Red Star Invoice...

Boydie05

Good afternoon,
I have a number of questions if someone would be kind enough to help me out.
Firstly, I got a letter from Barclays a week ago saying that although my previous claim back in Sept 2017 had been declined that they had in fact made an error and I was due compensation (good news) they also said that as I'd used a claims complaint company initially (Red Star) that they would be informing them. Within a hour I had received an email invoice from Red Star. Now back in August 2017 I had contacted Red Star and requested to cancel their services, due to various reasons against the two claims that they were making against Barclays. I got an acknowledgement for both of theses claims (I have the correspondence) that they would be cancelled and also an invoice for £174 for their services. I didn't pay the invoices because with a week they had sent me another letter saying that my claims were closed as Barclays had informed them that no PPI had been paid. Two years later I get the letter from Barclays and also Red Star's invoice of 35% plus vat. I've spoken to the claims department and they have said that although my account had been closed this is a different claim! Two years a go I wasn't aware of this one! So, do they have a right to request payment? Also when I first made the claim my wife sent her details as well, so the correspondence was addressed to us both, since GDPR should they not only communicate to me, as this successful claim is against my personal bank account?
Any advice would be appreciated.

SonOf

with a week they had sent me another letter saying that my claims were closed as Barclays had informed them that no PPI had been paid.

Excellent. Your contract with the CMC ends when the CMC closes the case.

I've spoken to the claims department and they have said that although my account had been closed this is a different claim!

In which case they would require a new letter of authority to act.

So, do they have a right to request payment?

No.

Also when I first made the claim my wife sent her details as well, so the correspondence was addressed to us both, since GDPR should they not only communicate to me, as this successful claim is against my personal bank account?

No. If you employed them jointly then it's likely that they can correspond with you jointly.

Any advice would be appreciated.

Look at page 2 - additional client fees:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/342291/Claims-management-regulation-business-bulletin-Aug-2014.pdf

https://www.gov.uk/government/publications/claims-management-companies-plevin-guidance/plevin-guidance-for-claims-management-companies
section 3

Both the above are slightly different but they indicate that the original LOA ends when the service with the CMC ends, either by an original payment or rejection of the complaint.

We have seen many of these posts and we tell people the same thing and all those that have followed up after they did this have found the CMC backed down.

Reject their bill and make a formal complaint that
a) they closed the case and the contract ends when the close the case
b) they never obtained a new letter of authority
c) refer to the Aug 2014 claims management bulletin 23 that says "If a CMC seeks further fees from clients where the contract has concluded, this may be in breach of General Rule 1 which requires you to conduct your business with honesty and integrity. It may also be considered an act of fraud by false representation (Section 2, Fraud Act 2006). "

CMCs are no longer regulated by the ministry of justice but as of April this year, regulated by the FCA. That means you have access to the FOS if the CMC rejects your complaint. The FOS are upholding nearly have of all complaints referred to them against CMCs. That is actually higher than the current FOS PPI uphold rate.

Boydie05

Thank you for your informative reply.
I think my main issue is that although they gave me an account number each claim they made against different lenders also had a seperate reference number after my account number.

Their standard 'request to cancel' form only had my account number printed on it, not all the different individual reference numbers. The correspondance that I received back from them acknowledging my request to cancel and that the account had been closed does state Barclays but with two different references. Now they are saying that the successful claim is a different reference, so how was I might to know how many cases they had open. Would you suggest that I request to see the letter of authority for this particular case, or should I go along the lines that my request to cancel was for my account, which should include all open cases?


I've just noticed that the letter from the CMC telling me my claim had been upheld only has my account number on and not any other references. Not sure if that is important!


I've also just found some more information on some old emails. The two 'accounts closed' letters that I received were for two Barclays claims that initially showed PPI, but then Barclays informed us that nothing was due. Now I also have an email from the CMC stating that there was no PPI on any of my credit cards that they looked into including the one that has now been successful. With them stating that fact, do I assume those claims were also closed?



Thank you in advance for any feedback.

SonOf

I've also just found some more information on some old emails. The two 'accounts closed' letters that I received were for two Barclays claims that initially showed PPI, but then Barclays informed us that nothing was due. Now I also have an email from the CMC stating that there was no PPI on any of my credit cards that they looked into including the one that has now been successful. With them stating that fact, do I assume those claims were also closed?

Yes. Once the CMC gives you the outcome of "no PPI", then the contract ends.

If you are getting nowhere with them, then put in a complaint ASAP. Then go to the FOS if required.