CMC company trying to claim payment on plevin award

berryman898 · 9 December 2017 at 3:05PM

I'll give you a little background first. Two years ago I used a cmc to make a claim for ppi refund that was successful. Since then I have had no contact with them. About 2 months ago I received a letter direct from the bank. Telling me that i could make a claim against them. (Plevin ruling). This i did directly with the bank who made an award and sent me a check. Now the claims company are asking for a percentage of this even though they were not involved. I believe the Plevin ruling only came into effect on 29.08.17.
I have sent an email of complaint to them. It seems extremely unfair that they can attempt to gain money for a claim they were not involved in. Apparently Lloyds named them on a document and this is how they new i had made a claim. Any thoughts?.

dunstonh · 9 December 2017 at 5:05PM

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/342291/Claims-management-regulation-business-bulletin-Aug-2014.pdf

see page 2 - additional client fees.

The ministry of justice suggested that a CMC requesting additional fees after the original complaint was closed could be fraud and that CMCs shouldnt do it.

The fact that the bank wrote to them based on the original complaint is irrelevent.

Also, you said the complaint was successful. However, the plevin issue only applied to rejected complaints. Not successful ones.

ginyvonne · 10 December 2017 at 1:58PM

Sorry if this is slightly off-post, but, Can dmc's legally take the full claim and plough it back into your payment plan then? This happened to us and I have always wondered if they were allowed to do it, we never saw a penny as they put it straight against the plan?

dunstonh · 10 December 2017 at 2:03PM

Sorry if this is slightly off-post,

This thread is about claims management companies (CMCs). Not debt management companies.

Can dmc's legally take the full claim and plough it back into your payment plan then?

Yes. Remember you failed to pay the debt which in reality means you didnt pay the PPI as it is wrapped up in the debt. So, there is no logical reason for you to have the redress as it would, in effect, be refunding you something you never paid.

The rules allow what happened to you.

berryman898 · 12 December 2017 at 7:18PM

An update to the above thread. I have since replied to the Cmc company with an email of complaint, stating that I wish the matter to be refered to the ombudsman. This is the reply: I will try to clarify the fee below. You are correct in both cases,the FCA ruling on the Susan Plevin case only came in on 29.08.17 and that you last dealt with us in 2015. We are looking for the fee for the following reasons.
We had looked into your PPI in 2015.Due to the ruling was looked into again by the lender and they had overcharged commissions.
The extra payment was all part of the same claim. Also the lender has kept us informed of the extra payment as we had originally started the claim. ( I have omitted numbers and figures)
My guess is this changes nothing and I should continue on. Any advice gratefully received.
Many thanks!

-taff · 13 December 2017 at 11:58AM

So it sounds like the extra payemtn you received would have originally been related to the successful complaint, not from a Plevin redress, in which case they are entitled to their cut from it.

BUT....I would check with the bank that the money they paidyou recently was related to the original complaint, in that had failed to pay you the full amount somehow, or whether it was from the Plevin complaint.

If the latter, then you keep it. However, I have not heard of anyone being paid a successful PPI complaint AND a Plevin complaint.

dunstonh · 13 December 2017 at 1:14PM

The CMC put in a complaint about mis-sale. The mis-sale complaint was rejected. Your contract ended at that point unless the CMC told you to go to the FOS (and if you did, it ended after the FOS decision).

The Plevin issue is a new one that is not related to misselling of the product. The CMC is trying it on.

Mrs_Moir77 · 20 March 2018 at 2:37PM

I am having a similar issue. I received a letter from the card provider at the weekend. I had no knowledge that this was going through. neither the bank or the cmc contacted me about it, the CM are now demanding 30% saying it was the original claim that brought this about. they had closed the claim in 2015 after unsuccessful PPI claim was rejected by FOS. they now say they the contract states they are entitled to the money. this is new claim reference number on their records. my original claim is shown as suspended, they have activated a new one, they also recently sent a new authorisation form (we have not signed) as they wanted us to try for bank account charges.

Having checked online at on the government guidelines for CMC and Pelvin should they not have contacted me before they went a head with the claim or should the bank have contacted me?

dunstonh · 20 March 2018 at 3:15PM

This is an older thread. More recent threads have contained updated information.

CMCs contracts are deemed over 6 months after the rejection or FOS decision unless they are continuing a process that they have told you will take longer.

Section 3 on the Govt site about CMCs and Plevin
https://www.gov.uk/government/publications/claims-management-companies-plevin-guidance/plevin-guidance-for-claims-management-companies

Mrs_Moir77 · 22 March 2018 at 11:03AM

thank you - i will look at the other threads. i have submitted a complaint with the link you provided - i did that on monday and as yet have heard nothing - other than to receive an invoice for payment in 14 days.

Confused_person · 3 May 2018 at 10:03PM

Mrs moir77 - may I ask, what’s happened since? I find my self in the exactly the same situation you were in. Any help would be gratefully received

CMC company trying to claim payment on plevin award

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