Cartel Client Review

[EXC]

Re: Cartel Client Review

http://www.crainsmanchesterbusiness....100319986/1031

Some of the comments at the bottom of the article are quite interesting.

[fixed gear]

Re: Cartel Client Review

what happens if my case gets passed onto another solicitor but then ccr goes tits up. will i be able to claim my money back having paid the fee by credit card

[Amethyst]

Re: Cartel Client Review

so long as it hasnt been written off you should be covered under section 75.

[fixed gear]

Re: Cartel Client Review

yes i really needed that lol my claim wasnt for cc write off
------------------------------- merged -------------------------------
also what happens if ive balance transfered but still hold the card

[Amethyst]

Re: Cartel Client Review

sorry that was faecetious of me

I think sect 75 still covers you, if CCR go under, on the card you used to make the payment, that you have repaid the cc company already (by transferring the balance) shouldnt make a different.

[fixed gear]

Re: Cartel Client Review

ok thanks will no doubt keep you informed

[Amethyst]

Re: Cartel Client Review

Good luck. I know for people who have paid money to these companies its quite harsh seeing them 'having problems' but I for one will be seriously glad to see them (and many others) go and I have no interest in it other than seeing people losing money to the tune of thousands on false promises and misleading claims. (ie I'm not a rival CMC trying to nick their business and I'm not a bank wanting unenforceable claims companies to disappear)

People have ignored the law since 1974 (except Mrs Wilson of course) and suddenly, when the law changed to remove the irredeemable bit in 2006, everyone wanted to claim ? BANDWAGON jumping without experience, skill or real knowledge of the law. No wonder Francis Bennion is pished off.

[Amethyst]

Re: Cartel Client Review

BBC NEWS - Moneybox


Cartel Client Review customers money may be at risk


By Ruth Alexander and Karen Kiernan
BBC Radio 4's Money Box


Ex-staff say many customer files sat in boxes "gathering dust"

Millions of pounds of customer money may be at risk following the forced closure of a law firm used by a major claims management company.
Consumer Credit Litigation Solicitors (CCLS) handled tens of thousands of cases on behalf of Cartel Client Review (Cartel).
CCLS was shut down this week by the legal watchdog, the Solicitors Regulation Authority.
Last month, BBC Radio 4's Money Box revealed both firms were being investigated following complaints from customers. The Ministry of Justice investigation into Cartel continues.
Cartel offers to process financial claims against lenders and credit card companies on behalf of customers, based on flawed credit agreements.
Most customers were assured of a resolution to their case in 6-12 months, and if their claim was unsuccessful they would get their money back.
It is understood that Cartel has processed over 70,000 claims, but hundreds of customers have told the BBC their debts remain and that they have not received refunds as promised.
One customer said he had paid more than £10,000 to Cartel over two years ago but had heard almost nothing about most of his claims, and received no refund.
'Too close'
Cartel passed all its claims to CCLS for detailed assessment.
The SRA said it had acted to protect clients of CCLS because of "suspected dishonesty".
MD Carl Wright said Cartel has stopped taking new business

A spokesman said it was worried that the relationship between Cartel and CCLS was too close and might be against the best interests of the customers.
Cartel and CCLS insiders have told the BBC that the two firms operated out of the same office building in Manchester, at one stage even operating on the same floor.
The managing director of Cartel, Carl Wright, is thought to have had a lot of influence over the law firm.
A former CCLS employee, Colin Power, who now works for a competitor, said almost all the mortgage claims he assessed for the firm had no reasonable prospect of success. But he said staff were not allowed to tell clients they had no claim.
Mr Power said that if the legal team assessed a file and found there was no basis for a claim, their file would be passed on to a "special review and investigations team" for yet more analysis.
But he said he saw no evidence of results from this process:
"These files were just left in an office, gathering dust."
A Cartel spokesperson denied this, and likened the service to a production line with many stages of process. Taking a toothpaste factory as an example, the spokesperson said that a tube of toothpaste would not be considered finished if it did not yet have a lid on it.
But other former employees confirmed Mr Power's version of events to the BBC.
Some said thousands of files were never looked at properly, because there were not enough staff.
The SRA said CCLS was the biggest law firm they have ever shut down in terms of case volume.
Cartel denies that files have been left neglected

Customers have paid money to Cartel, not the law firm, so the SRA are unlikely to be able to help with refunds.
Perhaps the best option they have is a rather ironic one.
The Ministry of Justice said customers who have paid Cartel on their credit card could seek compensation from their credit card company, if they have not received the service they paid for in a reasonable amount of time.
One woman who paid several thousands of pounds to bring claims on her mortgage and credit card debts told the BBC she and her husband now feel foolish.
"We thought if there was a loophole this might help. But you sort of feel embarrassed and you feel greedy and stupid that you've done it."
What next?
Customers have paid out large amounts of money and got very little for it, yet Mr Wright paid himself £790,675 from Cartel Group Holdings in the financial year ending September 2008.
It is understood that staff at CCLS and many at Cartel have not been paid in February and March, although a spokesperson denied that.
According to accounts filed at Companies House, if Cartel were to go into liquidation, Mr Wright would be first in line for any payouts, forensic accountant David Winch told the BBC.
Mr Wright holds a charge over the company's assets and would have to be paid what he was owed before any customers are paid what they are owed, he added.
Cartel denies that files have been left neglected. Meanwhile, Mr Wright has issued a notice to Cartel sales agents, saying that the company is "temporarily putting a hold on all new Cartel business" - while he considers "what Cartel does next".
While the company is still being investigated by the Ministry of Justice, a number of customers say it should have been shut down with CCLS.
The Ministry of Justice said it could not comment on an active investigation, as that might jeopardise the outcome.

