MPI claim on joint mortgage, Claim company wants to invoice for whole settlement not

angiefuzmac

I had already put in claims for PPI that I knew I had, so when a PPI claims company (Your Money Back) kept badgering me, I thought I'd let them have a go (please forgive me Martin!). After 18 months out of the blue, I got a letter with a settlement payment on a mortgage I had myself, plus a joint mortgage with my husband - which is a larger settlement. I need to know if they are entitled to be paid for half of the joint settlement, or all of it. I am arguing that my husband doesn't have an agreement with them so should only be due what I owe them. The ombudsman formal complaint is a next step, who warned me that YMB might use debt collectors if I didn't pay what they want. Advice or legal argument gratefully accepted!

[Deleted User]

They're entitled to be paid for the whole settlement.  

You're correct that your husband doesn't have an agreement with them, which means you're responsible for the full payment.

The quicker you pay them, the less it will cost you.

dunstonh

 I need to know if they are entitled to be paid for half of the joint settlement, or all of it. 

They are entitled to bill against all of it.

 I am arguing that my husband doesn't have an agreement with them so should only be due what I owe them. 

He doesnt have to pay a penny as he didnt employ them.  You did.  You are responsible for the whole bill.

 The ombudsman formal complaint is a next step, who warned me that YMB might use debt collectors if I didn't pay what they want.

Based on known outcomes, the FOS will not side with you.  And they are right.  CMCs do tend to be very efficient at taking action against those trying to get out of paying.

brettcta

As above, for the joint one you’ll receive your half of the redress and will end up handing half of that over to the CMC

angiefuzmac

thanks - what do you mean by 'and will end up handing half of that over to the CMC' mean?

brettcta

Well as an example if you were to receive an offer of £5,000 (gross) for the mortgage redress, your half will be £2,500 but as you’ll be invoiced on the full £5,000, you’ll be giving the CMC £1,200 from your £2,500.

don’t forget they’ll also bill you on the gross amount so you have tax to take off that £2,500 too as well as the CMC’s £1,200

SpiderLegs

brettcta said:

Well as an example if you were to receive an offer of £5,000 (gross) for the mortgage redress, your half will be £2,500 but as you’ll be invoiced on the full £5,000, you’ll be giving the CMC £1,200 from your £2,500.

don’t forget they’ll also bill you on the gross amount so you have tax to take off that £2,500 too as well as the CMC’s £1,200

Hi.
I’m just trying to work this out. Not sure I’ve got this right. Would it mean a basic rate taxpayer ends up with £800 and a higher rate taxpayer £300?

[Deleted User]

No.  The tax is applied to the statutory interest part of the redress, so you'd need to know that amount first.

SpiderLegs

Deleted_User said:

No.  The tax is applied to the statutory interest part of the redress, so you'd need to know that amount first.

Ah yes of course. Forgot it was only on the interest element.

angiefuzmac

Thanks - I don't understand all that. But on fear of debt collectors and having had 3 nights with only 4hrs sleep each night stressing about it, as it seems there is no redress, I'm just going to have to pay what they are asking for. 

brettcta

If there’s no redress then you’re golden, you won’t have to pay them a penny as they operate on a no win, no fee basis. It sounds like you have had an offer so you’d just pay them out of that.

(though if there is redress but that’s swallowed up by previous debts or bankruptcy then you may end up having to pay them but worry about that only if you need to)