Friend signed a no win no fee agreement for a mortgage claim, help needed.

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DebtFreeDuo
DebtFreeDuo Posts: 1,021 Forumite
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in Reclaim mortgage fees, council tax, etc
I was talking to a friend who mentioned they filled in something online for a mortgage overpayment claim with a company called Mortgage Audit Bureau. Did a little research and I really don't like the sound of any of it. I've asked my friend how far along they are with it all and that it sounds like a scam, they signed the no win no fee agreement back in June so it is well past the 14 days they give for cancellation.

They have received what seems to be a standard letter, 'you may have a positive result' type. Is there any way out of this now without them being chased for a payment?

I did notice that they agreement is in joint names 'Mrs (first name 1) and (first name 2) (last name 1) and (last name 2)' but has only been signed by one person.

I appreciate any help, I really want to get them out of this mess after doing some research. I have discovered that if they have been overcharged for anything then the mortgage company would be in touch to inform them or if they feel they have been overcharged then they can simply write to their lenders themselves.

TIA
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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I don't see how anyone can know without seeing the contract but most likely next step is the company will send a letter to the effect of "it seems you may have a substantial sum to claim send £X to proceed" at which point they shouldn't do anything and they will eventually drop it.
    But if your friend is naive enough to have started this he's probably not going to thank you for interfering and won't believe you
    I'd tell him most of those schemes are as close to scams as you can get and leave it at that amd let him discover he's been a twit.
  • DebtFreeDuo
    DebtFreeDuo Posts: 1,021 Forumite
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    AnotherJoe wrote: »
    I don't see how anyone can know without seeing the contract but most likely next step is the company will send a letter to the effect of "it seems you may have a substantial sum to claim send £X to proceed" at which point they shouldn't do anything and they will eventually drop it.
    But if your friend is naive enough to have started this he's probably not going to thank you for interfering and won't believe you
    I'd tell him most of those schemes are as close to scams as you can get and leave it at that amd let him discover he's been a twit.

    Thank you for your response.

    The latest letter has said they will commence working under the agreement and that they will now write to the lender setting out the basis for the case. They have also said they have set up an ATE that will cost them over £2000 if the case is won!

    I hope they do receive a letter roughly as you suggest as then at least (I hope) they won't have to then give them money if they don't want them to go ahead. I have forwarded them some of the research I came across and hope that it has helped them to see things a little more clearly.
    Change the way you see things and the things you see will change
  • Nasqueron
    Nasqueron Posts: 8,818 Forumite
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    30% including VAT charge of any refund



    Some rubbish about making sure you weren't incorrectly charged fees and correct rates applied if you missed payments. AKA target those with a poor history of paying their bills and dangle the carrot of free money - they even admit you can do this yourself for free.



    Perhaps a market the PPI companies will move into to try and leach more money
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Is there anything in the contract that says that they will charge a fee if theres no result? I know you said no win no fee but some of these deals may well have a "service fee" or similar buried in the small print.
    Can he cancel with no fee or is it too late because if he does will they charge him on the basis they've already done some work? (small print again)

    This is why he may not thank you if he gets scared and pulls out without being sure of the details.
  • DebtFreeDuo
    DebtFreeDuo Posts: 1,021 Forumite
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    AnotherJoe wrote: »
    Is there anything in the contract that says that they will charge a fee if theres no result? I know you said no win no fee but some of these deals may well have a "service fee" or similar buried in the small print.
    Can he cancel with no fee or is it too late because if he does will they charge him on the basis they've already done some work? (small print again)

    This is why he may not thank you if he gets scared and pulls out without being sure of the details.

    It is well past the 14 day cancellation period so they would now be charged.

    From what I could see there was no charge if there was no result. It was mentioned that you should have some form of insurance to cover the lender making a counter-claim, is this what the ATE would cover?

    There was something received with the last letter to be signed, it stated that 'i, x, authorise and release you from your duty to keep information on my mortgage overpayment claim against x so you can disclose information about the case progress to the funder, insurer and your agents who are helping you...' if this isn't returned can they progress any further?

    Sorry for all the questions, I don't know a great deal about it all and neither does my friend, they have gone in blindly believing that they will just get some money back from charges made when they were in a very difficult situation.
    Change the way you see things and the things you see will change
  • eddddy
    eddddy Posts: 16,440 Forumite
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    Here are their current T&Cs - presumably these are the same or similar to the ones your frend agreed to:
    https://www.mortgageauditbureau.co.uk/Home/Terms

    I guess the key things to note are:
    Should you wish to cancel a claim after the statutory 14 day cooling off period, then this will be subject to our administration costs which are based on an hourly fee, these fees are outlined in our solicitors & rsquo; paperwork.

    So your friend should avoid cancelling, and let things just run their course.

    Also, your friend needs to make sure they do this:
    Your Obligations
    You must promptly provide to us, at no cost to us, copies of any documents in your possession, and with any other information, that we ask for at any time.

    You must make full, frank and prompt disclosure to us of all facts that you believe are relevant to your claims(s), and not deliberately mislead us at any time.We rely on the information and documents provided to us by you as being true, accurate and completed to the best of your knowledge.

    If they don't, they'll be in breach of contract, and they'll probably be chased for damages.

    DebtFreeDuo wrote: »
    I did notice that they agreement is in joint names 'Mrs (first name 1) and (first name 2) (last name 1) and (last name 2)' but has only been signed by one person.

    This probably just means that one person will be liable for paying fees / damages instead of 2 people.
  • eddddy
    eddddy Posts: 16,440 Forumite
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    DebtFreeDuo wrote: »
    There was something received with the last letter to be signed, it stated that 'i, x, authorise and release you from your duty to keep information on my mortgage overpayment claim against x so you can disclose information about the case progress to the funder, insurer and your agents who are helping you...' if this isn't returned can they progress any further?

    .... and as I mention above, if that isn't signed returned promptly, it would probably put your friend in breach of contact. And a claim for damages might follow.
  • -taff
    -taff Posts: 14,501 Forumite
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    Read this
    https://forums.moneysavingexpert.com/showthread.php?t=5786456&highlight=mortgage+audit+bureau
    Shampoo? No thanks, I'll have real poo...
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    -taff wrote: »
    Read this
    https://forums.moneysavingexpert.com/showthread.php?t=5786456&highlight=mortgage+audit+bureau
    An awful lot of SPAM messages in that thread.
  • Nasqueron
    Nasqueron Posts: 8,818 Forumite
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    Valid though especially Dunston's post confirming there is no issue with charges / fees and the lack of success shows it's a waste of time pursuing this
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