High settlement fees for PPI

Angela080904

Hello All,
I’m looking for a little help re the 50% fees the organisation dealing with my PPI claim are saying I will be deducted.
Probably being a silly billy but thought that fees in PPI claims had been capped at 20% however speaking to the company they said that only applied to initial dealings and that this 50% fee was due to further work, litigation, which has now resulted in a fair settlement.
Any advice would be really appreciated.
Thank you

[Deleted User]

They can only charge you the fees in the contract. If you agreed 50% before the 20% cap came in, then that's the amount you'll need to pay.

Check your contract.

Angela080904

Just double checked and contract was digitally signed May 2019, after the act came in to place so would this then mean I would be within my rights to say only 20% fees applicable?
Main problem is that they will receive the settlement and then issue me with my portion so no control at present.

brettcta

As they’ve said, the elevated fees are for additional claims (usually Plevin) which are done via a solicitors and not the CMC (and are therefore not subject to the cap on fees).

which CMC is it and which legal firm did the complaint for you?

Angela080904

The legal firm dealing with everything is HD Law, everything has been directly through them. 

sourcrates

Angela080904 said:

Just double checked and contract was digitally signed May 2019, after the act came in to place so would this then mean I would be within my rights to say only 20% fees applicable?
Main problem is that they will receive the settlement and then issue me with my portion so no control at present.

You would have benefitted greatly from taking advice from this site, prior to making a complaint.

Obviously that time has long since passed, but the most it would have cost you would have been 85p, for the stamp.

Can I just ask, and its a serious question, I really would like to hear your reasons why, you engaged the services of a claims management company, knowing how high their fee`s are, when you could have written a simple letter of complaint to your lender yourself ?

Angela080904

I had written to all of my lenders to enquire about PPI and every one of them claimed I had no PPI or just ignored my request for information hence I went down the route of using a claims management company.
I was also not told that the end fees would be 50% of my settlement otherwise I would most definitely not have continued down this route.
it seems however there is little I can do about this company taking the fees they want and giving me what’s left, difficult lesson to learn as every penny counts to me but lesson learned none the less. 

Dazed_and_C0nfused

If the fee is 50% you need to remember that it is usually 50% of what you are entitled to, not 50% of what is actually paid.

Tax is deducted form the statutory interest element of the PPI payout but the claims company may be entitled to 50% of the amount before this deduction.

Angela080904

Thank you but I’m not getting any interest paid, the settlement only covers the premiums I paid to the company so lawyers are taking 50% of that. 

brettcta

Yikes!    

Alpine_Star

The 20% fee cap came into effect for contracts signed after July 2018.

As a law firm, if HD Law are charging more than just 15% then you may be able to complain.

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