Can I Terminate My Agreement with Claim Management Company?

CWM1

I signed up with a company (Chase Monro) who were advertising on X for mis sold car finance in January 2024, long before MSE advised "not" to use such a company. I did try and cancel a while back and told I would be liable for their costs if I did so.

They estimated the value of my claim at £44K (gross £54K) so their 25% fee was capped at £10K.

In the last 6 months they have disappeared. Phone calls/emails go unanswered and they have issued no update since the Supreme Court/FCA ruling/announcement over the weekend.

Martin seemed to indicate that any redress scheme may be automatic, and not even require a claim, but would be interested in your advice as I can't be the only customer who signed up before the latest update from the FCA.

Nasqueron

Obvious scam is obvious

55k sounds like a refund of the entire finance package which was never going to happen, if it sounds too good to be true...

jaybeetoo

Always, read the contract before you agree to anything.  Most of these claims management companies will not let you cancel, once you’ve signed up.  They will say they’ve already done work on your behalf.  Even if you get a payment automatically that doesn’t involve the claims management company, you will still probably be liable to pay their fees.  It is very rarely a good idea to use a claims management company for anything.  You can usually do what they do yourself for free. A painful and possibly expensive lesson for you I’m afraid.

MyRealNameToo

CWM1 said:

I signed up with a company (Chase Monro) who were advertising on X for mis sold car finance in January 2024, long before MSE advised "not" to use such a company. I did try and cancel a while back and told I would be liable for their costs if I did so.

They estimated the value of my claim at £44K (gross £54K) so their 25% fee was capped at £10K.

In the last 6 months they have disappeared. Phone calls/emails go unanswered and they have issued no update since the Supreme Court/FCA ruling/announcement over the weekend.

Martin seemed to indicate that any redress scheme may be automatic, and not even require a claim, but would be interested in your advice as I can't be the only customer who signed up before the latest update from the FCA.

And there will be more that sign up after it... some people just like using claims management companies for some reason. 

They are correct, if you cancel you are either liable for their costs or have to pay them their share. No win, no fee doesnt mean you can have them do hours of work and then just change your mind and not pay them. If they have truly "disappeared" then maybe they'll never chase you for it but nothing on companies house to suggest they have gone bust (assuming it was Chase Monro Claims Ltd)

dunstonh

I signed up with a company (Chase Monro) who were advertising on X for mis sold car finance in January 2024, long before MSE advised "not" to use such a company. 

MSE has been saying not to use claims companies for many years. As have the forums on MSE.
MSE and most other bodies, including the FOS, have always said not to use claims companies on most things.

The regulated complaints process has been in existence for 37 years and has never needed third parties to be involved. It has always been free-of-charge to use.

They estimated the value of my claim at £44K (gross £54K) so their 25% fee was capped at £10K.

ROFL.  Unless you bought a Bugatti on finance, that was just pie in the sky.

Martin seemed to indicate that any redress scheme may be automatic, and not even require a claim, but would be interested in your advice as I can't be the only customer who signed up before the latest update from the FCA.

As we have been saying on these forums for several years now, you should wait until the FCA report.  The FCA is currently consulting on a section 404 redress scheme and whether it will be auto opt-in or whether it will require an opt in.

It is hoped that the FCA will cancel all the complaints made so far via the regulated complaints process and divert them to the redress scheme.  That could break the link between CMC and redress, as the claims company would have no input in the redress scheme.       However, we will have to wait and see when the report is published.

Grey_Critic

I think they should get an award for the waffle on their website https://chasemonroclaims.co.uk/