Question of the week: Should I use a reclaiming claims handling company?

Former_MSE_Wendy · 23 March 2009 at 1:03PM

Q. What do you think of these Claim Service Companies that are now surfacing with regards to reclaiming bank charges fees? Is it worth it? Laurelle, by e-mail.

Martin’s Answer: We’ve seen an explosion of claims companies since bank charges started, initially I was scathing, but over the years I’ve softened a touch.

With most reclaims, it's pointless for anyone who’s literate with web acess to pay. Most Bank Charges, Loan Insurance (PPI), Mortgage Fees reclaims are in that category, as these links take you through guides with easy free pre-drafted template letters. Yet for the financially phobic, if you’d never do it yourself, then paying someone's better than not reclaiming at all.

Then there are certain areas, eg PPI reclaims which the Ombudsman can’t adjudicate on, where a good claims handler works as it's a complex technical fight needing lawyers not templates.

NOTE - if you've come from the weekly email to read this, where we have said "eg PPI reclaims which the Ombudsman can’t adjudicate on" simply means those not regulated by the FOS (which applies to a few lenders before 2005). The vast majority the FOS can help with so please contact them if you'd like help with your case.

Yet there are certain areas, , where a good claims handler works as it's a complex technical fight needing lawyers not templates

Yet the scary trend is for the growth of claims handing companies touting things like “pay us £400 up front”, for a raft of reclaim types. NEVER use any of those companies, DO NOT pay up front.

If you can't do it yourself, try a no-win no-fee company that charges a MAX. 25% of your winnings. For any decent company that should be enough, no matter what the reclaim.

Click reply to discuss this below

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natweststaffmember · 25 March 2009 at 7:49AM

Not sure I entirely agree with you Martin with your view. I do about the £400 charge upfront but we may be seeing CMC's charge people on hardship claims where a partial payout has been made. In fact, one CMC has tried to charge someone on MSE for work that they did not do when the bank decided to repay charges from another account into the one the CMC were looking at. Furthermore, there is nothing from the MOJ that compels the company to update the claimant as banks' have to with the OFT test case, leaving people none the wiser on what is happening. When claimants do become more aware of the fact that they can do it themselves, the previous "no win no fee" outfit will charge even though the work they may have done is SAR plus 1 letter and the bank putting things on hold.
They are good if the case is easy which PPI is no getting, but with bank charges cases you might as well have not bothered and if they charge 25% that is way too much imho.

MSE_Martin · 25 March 2009 at 10:35AM

natweststaffmember wrote: »

Not sure I entirely agree with you Martin with your view. I do about the £400 charge upfront but we may be seeing CMC's charge people on hardship claims where a partial payout has been made. In fact, one CMC has tried to charge someone on MSE for work that they did not do when the bank decided to repay charges from another account into the one the CMC were looking at. Furthermore, there is nothing from the MOJ that compels the company to update the claimant as banks' have to with the OFT test case, leaving people none the wiser on what is happening. When claimants do become more aware of the fact that they can do it themselves, the previous "no win no fee" outfit will charge even though the work they may have done is SAR plus 1 letter and the bank putting things on hold.
They are good if the case is easy which PPI is no getting, but with bank charges cases you might as well have not bothered and if they charge 25% that is way too much imho.

I think we do agree in the main. I do not think people should use claims handling companies, yet I have met people who simply are too scared to do this alone. We hear perhaps 5% of our template letters are sent without people filling in the details - they just print and send the letter as is.

As I say most literate people with web access are fine. Yet for those who lack the literacy or even mental capacity (meant in the correct sense) to do it themselves need to resort to somewhere.

Martin

Turboman · 25 March 2009 at 12:26PM

see here

http://forums.moneysavingexpert.com/showpost.html?p=20006005&postcount=2507

Question of the week: Should I use a reclaiming claims handling company?

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