Monday, August 29, 2011

Redress Claims' no win, no fee PPI call cost a packet

A mis-sold payment protection insurance phone call ended up with Redress Claims taking �4,330 from your credit card

Redress Claims phoned offering to help claim back mis-sold payment protection insurance on a no win, no fee basis. We discussed my credit cards, loans and mortgage and they asked for my credit card details. The fee would be �4,330 and they would send an application pack for me to sign and return straight away so they could proceed. It arrived on 7 June and I started to gather information but three days later was rushed into hospital. After recuperating with friends, I returned home on 4 July and discovered that Redress Claims had taken �4,330 from my credit card on the day of the phone call. I am now paying interest, which I can't afford.

I was told I'd missed the cooling-off period, which they never mentioned. They claimed they have already done work worth �3,466 and, if I cancel now, I will get back only �864. I feel I'm being blackmailed.
JC, Preston, Lancashire

I wonder how people at Redress Claims sleep at night. As you now know, reclaiming mis-sold PPI premiums, either from the lender or through the Financial Ombudsman Service, is completely free. I wanted to know just what Redress Claims does for �4,330 but it wouldn't talk to me, even though you gave your authority for the firm to discuss your complaint with me. It just emailed to say you had resolved your concerns and the matter is closed and subject to legal privilege, whatever that is. I had asked why it had taken money from you upfront after calling it a no win, no fee service. It said it charges in several different ways and it is up to the client to choose. You hadn't even chosen to do business with the company before it took your money.

I asked Redress Claims for a complete refund as you had not agreed to sign up, but it said the telephone call created a verbal contract. You could have cancelled in the cooling-off period but weren't told about this and were soon in hospital. It refuses to release you from the contract. The company would still talk only to you, not me, and you felt so pressured that you did send in a completed application form.

At that point, Redress Claims discovered it had overcharged you. Claims management firms charge a percentage, typically 25% plus VAT, of the total compensation received. Apparently the original saleswomen had written down a higher figure than you were actually claiming. It is refunding �2,740, which you have accepted.

You can email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. The newspaper accepts no legal responsibility for advice.


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Source: http://www.guardian.co.uk/money/2011/aug/27/redress-claims-ppi-call

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