Ppi

Asum8449

Hi, I'm doing a ppi claim for my grandparents, the money has gone back to the insolvency and the ppi company are saying my grandparents will still need to pay them a fee for getting the money back, but they haven't received the money as it went straight to the insolvency, is this correct that they still need to pay the ppi company a fee as they haven't received the money. Thanks

Nasqueron

If you are doing the complaint, why are you paying a CMC?

Unfortunately yes the money goes to the insolvency as was always the risk if your parents had PPI on old loans which they didn't pay back in full. Did you tell the claims firm they were insolvent?

You need to complain to the legal ombudsman about the claims firm who shouldn't have taken this case on

http://www.legalombudsman.org.uk/cmc/

dunstonh

I'm doing a ppi claim for my grandparents, the money has gone back to the insolvency and the ppi company are saying my grandparents will still need to pay them a fee for getting the money back, but they haven't received the money as it went straight to the insolvency, is this correct

Yes it is correct. The CMC is entitled to take their percentage against the redress even if it is not personally received.

That is why there are repeated warnings not to use a CMC when you are in arrears, defaults or had amounts wrirten off as part of an agreement.

However, if your grandparents told the CMC that they were in that position then the CMC should have warned them and most of the "better" ones will refuse to take the business. So, there is possibly grounds of comaplaint to be made to the CMC.

Asum8449

Hi, we gone through a ppi company to retrieve the money, how been told this morning even through the money has gone to the insolvency my grandparents still need to pay the ppi company a fee, sorry should of explained better, any help would be greatfull.

Asum8449

Sorry just read the comment again, is there any way they don't have to pay the fee because they can't afford it, the company was told about thier bankruptcy.

dunstonh

Asum8449 wrote: »

Sorry just read the comment again, is there any way they don't have to pay the fee because they can't afford it, the company was told about thier bankruptcy.

if the company was told about it then they should have given the warning and suggest not claiming as they were never going to see the money.

So, they need to complain to the CMC that they were missold (again).

Nasqueron

complain in writing to the CMC (not email, not on the phone)

Keep a copy with proof of posting (free from the PO). Do not use tracked mail. Label it clearly "complaint"

Keep the letter simple - the CMC were told of the bankruptcy, they should have known the money belongs to the OR, not your parents. They should have known they would not get any money and thus not taken the case on.

Give them 8 weeks to respond. Then complain to the ombudsman I linked above (or sooner if they respond)