The Financial Reclaims Co

Roz_Richmond · 30 June 2006 at 9:19AM

I would appreciate anyone’s opinion on where I stand with the following:

I signed up for the Financial Reclaims Co to submit a complaint to our insurance company regarding mis-selling an endowment policy to me. I completed a questionnaire on their website and signed a letter of authority which I do not have a copy of.

I agreed that if they won I would pay 25% of the compensation to them. This was on 30 December 2005.

After speaking to my financial adviser (which I should have done in the first place) he advised me not to use them because of the extortionate charge.

On 10th January, our insurance company wrote to us informing us that the Financial Reclaims Co had submitted a photocopy of a signed letter of authority on 4th January, and they were unable to accept it because it was not the original letter.

The insurance company included a new letter of authority for me to complete if I wished for them to deal with The Financial Reclaims Co during the investigation of our complaint. I did not complete this letter therefore I understood that the insurance company would not be dealing with them.

The insurance company also submitted a mortgage questionnaire for us to complete ourselves, which we did and returned to them. They received the completed questionnaire on 10th February.

The day after we received the letter from our insurance company (12 January), my husband rang the Financial Reclaims office and told them that we were pulling out. On 16th January the Reclaims Co sent us a letter informing us that if we were to pursue our claim further, they would still be entitled to 25%. I ignored this letter.

In March the insurance company wrote to us offering us compensation and an amount for cashing in the policy. We agreed to this and received a cheque by the end of March.

The whole amount has been used to pay some of our mortgage off, which has took us down to where we should have been if we had been paying a repayment mortgage.

On 19th June we received a letter from the Reclaims Co saying that they were delighted to have been able to secure compensation for us and submitted an invoice of nearly £2000.

After speaking to my financial adviser he advised me to write and ask for a copy of the agreement that I had signed. I sent this letter on 27th June. Have not heard back from them yet.

I then rang the insurance company and asked them how the Reclaims Co had found out that we had been compensated.

The insurance company informed me that the Reclaims Co had submitted the original letter of authority to them in April 2006.

I asked the insurance company why they accepted this letter and told the Reclaims Co what compensation I had received. They said that I should have rang them and told them that I was not dealing with the Reclaims Co.

I reminded them of the letter that I had received on 10 January asking me to sign a form if I wished for the Reclaims Co to deal with my complaint, which I did not sign, therefore I understood that the insurance company would not be dealing with them.

The insurance company told me that the Reclaims Co had no right to behave in this manner and should not be invoicing me.

I do not feel I should pay the full amount as they only submitted a copy of a letter and that is all they did. I would agree to offer them £500.

I was aware at the time that if they won our case I would pay them £2000 but, because I pulled out right at the beginning, and the insurance company had refused the copy of the letter of authority, then I feel the Reclaims Co has no right to the full amount.

Also, the Reclaims Co must know that the Insurance companies do not accept copies of letters of authorities so why do they submit them? I wonder! Beware, do not use the Reclaims Co, do it yourselves!

Anyone's opinion would be gratefully received.

Roz.

dunstonh · 30 June 2006 at 10:15AM

The insurance company informed me that the Reclaims Co had submitted the original letter of authority to them in April 2006.

I asked the insurance company why they accepted this letter and told the Reclaims Co what compensation I had received. They said that I should have rang them and told them that I was not dealing with the Reclaims Co.

The insurance company was right to accept that letter and not at fault here.

I reminded them of the letter that I had received on 10 January asking me to sign a form if I wished for the Reclaims Co to deal with my complaint, which I did not sign, therefore I understood that the insurance company would not be dealing with them.

The insurance company told me that the Reclaims Co had no right to behave in this manner and should not be invoicing me.

They are within their rights to do that if the agreement you signed allows them to.

I do not feel I should pay the full amount as they only submitted a copy of a letter and that is all they did. I would agree to offer them £500.

You agreed to pay them £2000 for a service. Most of these claims companies only send in a letter and thats it. You broke the contract after that point and they are saying that if you still proceeded, they would still need to be paid.

You need to read a copy of the contract on cancellation but my guess is that you would be liable to pay.

Also, the Reclaims Co must know that the Insurance companies do not accept copies of letters of authorities so why do they submit them? I wonder! Beware, do not use the Reclaims Co, do it yourselves!

Insurance companies do mostly accept copies of the authorities mostly. I havent sent an original in years and cannot recall the last time I was asked for an original. However, some insurance companies and claims departments do try and make it difficult for claims companies because there is a view in the industry that claims companies are unregulated sharks. Also, a number of them encourage fraudulent claims. So, the insurer was probably just being difficult on purpose.

Anyone's opinion would be gratefully received.

Personally, I think you are stuffed. The contract you signed is probably watertight and you cancelled after they had sent the letter in. As that is all that most of them do, you have in effect cancelled it after they have provided their service.

