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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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i was contacted by a firm who deal with ppi compensation and

Resolved Question:

i was contacted by a firm who deal with ppi compensation and agreed to act on my behalf concerning a claim with barclays bank. i was awarded 3016.92. in compensation. the firm have sent me a bill .08. which is 25 percent plus vat. my disagreement is the fact that the only thing the company did was send a standard letter to barclays asking if i was entitled to compensation. everything else was dealt with by myself and barclays. it seems a lot of money to pay standard letter. could you please tell me if this is legal or not.
many thanks.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

my name is ***** ***** I will help you with this.

Alex Watts :

please let me know whether you signed their terms and conditions agreeing to 25% ?

Customer:

i cannot see the response to my question

Alex Watts :

Did you sign their terms and conditions?

Customer:

yes i did sign the terms and conditions agreeing to act but as i stated earlier the firm only sent a standard letter to barclays. apart from that i dealt with the claim myself with no help from the company at all

Alex Watts :

Did you read the terms and conditions? Did you understand you would give them 25%?

Alex Watts :

If you did, then this causes a problem. It makes no difference how little or how much work that they did.

Alex Watts :

The fact is that you signed a legally binding agreement saying you agreed to give 25%

Alex Watts :

The law also says that in the absence of any contract they are entitled to a reasonable fee work done.

Alex Watts :

Therefore if there was no contract, then the Court could assess their fee.

Alex Watts :

In this case as there is a contract, you read it (I assume) and signed it, you agreed to 25%

Alex Watts :

Sadly all you can do is challenge the fairness of the 25% term.

Alex Watts :

Regulation 5 of The Unfair Terms in Consumer Contracts Regulations 1999 states:

Alex Watts :

5.—(1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.


(2) A term shall always be regarded as not having been individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term.

Alex Watts :

As such you can only challenge it on this basis, nothing more

Alex Watts :

Can I clarify anything about this today please?

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