CMC Charges 35%
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Kasha
Posts: 64 Forumite
First of all I am sorry if this is in the wrong place but I need advice. I used a claims company last year to claim back PPI for store cards etc I have just been awarded gross redress amount of £616.44 minus tax of £66.50 so I am receiving £549.94.
Claimeazy want 35% of the Gross amount £215.05 plus vat of £43.01 total £258.06.
Firstly new rules came into force in April 2018 to cap CMC charges at 20% I cannot remember if I first went to them before April do I have any argument with this?
secondly surely if they can get away with charging 35% shouldn't that be on the money I am actually getting back and not the gross amount?
I am not savvy with this kind of thing (hence using a company in the first place) any advice will be really helpful. Thanks in advice.
Claimeazy want 35% of the Gross amount £215.05 plus vat of £43.01 total £258.06.
Firstly new rules came into force in April 2018 to cap CMC charges at 20% I cannot remember if I first went to them before April do I have any argument with this?
secondly surely if they can get away with charging 35% shouldn't that be on the money I am actually getting back and not the gross amount?
I am not savvy with this kind of thing (hence using a company in the first place) any advice will be really helpful. Thanks in advice.
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Comments
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If you signed up before the cap, then you owe them the amount you agreed to.
The 35% is on the gross amount, not after any taxes or offset of funds.0 -
Indeed 20% + VAT.new rules came into force in April 2018 to cap CMC charges at 20%0 -
minus tax of £66.50
Don't forget the interest received of £332 will be part of your taxable income and you may be eligible to get some or all of the tax refunded. Or in extreme circumstances you could owe an additional £82.0 -
Obviously, you'll need to ascertain when you actually first employed them. Prior to last April and they can charge whatever % you agreed to in the legally binding contract you signed. Post April and the % is capped as you say. Are you perhaps calculating the bill as 35% because of the VAT you will also have to pay?Firstly new rules came into force in April 2018 to cap CMC charges at 20% I cannot remember if I first went to them before April do I have any argument with this?
Again, you signed a legally binding contract in which you agreed to pay a % of the gross amount prior to tax.surely if they can get away with charging 35% shouldn't that be on the money I am actually getting back and not the gross amount?
Just realise that failure to pay the bill will result in you ending up in court..I am not savvy with this kind of thing0 -
Hi, I have looked into this further and they have told me I signed on 15th June 2018 so I pointed out that the law changed in April 2018 so they should not be charging me more than 20% to which they said no we changed our systems in July 2018 they say that is when the law changed. As far as I can make out on google there was an INTRIM law passed in April to come onto effect in July. So I am still confused as to my rights? I found this on Google which would suggest I dont owe them 35%
The new rules will come into effect on 1 April 2018. All CMCs offering financial claims services in England and Wales are required to adhere to these rules as a condition of authorisation in accordance with Regulation 12(5) of the Compensation (Claims Management Services) Regulations 2006. Failure to adhere to the rules would be subject to enforcement action.
Does anyone know for sure when the law changed? or when it became illegal for CMCs to charge 35%. thanks0
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