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PPI team

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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dannyjebbdannyjebb Forumite
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edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Hi,

I have just been to my Grandmas house and just by chance she had received a letter for PPI from 'PPI team' She is 90 so not in the slightest bit knowledgable of claiming this back herself.

The story goes,

She had a call from this company, asking if she wanted them to claim PPI for her. She gave her details and thought nothing of it.

She has now received a letter from the bank giving all of the loans she had (Yorkshire bank). This gives the total PPI she has been given back. This has gone into her account now and she has received a letter from PPI team 'settlement invoice' This is obviously including their ridiculous fee, but also states the fee is as agreed in the T&Cs. Apart from one phone call she has never had any paperwork to sign or anything else.

Has anyone dealt with this company before? The total PPI reclaimed (after income tax) was £2164 and the companies fee is £1184 (over 50%).

I am just wondering where she stands with not paying this company as as far as I can see other than a call from them offering to reclaim this for her, she has not signed a form which included the T&Cs or even been told about them?

Any advice much appreciated.

Thanks
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Replies

  • zx81zx81 Forumite
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    Ask them for evidence of the agreement.

    If she has signed up to them, she'll need to pay, as they've done their job, however pointless that job may have been.

    If they can't evidence it, she can refuse to pay, thought expect them not to give up easily.
  • dannyjebbdannyjebb Forumite
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    Thanks, She is adamant she had never signed anything (she would have happily sent off a cheque today if I hadn't had been here) She has been scammed a lot in the past with phone calls from companies and had paid for inexistent services over the phone!! Due to this she now never gives card details over the phone until she has spoken to one of us, nor does she sign anything without one of us reading it.

    All she recalls ever happening was a phone call months ago from this company would she like them to reclaim PPI.

    So does the company have to have a signed agreement? not just a verbal contract over the phone?

    It seems odd that a bank would be even allowed to give out details toa third party without a signed authorisation from the primary account holder??

    Thanks
  • [Deleted User][Deleted User]
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    There will be a signed Letter of Authority (LOA).

    The Bank would not co-operate without one.

    The only aspect I can see as you able to challenge is the percentage fee the firm are charging. There is a cap of 25% (minus VAT) that CMCs can charge now.

    Be certain of your 50% figure before referring to the Ombudsman. Vat is not included in the cap.
  • dannyjebbdannyjebb Forumite
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    Hi that's interesting. I would have thought it odd that banks would give out details to a 3rd party with the threat of massive fines for breaching GDPR.

    The fees are as follows,

    gross compensation from lender £2531.17

    CMC fee £ 987.16
    VAT on fee £197.43
    Total fee = £1184.59

    So if the 25% rules stands,

    25% of 2531.17 is £632.79

    would this be before VAT is added?

    so the most they can charge is £759.35?

    Thanks
  • [Deleted User][Deleted User]
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    If their fee was agreed prior to the cap then the cap obviously does not apply. Otherwise the gross redress is subject to a 25% fee. The VAT is calculated and paid separately.
  • The_squirrellThe_squirrell Forumite
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    Of course, you can always play them at their own game. Your grandma can ask for a Subject Access Request which will show everything. Of course the bank will have received a signed "Letter of Authority" from her, although I have seen evidence on several of these....not being Libellous or anyything and I should be careful what I am saying.....where the signature MAY NOT match that of the actual customer. I am only saying!
    Anyway, get them to do some actual work for their fee and submit the SAR.
    They are yet another claims company in the North West ( Lepus Marketing), so tell your Grandma to be extra vigilant as her details will be out there somewhere.
    I work in Data Protection and spend my days dealing with CMC's. Only here trying to help!!
  • [Deleted User][Deleted User]
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    I have seen evidence on several of these....not being Libellous or anyything and I should be careful what I am saying.....where the signature MAY NOT match that of the actual customer. I am only saying!
    Don't give the OP false hope.
    Certainly there are scammers out there, but faking a Letter of Authority???
  • dannyjebbdannyjebb Forumite
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    Thanks, she is 90 but still has all her marbles and keeps every piece of paper she ever received!! Has drawers and drawers of papers in her back room from over 30 years ago!!!

    Anyway will first ask them for some proof of her signing. She has a very distinctive signature so would stand out a mile if it was forged. Surely this doesn't happen??

    Last question? does the 25% cap apply to all companies or just ones who are registered with the SRA?

    Thanks
  • [Deleted User][Deleted User]
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    dannyjebb wrote: »
    does the 25% cap apply to all companies or just ones who are registered with the SRA?

    The SRA??.....:question:
  • dannyjebbdannyjebb Forumite
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    Solicitors regulation authority?

    I just saw it on a post from the law society saying all firms registered with the SRa must abide by the new cap.

    Thanks
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