LOA request

[bigloaf]

The CMC company I am dealing with have already won a case for which I have settled their fees of £300.
They now want me to send them a letter of authority for a store card I had with Santander for which I have already been told that there is no PPI.
I have an inkling they are setting me up for a claim of breach of contract if I don't send the LOA back to them.
Should I send the LOA? What are the repercussions if I don't?
I was considering pre-empting the claim by sending a complaint letter to them as I would probably refer any demand to the financial ombudsman.

I also wish to cancel any contract I have with them.

[Awareness]

Hey BL,

It's probable the CMC found more than one account with PPI on, with the same business. Sometimes what happens is that the business the claim is against will throw the LOA the CMC has provided around and not attach it to every case. In the meantime, the business will carry on corresponding with you and drop the CMC for that particular account altogether.

So, I suspect the CMC is asking you to sign a new LOA because they've not had the letter from the Bank saying there's no PPI and they need a new LOA from you to get it. If that's the case, you can do three things;

1. Provide the LOA and let the CMC carry on getting the letter from the business.
2. Provide the CMC the letter you received saying there's no PPI on the account they're asking a new LOA for and ask them to drop it.
3. Ignore it at your own risk and you will probably find a breach of contract invoice in the post in a few weeks, unless of course their T&Cs don't allow for BCs.

In terms of pre-empting the BC by complaining, I think you'd be wasting your time; primarily because you'd be complaining about something that hasn't happened. The obvious end result would be a rejected complaint and referring the same complaint to FOS would be futile.

If you want to cancel your contract with them, think carefully about whether or not that's in your interest. Depending on where the claim(s) is up to, the CMC may have the right to charge you. In some cases, they might have done a fair amount of work, in which case you'll be faced with a hefty invoice. If you've got no PPI with the account(s) (and the CMC doesn't know either way (and you'd need to show them the letter you got)) they're charging you for, it's a waste of money.

If it was me, I'd go for option 2 above and then make enquiries about what claims are left (if you don't already know). If you've got loads, just let them carry on. That way, you might gain something and if you don't, you've nothing to pay for.

Hope this helps.
A

[bigloaf]

Thanks A.

I contacted the CMC by letter 2 months ago following your advice. No further correspondence from them so assume they've dropped my PPI case.