[EXC]

Re: Cartel Client Review

Cartel denies that files have been left neglected

Putting aside the anguish and misery that Cartel have inflicted on people for a minute, you couldn't make this up could you?

You'd need a forklift to deal with this lot. Still at least someone seems to have done well out of this - Staples Office Supplies.

[dontknow]

Re: Cartel Client Review

for what its worth and maybe that is nothing, I have it from an insider that cartel are closing on tue. given the post above it may be very hard for peeps to get money back.
not personally affected but if it is any use I hope you guys can work it out.

[Kafka]

Re: Cartel Client Review

looking on the bright side, at least the staff should not have to join the dole queues. With all the skills they've honed at CCR, they should be able to walk into any bank or DCA as a high-flyer with potential - even in the soon-to-be-tightly-regulated sector (sorry Hector)

[MIKE770]

Re: Cartel Client Review

Heard also that they are due to wind up Tuesday, so we will see.

[natweststaffmember]

Re: Cartel Client Review

Cartel customers face £30k court fees | This is Money

Cartel customers face £30k court fees

Alan O'Sullivan, This is Money
15 March 2010 Reader comments (1) |Chat
Customers of claims company Cartel Client Review could find themselves further in debt to the tune of £30,000 after it has emerged its legal firm botched their court cases.

Court costs: courts fees can cost between £20-30,000 if a case is unsuccessful.
How long to clear your credit card debt:
Wake up and smell the coffee...
- Card debt calculator


The firm working almost exclusively on Cartel's 'debt-free' cases, Consumer Credit Litigation Solicitors, was shut down by the Solicitors Regulation Authority last week due to concerns over 'suspected dishonesty'. It has now emerged CCLS took four cases to a Manchester High Court before Christmas as part of 10 test cases chosen by a Judge Waksman to decide the circumstances in which debts could be deemed 'unenforceable'.
CCLS failed to win the cases for its clients and had costs awarded against them.
However, the solicitors did not have insurance in place to cover it in the event of a failed court case, according to a source at Manchester Civil Justice Center, which has details of all upcoming cases.
This means the indebted individuals who originally hoped Cartel would free them of their debts could now be slapped with further court fees of up to £30,000 each.
This comes despite Cartel customers being led to believe their initial fees were the only costs they would pay in the event of an unsuccessful claim.
Further cases are being held in Manchester presided over by Judge Waksman on March 24 and 25 to decide whether these costs should be borne by the individuals involved or paid for by CCLS. A judgment is expected shortly after Easter.

The SRA says between 50-70,000 people could have paid at least Cartel's £495 minimum fee, with many paying more. The firm promised to free clients of their debts for large fees. The SRA said it found files which just seemed to have been piled into boxes at the CCLS' offices.

• Concerned about the fees you paid to Cartel? Read our Q&A on your chances of getting them back...
And what has been going on at Cartel Client Review?
Cartel founder Carl Wright paid himself £790,000 in the year to September 30, 2008 from his company Cartel Group Holdings (CGH), of which Cartel Client Review is a subsidiary.

CGH also earned £2.2m from its subsidiaries throughout the year, but Mr Wright declined to disclose how much of these expenses were paid directly by Cartel Client Review.
A This is Money investigation has also found Mr Wright took out a £300,000 loan in August last year, secured against the future success of hundreds of client cases. He said this was for the 'expansion of the business' when asked by us in January.
However, this deal values each claim at only £500, little more than the money paid by some clients to have their case reviewed.
At the same time, Mr Wright took out a 'debenture' on the company, which makes him a priority creditor over any other creditor should the company go bust. This would make it difficult for Cartel to secure loans from other sources, as any other creditor would only be paid after Mr Wright was paid funds owed to him.
Marian Owen, editor of Business Opportunity Watch, a subscription service for entrepreneurs, said: 'Why did he feel it was necessary to suddenly do that? If a company did go bust, debentures like this could be set aside if the liquidator thought a person was trying to get an unfair advantage over other creditors by using insider information.'





Read more: http://www.thisismoney.co.uk/credit-...#ixzz0iFqeXrjY

[dontknow]

Re: Cartel Client Review

I fail to see what other conclusion can be drawn with regard to the debenture thingy, surly this is just beyond the pale, I find it hard to draw any other conclusion than that he know it was going down the pan and decidided to deliberatly get what he could before it did, to the extent of not paying staff etc, why no insurance? why continue selling services if they know they couldn't win, why tell the press fairy stories?

This is shamfull behaviour and I think warrants more than just censure, fines and costs.

[orc]

Re: Cartel Client Review

Some interesting information on this web site, FYI.

http://www.scam.com/showthread.php?t=122675&page=24