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Allay Claims charging £10 for all automated correspondence - relative may be in a similar position

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Allay Claims charging £10 for all automated correspondence - relative may be in a similar position

edited 18 October 2019 at 9:30PM in Benefits & Tax Credits
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hfn910hfn910 Forumite
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edited 18 October 2019 at 9:30PM in Benefits & Tax Credits
This happened to a woman in a new Mirror article who signed up online with Allay claims without reading the small print and cancelled outside the cooling off period:

Unlike this woman, my relative has received a PPI refund and seems to have ignored Allay rather than cancelling. The online T&Cs state:

"4. If you terminate this agreement after the 14 day cooling off period and prior to an offer of redress, Allay reserves the right to make a reasonable cancellation charge that will reflect the work undertaken by Allay in pursuit of your claim. When a cancellation is requested, we will send you an itemised bill outlining the work Allay have carried out on your behalf. Charges will be calculated as follows:
• For substantiation and referral of Your Claim to the Third Party, we will charge you £60 (inclusive of VAT where applicable.
• For referral of Your Claim to the FOS, we will charge you £60 (inclusive of VAT where applicable).
• For any manual communication e.g. an outgoing or incoming call/letter/email to or from either You or the Third Party, we will charge you £40 (inclusive of VAT where applicable).
• For any automated communication e.g. automated update letters or text messages to you, we will charge you £10 (inclusive of VAT where applicable)."

My relative went through a different claims company to get their PPI. There is a demand for payment which s/he hasn't responded to. Can s/he avoid paying a massive cancellation fee if s//he just makes the requested payment late?

They received a welcome letter with Letters of Authority enclosed, and on the back of each page, there are Terms of Engagement, which don't contain the same clauses as the above online version about charges for correspondence.

The letter begins, "As you have already signed your electronic documents...", but my relative has not returned the Letter of Authority forms as they're still in the envelope, and I've seen threads about Allay telling people they'd signed up when they didn't think they had.

I am obviously hoping the cancellation charges will not apply to my relative.

Apologies if anything is unclear but I am in a state of panic.

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