equals 42%). In any case, it will be whatever you agreed to in the contract.

The problem is, all claims companies ever do is post the initial form for you. So they've done their job. You're the only person with the information, so you need to do the work. But they do provide the stamp.

Your best argument would be that you had already initiated contact with Lloyds. But then you may face a fee for not having told them this, and wasting their time.

ChrisEll

The first Lloyds form went in a year before we signed up with the PPI firm. Once they received it they sent a letter sayingt that unless there was any more info they considered the matter closed. I would think that means that my own initial contact was irrelevant when later contact was made by the PPI company.


So basically cough up then?

[Deleted User]

I think you'll have a fight on your hands to avoid paying either for the claim, or the fee for wasting their time.

They won't give up chasing their money for their contribution easily. After all, stamps are expensive these days...

ChrisEll

Thanks for the info.

Live and learn I guess. And I hate to say it but after getting knocked back the first time by Lloyds, I wouldn't have got a penny unless these guys got involved.

One final question - they're charging 20% VAT on the gross figure. I've paid tax on top and they've put VAT on that and included it in their fee. Is that correct?

[Deleted User]

It is. They charge on the gross amount

BoGoF

Small consolation but you should be able to claim some of the tax back.