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  • FIRST POST
    • Colin M Hollos
    • By Colin M Hollos 11th May 18, 10:41 AM
    • 4Posts
    • 0Thanks
    Colin M Hollos
    Undisclosed Commission
    • #1
    • 11th May 18, 10:41 AM
    Undisclosed Commission 11th May 18 at 10:41 AM
    Hi Everyone,
    I'm new to the site we hired a PPi company called Key Financial Claims to claim any ppi we were owed.
    Unfortunately we never got anything back and all the cases were closed, then out of the blue we were awarded a sum of money from Brittania, now the ppi company are wanting there commission of 179, we never instructed them to look into the undisclosed commission and never signed any paperwork/aggreement for them to do so.
    They sent a threatening letter saying if we didn't pay they would instruct a debt collecting company to chase the monies.
    Under duress we paid them the money and now instructed the Legal Ombudsman to investigate this company to get our monies back, they are saying undisclosed commission is separate from ppi and unless we have signed any documentation from key Financial Claims to claim the undisclosed commission then we shouldn't have had to pay them the 179.
    Can anyone help us in this matter.
    Regards
    Colin
Page 1
    • Moneyineptitude
    • By Moneyineptitude 11th May 18, 11:07 AM
    • 20,162 Posts
    • 11,102 Thanks
    Moneyineptitude
    • #2
    • 11th May 18, 11:07 AM
    • #2
    • 11th May 18, 11:07 AM
    You've already approached the Legal Ombudsman, but the time to do this was prior to actually paying the company. Now you are chasing a refund rather than just having the fee waived.

    There is little else anyone on this forum can do to help.
    • dunstonh
    • By dunstonh 11th May 18, 11:24 AM
    • 92,652 Posts
    • 59,974 Thanks
    dunstonh
    • #3
    • 11th May 18, 11:24 AM
    • #3
    • 11th May 18, 11:24 AM
    What the LO are saying is correct. It has turned into an FAQ on this site with people posting the same thing weekly.

    The rules for the CMC on Plevin cases are here:
    https://www.gov.uk/government/publications/claims-management-companies-plevin-guidance/plevin-guidance-for-claims-management-companies

    Section 3 is the key one. If you read that you will see that if the rejection was more than 6 months ago and they never made any reference to Plevin refunds then they have no contract with you.

    Its also worth nothing that in the August 2014 Claims Management regulation bulletin 23 issued by the Ministry of Justice it says the following:
    If a CMC seeks further fees from clients where the
    contract has concluded, this may be in breach of
    General Rule 1 which requires you to conduct your
    business with honesty and integrity. It may also be
    considered an act of fraud by false representation
    (Section 2, Fraud Act 2006).


    So, the CMC is potentially committing fraud by taking this money from you. I'm pleased the LO have told you that they shouldnt have to pay. The forum representative here from the LO has been more vague upto now saying you should pay under duress and then reclaim via the courts.

    What have the LO said to you? have they told the CMC to repay the money?
    Last edited by dunstonh; 11-05-2018 at 11:26 AM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Colin M Hollos
    • By Colin M Hollos 11th May 18, 3:10 PM
    • 4 Posts
    • 0 Thanks
    Colin M Hollos
    • #4
    • 11th May 18, 3:10 PM
    Undisclosed commission
    • #4
    • 11th May 18, 3:10 PM
    Hi thank you for your reply, it's in the hands of the LO but they have not allocated anyone to deal with my case as yet, I have called them today and they have told me it should be allocated to someone in a few weeks.

    I asked Britannia if there was any third party's involved with there payment to me, and they sent me a letter confirming this which I have sent to LO with other documentation.

    Key Financial Claims said they sent me a letter regarding the undisclosed commission, I never received a letter, and I didn't instruct them to try and claim monies back from Britannia, I certainly didn't sign any documentation either.

    The guy from KFC said once I received that letter I should have contacted them, very difficult when I never received one.
    Although they have shown me a letter since.

    Another person replied to me comments on here saying that paying the 179 makes it difficult to claim it back, I had no alternative because KFC sent me a threatening letter saying if we didn't pay they would instruct a company to reclaim the money.
    On the advice of the LO I paid the monies.
    I hope this explains this a little better.
    Kind Regards
    Colin
    • Colin M Hollos
    • By Colin M Hollos 11th May 18, 6:15 PM
    • 4 Posts
    • 0 Thanks
    Colin M Hollos
    • #5
    • 11th May 18, 6:15 PM
    Undisclosed commission
    • #5
    • 11th May 18, 6:15 PM
    Hi I take your comment onboard but I was in touch with LO befre I paid, and it was them that advised me to pay the fees, or I could have been blacklisted, or having a company chasing the fees another words would you want baliffs knocking on your door, I don't think so.
    Regards
    Colin
    • dunstonh
    • By dunstonh 11th May 18, 7:03 PM
    • 92,652 Posts
    • 59,974 Thanks
    dunstonh
    • #6
    • 11th May 18, 7:03 PM
    • #6
    • 11th May 18, 7:03 PM
    Hi I take your comment onboard but I was in touch with LO befre I paid, and it was them that advised me to pay the fees, or I could have been blacklisted, or having a company chasing the fees another words would you want baliffs knocking on your door, I don't think so.
    That is not how it works. And it is the sort of fear that leads to people paying money unnecessarily.

    The process is that you would refuse to pay giving your reasons and evidence. If the CMC refuses to accept that, then they can start a small claims process. Before the case is looked at, the court will ask you to send them any evidence you have and your side of the argument. The CMC will do the same on their submission and you are sent a copy of what the CMC have provided. After that, if it ends up in court (which is usually a judge by themselves in a small office type room - like an interview room wearing casual clothing). The judge looks at the evidence, asks questions and then will give a ruling. If you lose, you can pay there and then with nothing recorded against you. It does not affect your credit rating and bailiffs do not come calling.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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