Bank Smart commission claims using forged LofA via Small Claims Court

[CM-A]

I am currently helping a friend who is being taken to court for commission from a PPI claim they made using one of 16 Letters of Authority they forged back in 2014. The claim wasn't made until July 2019, even though he had complained 3 times to them that they were forging his signature and reported it to Action fraud. He didn't engage with the company after his final letter telling them he wouldn't respond to any further letters or demands. He didn't give them a new LofA or complete the questionnaire send by Pinnacle Insurance. However in April 2020 Pinnacle made an offer anyway. My friend didn't complete the acceptance form and the money was never claimed.
He didn't receive any letters from Bank Smart telling him about the FCA findings or that the trumped up cancellation fees and Breach of Contract fees would no longer be chased. He had years of letters from them threatening court action and debt collectors chasing them for fees amounting to £3,600, all for accounts for which he hadn't given authority for them to investigate because most of them had already been done. This has all been going on since 2012. They were subject to a IVA at the time and vulnerable. I've only known them a couple of years, but had I known them during that time would have helped them complain to the Ombudsman. Now they are in this position and I'm trying to help them. I have some legal experience but not in this field.
Bank Smart seem to be abusing the only source of income now open to them by taking people to court for commission relating to claims they had no authority to do.
We have denied all the claims, which amount to around £1,500, and opted for hearing at court to fight it, however we have mediation first which I am doing on their behalf.
I'm wondering how many others are being targeted in this way?
Any hints and tips would be much appreciated

[EXC]

Hi CM-A

Since FCA banned them from conducting claims management activity (which came after FCA banning them from issuing or pursuing invoices for breach of contract) Bank Smart have been scouring their customer book and issuing questionable court claims in a last gasp attempt to make some money.

If your friend didn't receive any PPI compensation then you have a good defence on that basis alone. I doubt if mediation will assist as you should only ever agree to mediation if you are willing to compromise on the claim amount, which you are not.

One other thing in your favour is the Bank Smart are absolutely hopeless at litigation and are likely to trip themselves up even if (in the unlikely event) they actually show up for the hearing.