Claims management company (CMC) complaints - ask the ombudsman your question

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  • Great Thank you very much!
  • H&C
    H&C Posts: 8 Forumite
    dunstonh wrote: »
    It is a shame that the LO is soft touch and doesnt work in the same way as the FOS (who look at fairness of £25 fees whereas CMCs can get tens of thousands of pounds without a blink of an eye).

    It is assumed that for CMCs their ombudsman scheme will be changing from LeO to the FOS in 2019. So with the Limitation Act 1980 giving consumers 6 years from when the contract was signed with the CMC to claim for compensation, consumers may be better off waiting until 2019 to make their claim against the CMC. However BE WARNED, firstly that the legislation hasn't yet gone through Parliament, secondly that the CMC may have gone into liquidation by 2019 and lastly that the Financial Services Compensation Scheme (FSCS) would not cover CMC activity.
  • I began a claim in September 2016 with Action Direct. At first I was being called by them every day sometimes more than once a day and receiving a constant stream of letters and forms to fill in. Different people would ask me to do the same think over and over I felt like I was being bombarded! Then it all went quiet and I heard nothing until 12 months later in September 2017 the calls and letters started again, by which time I was fed up with the whole thing and wanted it all to just stop. Obviously nothing was going to come of it so I told them I'd had enough and didn't want to continue. Now they are saying I have to pay charges for cancelling of £85 for every hour they have worked on my case. Can this be correct? or are they just trying to get some money back from me because there is no claim to be made from my banks? I am now very worried. I would be grateful of any advice.
  • dunstonh
    dunstonh Posts: 116,044
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    by which time I was fed up with the whole thing and wanted it all to just stop.

    If you are with BT, they have an excellent, free of charge, service called BT call blocker. They auto block known scam/spam callers and you can add your own blacklist (usually by dialling 1572 after receiving the scam/spam call - that adds them to the blacklist). Being on TPS cut the number of calls down a bit. BT call blocker means I go from getting 2-3 calls a day (despite TPS) to less than 1 a fortnight now.
    or are they just trying to get some money back from me because there is no claim to be made from my banks?

    We dont know what service they provided you or what terms you agreed. Can you let us know?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Legal_Ombudsman
    Legal_Ombudsman Posts: 79 Organisation Representative
    I began a claim in September 2016 with Action Direct. At first I was being called by them every day sometimes more than once a day and receiving a constant stream of letters and forms to fill in. Different people would ask me to do the same think over and over I felt like I was being bombarded! Then it all went quiet and I heard nothing until 12 months later in September 2017 the calls and letters started again, by which time I was fed up with the whole thing and wanted it all to just stop. Obviously nothing was going to come of it so I told them I'd had enough and didn't want to continue. Now they are saying I have to pay charges for cancelling of £85 for every hour they have worked on my case. Can this be correct? or are they just trying to get some money back from me because there is no claim to be made from my banks? I am now very worried. I would be grateful of any advice.


    The issues you raise will be very dependent on the contract you have signed with your claims management company. If you want to give us a call we would be happy to discuss this in more detail and advise you on raising a complaint. Please call us on 0300 555 0333.
    Official Company Representative
    I am the official organisation representative of the Legal Ombudsman service. MSE has given permission for me to post. You can see my name on the organisations with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com"
  • Hi I have a quick question. I used a CMC to get ppi money back in 2015. This was from the Clydesdale bank. I was paid redress in 2015 and paid the fees to the CMC. My question is I have applied again to the Clydesdale bank myself 2 weeks ago and my complaint has been upheld. Do I have to pay the original CMC again or Can I keep all the money. I haven’t had any letters demanding fees etc but the bank sent them a copy of the letter. I phoned the CMC and asked if I had any outstanding claims with them and they said no. I also phoned the Clydesdale bank to tell them the CMC isn’t involved in this new claim and they said they would remove them from fire correspondence.
  • The new complaint was for other accounts that weren’t investigated in the original complaint.
  • dunstonh
    dunstonh Posts: 116,044
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    Do I have to pay the original CMC again or Can I keep all the money.

    No. it is all yours to keep. See page 2 - additional client fees:
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/342291/Claims-management-regulation-business-bulletin-Aug-2014.pdf
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for your help just grateful I don’t need to pay them anymore money.
  • where do i start i went to this lot as i received a email and with only not long being finished paying into a trust deed in Scotland to clear all my debt i thought it would be nice to then get something back but after they made the claim to my bank on my behalf and not once asking me if i had been in a trust deed. the bank sent me a letter saying my claim was successful but i wouldn't be receiving anything as i still had debt with the bank even after my trust deed was finished. so i contacted HYC to explain this and they said but you have been successful so you need to pay £1606 to them asap. is this right if they never asked me about trust deed can they force this
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