Claims management company (CMC) complaints - ask the ombudsman your question
Comments
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If the rejection went straight to Plevin then the CMC can bill you.
If the rejection led to the case put on hold pending the FCA decision on Plevin then the CMC can bill you.
If the rejection was from before plevin was an issue, then the CMC should not bill you unless you entered into a new contract with them .
I’m sorry if this appears to be a silly question, but how do I know?
As far as we were concerned, the case was closed and nothing further was agreed. We received no further information or a new contract from the CMC regarding this.0 -
I!!!8217;m sorry if this appears to be a silly question, but how do I know?
Mainly by the gap between the rejection and the bank contacting you about Plevin.
If it was more than 6 months gap from rejection (or the FOS outcome) then unless the CMC told you to wait or gave you an instruction then their service ended at that point.
When did the bank reject you?
When did they contact you about Plevin?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.0 -
Mainly by the gap between the rejection and the bank contacting you about Plevin.
If it was more than 6 months gap from rejection (or the FOS outcome) then unless the CMC told you to wait or gave you an instruction then their service ended at that point.
When did the bank reject you?
When did they contact you about Plevin?
Letter dated 28 February 2018 from the Halifax states “We wrote to you on 11 May about your PPI policy. Following the publication of the FCAs new rules and guidance, I can now provide our final decision on your complaint. This letter, together with our previous dated 11 May 2017, form our full final decision.”
On the CMC portal it states in relation to this claim “As advised the Financial Ombudsman Service (FOS) upheld the complaint in favour of the lender and you only had a limited amount of time to be able to appeal the decision. As we have not heard from you we have assumed that you have accepted the decision and have therefore closed this claim.”
We received no information or instruction from the CMC until this letter followed by their phone call arrived out of the blue last month.0 -
Letter dated 28 February 2018 from the Halifax states !!!8220;We wrote to you on 11 May about your PPI policy. Following the publication of the FCAs new rules and guidance, I can now provide our final decision on your complaint. This letter, together with our previous dated 11 May 2017, form our full final decision.!!!8221;
Those dates indicate your case was on hold pending the FCA consultation. So, the CMC "could" be entitled to be paid on that basis if they advised you of why it was on hold and that you should wait.On the CMC portal it states in relation to this claim !!!8220;As advised the Financial Ombudsman Service (FOS) upheld the complaint in favour of the lender and you only had a limited amount of time to be able to appeal the decision. As we have not heard from you we have assumed that you have accepted the decision and have therefore closed this claim.!!!8221;
However.....
take a screen shot of that as that clearly states that they have ended their service. Not a hint of the plevin ruling. So, their service was over.
https://www.gov.uk/government/publications/claims-management-companies-plevin-guidance/plevin-guidance-for-claims-management-companies
Tell them that under section 3, of The Plevin guidance for claims management companies published by the Government on 18th August 2017, it states that the claims company should ensure that they have sought clients instructions to act on their behalf in relation to the complaint on Plevin grounds. And that they should have requested a new Letter of Authority as it was more than 6 months ago and they confirmed their service was over. As they never obtained your consent and no new letter of authority was given, no contract exists and therefore no payment is due.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.0 -
Those dates indicate your case was on hold pending the FCA consultation. So, the CMC "could" be entitled to be paid on that basis if they advised you of why it was on hold and that you should wait.
However.....
take a screen shot of that as that clearly states that they have ended their service. Not a hint of the plevin ruling. So, their service was over.
Tell them that under section 3, of The Plevin guidance for claims management companies published by the Government on 18th August 2017, it states that the claims company should ensure that they have sought clients instructions to act on their behalf in relation to the complaint on Plevin grounds. And that they should have requested a new Letter of Authority as it was more than 6 months ago and they confirmed their service was over. As they never obtained your consent and no new letter of authority was given, no contract exists and therefore no payment is due.
