Chandler Simmons fees

alanaand

I stupidly used this CMC to reclaim PPI. RBS offered me £1174 (this was net figure after tax). Chandler Simmons have now invoiced me 24% of £1323 which is pre tax. The RBS offer (sent to them) clearly says total offer £1174. Surely they shouldn't be allowed to take their fee from the gross amount not paid to me? Can anyone advise?

[Deleted User]

alanaand wrote: »

Surely they shouldn't be allowed to take their fee from the gross amount not paid to me?

CMCs can and do charge up to 20% of the gross amount.

You'll also have to pay VAT, which is probably how you have calculated it at 24%.

Sorry.

alanaand

The VAT is already deducted and I will receive £1174. Don't think it is fair they take 24% from £1323.

Nasqueron

alanaand wrote: »

The VAT is already deducted and I will receive £1174. Don't think it is fair they take 24% from £1323.

It's not fair they take anything at all for just posting off your complaint but that's the way the cookie crumbles

[Deleted User]

alanaand wrote: »

The VAT is already deducted and I will receive £1174.

You've already paid tax on your redress, that's correct, but it's not VAT.

You'll additionally have to pay VAT on the Claim Company's fee.

It's too late now to do anything but pay up. Failure on your part to do so will end up in court.

alanaand

I understand I have to pay VAT on their fees (total 24%) but feel it's unfair it's calculated from gross figure and not what I will receive. Was hoping it was wrong as this wasn't explained at the start. It only states that I will pay 20% plus vat on any money I receive.

[Deleted User]

alanaand wrote: »

this wasn't explained at the start. It only states that I will pay 20% plus vat on any money I receive.

No, it clearly states on the legally-binding contract you signed that they charge 20% of any redress you are awarded, so not just the amount you actually receive.

There really is no point moaning only now that it is "unfair". The time to do that was before you signed the contract.

You'll have to pay the total bill (plus VAT) I'm afraid.

EDIT:
If it's any consolation, the 20% you will be paying is dwarfed by the amounts previously charged by such firms. Prior to the cap being imposed last year (and subsequent regulation) claim firms were charging up to a third of any redress (plus VAT). :eek:

So you got off relatively lightly.

Never use a Claims Management Company.

dunstonh

alanaand wrote: »

The VAT is already deducted and I will receive £1174. Don't think it is fair they take 24% from £1323.

You agreed to that when you signed up to them.

If you had come here first, we would have told you not to use a CMC as they only post their form (which is virtually identical to the FOS form) to the same address you would have used.

Plus, we always warn people that if you have arrears, defaults or amounts previously written off, that the CMC will and are allowed to calculate their fee against the full amount, even if you dont get it personally but is offset against the debt.