They will probably come after you for the payment and will take you through the small claims court to get it and probably be successful. Not what you want to hear but you did sign the contract after they had provided their service.

Roz_Richmond · 30 June 2006 at 10:22AM

Thanks for all your comments. I am not surprised with any of your replies. I expect I will have to pay the full amount but I need to see the agreement first all though I know it will probably be watertight. A hard lesson learnt on my behalf.

dunstonh · 30 June 2006 at 10:35AM

You could string it out with a few letters going backwards and forwards. Then finally wait to see if they take you to small claims court. If you get the claims pack through notifying you that they are going to take you to court, if you pay at that point, it wont go to court.

Remember, if they serve a claim on you, they have to come to your local court. You don't go to theirs. They may view the distance not worth it if they dont feel they have a strong enough case. Most will say they will take you to court etc but many wont. You can wait to see if they are serious or not first.

Don't give in yet.

defender_of_the_weak · 30 June 2006 at 4:18PM

Not so much of the unregulated shark please,

IFAs put a few figures into a computer and generate thousands in commission for less than an hours work, unfair criticism possibly, even when they have been regulated for over 18 years some of them behave more like Bolivian hill bandits than professionals.

For the original poster

Check the contract you signed, including any withdrawal fees. If it does go to court it could very possible be challenged under the Unfair Contract Terms legislation or ask them to justify their fee to the court given the minimal time and effort and the fact you withdrew.

25% plus VAT way too much money

Bernard_Coleslaw · 30 June 2006 at 10:59PM

defender_of_the_weak wrote:

Not so much of the unregulated shark please,

dunstonh was simply relaying the view of some people in the insurance industry, not necessarily his own view. However, whilst we're on this tack, are you defending the reported actions of the endowment claim company in this case?

IFAs put a few figures into a computer and generate thousands in commission for less than an hours work, unfair criticism possibly, even when they have been regulated for over 18 years some of them behave more like Bolivian hill bandits than professionals.

Was that really necessary?

Roz_Richmond · 3 July 2006 at 8:43AM

Hi all, Again thanks for all your comments. I have now received a copy of the letter of authority that my husband and I signed but nothing about if withdrawing I still pay the 25%. Need to go back to the Financial Reclaims and ask for the agreement where it words that I still have to pay 25% if I withdraw and claim myself - probably in the small writing somewhere. Am going on holiday for a week now and will write to them when I return, but don't hold your breath as I think I am just prolonging the agony!

Will keep everyone informed of my progress as it is really useful to hear other peoples opinions as you all seem far better informed than myself. Roz.

dunstonh · 3 July 2006 at 9:33AM

Your possible sticking point is the fact that you withdrew their services after they had already submitted the complaint. At least, that's how I have viewed your comments on this thread. Can you clarify if that was the case?

defender_of_the_weak · 3 July 2006 at 4:02PM

Bernard

It was merely a polite request to stop people referring to me as an unregulated shark as though I am some sort of chancer looking for vulnerable people.

Nope, don't defend the company at all, fees are way too high to start with and if all they have done is submit one letter and the OP withdrew I would have thought they might have had the good grace to let the matter drop or accept a reduced fee. Also if they made a hash re the authority letter its the claim company system that has failed to pick this up, not the client.

Was the comment re hill bandits warranted, let everyone else who has suffered at the hands of some of these advisers decide

HelpWhereIcan · 3 July 2006 at 5:15PM

defender_of_the_weak wrote:

Bernard

It was merely a polite request to stop people referring to me as an unregulated shark as though I am some sort of chancer looking for vulnerable people.

Nope, don't defend the company at all, fees are way too high to start with and if all they have done is submit one letter and the OP withdrew I would have thought they might have had the good grace to let the matter drop or accept a reduced fee. Also if they made a hash re the authority letter its the claim company system that has failed to pick this up, not the client.

I really, really need you to look over your last couple of posts and the indignation you show at some perceived sleight against you by dunstonh.

You obviously had a similar reaction to that of dunstonh and some of the other advisers when they are accused of similar in the posts of certain members regarding some subjects.

Is your industry regulated? No. So unregulated is a fair description.

Are there some 'bad apples' in your industry? Yes? Then the description 'sharks' must apply equally to those in your industry as it does to those in mine. I have had a major claim management company cold call me because my endowment was mis-sold - no fact find, I did not approach them, they just made that decision for me because I have a Prudential Endowment (don't get me started on where they go that info from!!).

You may be whiter than white, but your industry is not. You will just have to be grown up enough to accept the knocks that come with dealing with peoples' money rather than resorting to things like:

defender_of_the_weak wrote:

Was the comment re hill bandits warranted, let everyone else who has suffered at the hands of some of these advisers decide

Show you can take it as well as dish it!!

MortgageMamma · 3 July 2006 at 5:23PM

:rotfl: a shark fight, fantastic!!! :j

The Financial Reclaims Co

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free