Wow, thank you for taking the time to explain this to me in simple terms. I shall certainly pursue this with the CMC armed with this information. Thank you once again, I’m extremely grateful.0 -
Moneyineptitude wrote: »No. You owe them nothing from a Plevin payout.
If your complaint gets nowhere and they continue to press you for payment, refer the complaint to the Legal Ombudsman.
Remember that you must allow the firm eight weeks to consider your complaint.
Thanks for your reply. I've kept the difference aside just in case. I've not had any kind of acknowledgement from the claim 4 you as of yet.0 -
I am going through the same thing. The CMC are claiming we owe them 30% of the payout from Pelvin - - even though their website shows the PPI was closed. They have since opened a new case, which i knew nothing about. they claim that their T&C entitle them if a there is a change of law.
they have rejected my complaint - even though I have quoted the information about needing a new POA etc....but they have offered to reduce their stake to 15% But I have to pay this by the 3 May.
I am going to lodge a complaint with the ombusmand, but I am wondering whether to pay the reduced amount in the meantime and claim it back. I am worried they will hit me fees for late payment whilst my complaint is looked at0 -
Mrs_Moir77 wrote: »I am going through the same thing. The CMC are claiming we owe them 30% of the payout from Pelvin - - even though their website shows the PPI was closed. They have since opened a new case, which i knew nothing about. they claim that their T&C entitle them if a there is a change of law.
they have rejected my complaint - even though I have quoted the information about needing a new POA etc....but they have offered to reduce their stake to 15% But I have to pay this by the 3 May.
I am going to lodge a complaint with the ombusmand, but I am wondering whether to pay the reduced amount in the meantime and claim it back. I am worried they will hit me fees for late payment whilst my complaint is looked at
[FONT="]You can complain to your CMC that, as they have had no involvement in the Plevin refund, they are not entitled to their fee. The usual 8 weeks then apply, before you can bring your complaint to us.
If the CMC issue court proceedings against you for recovery of the fees, you may want to consider paying these under duress, and on the basis that it doesn’t resolve your complaint OR you may want to issue a defence and counterclaim on the basis that the CMC is not entitled to their fees.
It would all depend on what the CMC was instructed to do and what contract was signed. We’d be happy to discuss this in more details - you can call us on 0300 555 0333 or email [EMAIL="cmc@legalombudsman.org.uk"]cmc@legalombudsman.org.uk[/EMAIL].[/FONT]“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"0 -
So although they have rejected my initial complaint (within 4 weeks of it being submitted) I could go back stating that they had nothing to do with the claim as it was Pelvin. They are stating in their response that this was linked to the original claim, even though I have heard nothing from them about this for over 18 months when I thought the case was closed.0
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Mrs_Moir77 wrote: »So although they have rejected my initial complaint (within 4 weeks of it being submitted) I could go back stating that they had nothing to do with the claim as it was Pelvin. They are stating in their response that this was linked to the original claim, even though I have heard nothing from them about this for over 18 months when I thought the case was closed.
take a screen shot of the bit that says your complaint against the financial company was closed as that clearly states that they have ended their service. Not a hint of the plevin ruling. So, their service was over.
https://www.gov.uk/government/publications/claims-management-companies-plevin-guidance/plevin-guidance-for-claims-management-companies
Tell them that under section 3, of The Plevin guidance for claims management companies published by the Government on 18th August 2017, it states that the claims company should ensure that they have sought clients instructions to act on their behalf in relation to the complaint on Plevin grounds. And that they should have requested a new Letter of Authority as it was more than 6 months ago and they confirmed their service was over. As they never obtained your consent and no new letter of authority was given, no contract exists and therefore no payment is due.
Don't be afraid to state that should they decide to pursue the matter, you would take legal action against them on the basis of them being in breach of the rules set by their regulator. in August 2014, the Ministry Of Justice warned CMCs that billing people for money they are not entitled to could be considered fraud. So, here you have a CMC billing you for money they are not entitled to.
it seems that some CMCs are not aware of their own rules.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.0
This discussion has been closed.
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