Disputed Invoice with PPI claim Management Company

[Jackie66]

Hi I am wondering if anyone can help me with an issue that I have regarding an invoice that I have received from a Claim Management Company. Back in December, 2014 I instructed a Claim Company to proceed with a claim for mis-sold PPI. I signed an agreement form which entitled them to 20% of any claimed funds. I heard nothing back until 15th December when I received correspondence from the Bank stating that they received a letter from the third party but no Letter of Authority was enclosed. In the meantime they continued with the claim directly with me, I filled in forms, dealt with letters and phone calls from my Bank., I heard nothing at all from the original Claim Management Company regarding my PPI claim until today when they said they had been successful in chasing up my PPI claim and I now had to pay the 20%. I feel this is unjustifed as they did no work at all in securing my claim. How do I stand with this, I am more than happy to pay for any work they undertook but feel that £671 for doing nothing is a bit much. I spoke with the Financial Ombudsman and the Legal Ombudsman but they keep referring me back and forth to each other. Do I need to pay this or can I enter into correspondence with the Claim Management disputing the 20%. It is a bit of a grey area for me and I am not sure where I stand,. Any help would be greatly appreciated,

[nemesis45]

Re: Disputed Invoice with PPI claim Management Company

Hi welcome to LB,

Unfortunately you have fallen into a very common trap, you could have done this all yourself from the beginning.

Do you have copies of the document you sign at the start of the dealings with the CMC?

It seems from what you say that the CMC wrote one letter, and the bank responded re the " authority to act" if the CMC did not have your written authority to communicate with your bank then there is a possibility that they have voided any agreement you had with them.

A formal complaint ( at director level) to the CMC which allows them 56 days to investigate and respond to the complaint.

If the " final response" to the claim is inadequate you are then more likely to get attention from the regulators.

nem

[Jackie66]

Re: Disputed Invoice with PPI claim Management Company

Hi Nem many thanks for replying I have been on the phone all afternoon to Legal Ombudsman and the Financial Ombudsman and the Ministry of Justice all who cannot help me as 1. The company is not Company Registrated and 2. I live in Scotland and there is no Regulations in place regarding Claim Management Companies. I then got in touch with CAB who basically said I would have to pay as I had signed an agreement, I cannot believe this but will be writing to the company in the first instance to air my grievances before I pay anything.

[EXC]

Re: Disputed Invoice with PPI claim Management Company

I live in Scotland and there is no Regulations in place regarding Claim Management Companies.

I'm not sure about that.

3. Location of business
The Act covers regulated claims management services
carried out in England and Wales
. The requirement to be authorised is not dependent on where your business is located but on where you
carry out the regulated service. Therefore a business based outside of England and Wales or outside
of the UK (e.g. Scotland, Poland, Bermuda, South Africa, etc.) that carries out regulated services in
England and Wales must be authorized

https://www.gov.uk/government/upload...ised-notes.pdf

Regardless, I think it's simply a contractual matter. In my view If the bank had no letter of authority for the CMC to act for you, the CMC isn't capable of providing you with a claims management service. Thus the CMC cannot perform it's obligations under the contract.

The attached Legal Ombudsman case study suggests that they take the view that if a CMC doesn't carry out the work on a claim they can't charge for it.

Who is the CMC?

[Amethyst]

Re: Disputed Invoice with PPI claim Management Company

Their example countries seem a little random.... should have put Scotland, Jersey, Cayman Islands, Switzerland really. lol.

Possibly a Scots company that only operates in Scotland... need to know the company name really to check it out.

[nemesis45]

Re: Disputed Invoice with PPI claim Management Company

I'm not sure about that.



https://www.gov.uk/government/upload...ised-notes.pdf

Regardless, I think it's simply a contractual matter. In my view If the bank had no letter of authority for the CMC to act for you, the CMC isn't capable of providing you with a claims management service. Thus the CMC cannot perform it's obligations under the contract.

The attached Legal Ombudsman case study suggests that they take the view that if a CMC doesn't carry out the work on a claim they can't charge for it.

Who is the CMC?

That is an excellent summary of the situation!!

No letter of authority the CMC had no right to even attempt to contact the bank at all.


nem

[EXC]

Re: Disputed Invoice with PPI claim Management Company

Their example countries seem a little random.... should have put Scotland, Jersey, Cayman Islands, Switzerland really. lol.

Possibly a Scots company that only operates in Scotland... need to know the company name really to check it out.

According to the regs I posted I think the determining factor is not where the business is located but where the services are 'carried out'. So does that mean the location of the claimant or the bank they're claiming from?

[Amethyst]

Re: Disputed Invoice with PPI claim Management Company

I'd expect it would be the claimant, as the contract would be between the claimant and the CMC - and that's the bit that is regulated isn't it.

So if claimant and CMC are both in Scotland they don't need to be regulated ?

[Jackie66]

Re: Disputed Invoice with PPI claim Management Company

Hi it is a small company in Ayrshire and is called Ayrshire Debt Management Limited. when I spoke with the Legal Ombusman they said they were not a registered company so therefore they could not intervene in a complaint, which is what was re-iterated by the Financial Ombudsman, and the MOJ told me that because the company was in Scotland I was basically stuffed. Cab told me basically I had to pay it, I don't mind paying if they provided a service but one letter was written and then the invoice was sent., Do you think it is worth while writing a letter to them disputing the invoice, I just feel as though paying the £671 for nothing is a bit of a rip off, when i did all the work

[Amethyst]

Re: Disputed Invoice with PPI claim Management Company

Well if you take the regulators out of it it comes down to consumer contract - were you provided with a service ? It sounds like that is a no. If you can find a copy of the contract it would help to check through the terms. Do you have emails from them and do they have a website ?

( CAB always seem to say you have to pay if you signed an agreement - they never seem to bother about what is in the agreement )

Basically exactly what EXC said

Regardless, I think it's simply a contractual matter. In my view If the bank had no letter of authority for the CMC to act for you, the CMC isn't capable of providing you with a claims management service. Thus the CMC cannot perform it's obligations under the contract.

[steveA]

Re: Disputed Invoice with PPI claim Management Company

Hi Jacky
do you have an update on this? I am, in pretty much the same situation but I'm being invoiced for 35% of my claim 13 months after I was contacted by them, I did sign some thing but the bank told me they did not have letter of authority so believed I was handling the claim my self only to receive an invoice from the CMC.

Any advice would be appreciated

steve