Allay Acting Without Authority

[BELUGA01]

Oh interesting, sounds like there likely isn't anything in terms of an actual claim then. Will just wait to hear back from the FCA and plan a way forward from there. Thanks again!

[EXC]

I gave FCA a nudge and they said ''we are still considering your email and will respond as soon as possible'', so shouldn't be long.

[BELUGA01]

Thanks for the update Nick. Wonder what's taking them so long to consider?!

PS. heard back from the bank following my complaint today. On the incorrect address issue, they've acknowledged the error and sent more money as compensation! Suppose money is always nice, but actually I'd have preferred proper answers to the series of questions I asked them to try and understand how the error happened. Guessing I'm not going to get the explanation, but at least they've acknowledged the error was made.

On the issue of the signature, they said:
"With regard to potential fraud relating to the signature that you have mentioned, Allay Claims are a regulated entity authorised and regulated by the Financial Conduct Authority (FCA). We accept signatures on letters from them on the basis of good faith in light of the fact that Claims Management Companies (such as Allay) are regulated."
What do you make of that Nick? I read it as they don't really bother checking the signatures, they just wrongly assume that Allay have integrity.

Do you think any further action is required with the bank?

[EXC]

On the issue of the signature, they said:
"With regard to potential fraud relating to the signature that you have mentioned, Allay Claims are a regulated entity authorised and regulated by the Financial Conduct Authority (FCA). We accept signatures on letters from them on the basis of good faith in light of the fact that Claims Management Companies (such as Allay) are regulated."
What do you make of that Nick? I read it as they don't really bother checking the signatures, they just wrongly assume that Allay have integrity.

Do you think any further action is required with the bank?

That's pretty outrageous isn't it? It's not as if it's just a ''letter'' as thay described. It's a formal delegation of your authority for a third party to discuss and make decisions about your finanacial affairs. The signature is the ONLY thing the bank have to go on to verity it's authenticity. If their response is a 'final' response you could go the the Financial Ombudsman if you wanted to make a nuisance of yourself.

I'd like to send that to FCA if you could send it to me. It won't neccesarilly help you but it might help the bigger picture of encouraging them to tighten up their signature rules and the enforcement of them.

Wonder what's taking them so long to consider?!

It's because they've been put in a spot. I'm confident they'll respond soon though. Once they do (and regardless of what they say) we can start drafting your complaint to the Claims Management Ombudsman. To that end I've emailed you a couple of anonymised Ombudsman decisions where they've found against the complainant, which sadly I didn't have any hand in. You'll note that they say that an electronic signature is ''a valid authority'' and that's one of the key things we need to dispute.

[BELUGA01]

Thanks Nick. Will send the banks letter across on email when I get a moment.

Thanks for the ombudsman decisions, it's ridiculous that no one is willing to make a call on this signature issue.

Allay continue to chase for payment, they now say I've got 14 days to pay and if the debt remains unpaid they may pursue via an external agency or the courts...

[EXC]

We've finally had a response from FCA and it's good news, Allay can't rely on COBS as it doesn't apply to them.

Here's the relevant section of the email, I've removed your name.



So I can now start drafting your complaint to the Ombudsman. It'll take a few days as I want to take some time to do it properly.

If you agree I think it would be more effective if I submitted the complaint on your behalf as it gives us license to include my own correspondence with FCA and Beagles does have a relationship with them as a 'stakeholder' consumer group.

[BELUGA01]

That's good news indeed Nick, thanks a lot. Yes, totally in agreement for you to submit the complaint on my behalf as you suggest. Do you need me to supply any further background information?

Really appreciate your input. Thanks again.

[EXC]

No probs. I'm itching to get in win against Allay with the Ombudsman.

A couple of things I'd like from you if you could send them - the confirmation from your internet provider that it wasn't your IP address and the letter from your bank saying they accepted your signature on the LOA on the strength that Allay were 'regulated' (lol).

The Ombudsman is currently quoting 4 months (from the time a complaint is filed with them) before they start looking at the case I'm afraid but as soon as we file it you can tell Allay to stop all collection activity, as they implied that they would.

[BELUGA01]

Thanks Nick, both docs just emailed over. Give a shout if you need anything else. Noted on the 4 month wait, it'll just be nice to have Allay cease the hassling.

[EXC]

That's great, thanks.

I might well be asking you some questions over the next couple of days and would be grateful if you could repond prompty as for various reasons I want to get the complaint buttoned down and sent in by the 31st. Obviously I'll get you to check the draft for accuracy before we file it.

[EXC]

A few more things:

1) When did you move out of the address on the LOA and into your current address?

2) Can you email me your current address as I'll need to fill out your details on the Ombudsman complaint form (I'm sure they won't give it to Allay).

3) I know you got a copy of the LOA from the bank but was it the exact copy of the one Allay sent you with their complaint response?

[BELUGA01]

Hi Nick,

Thanks. Emailed you with responses to the above.

[EXC]

Complaint submitted to the Claims Management Ombudsman.

It'll probably be a couple of weeks before we get a confirmation email confirming receipt of it, at which point you can forward it to Allay and tell them to cease collection activity pending the outcome.

[BELUGA01]

Hugest thanks Nick, so appreciative of all your input. Will wait to receive their confirmation and then contact Allay as you suggest.

Cheers

[EXC]

You're welcome but we've got a ways to go yet.

These are the Ombudsman's complaint stats for the 6 months ending December 2020. Allay were the most complained about CMC by a long shot but the uphold rate (the percentage of complaints that they found in favour of the consumer) is concerningly low at just 17%. Generally Ombudsman schemes across sectors would have an uphold rate of around 50%.

I'm trying to arrange a meeting with them to discuss our concerns as in my view something isn't right.