I’m afraid that if you want to court on this, you would lose.
Even if you had a recognised psychiatric illness at the time you signed up for the paperwork, there is no way I imagine that the PPI company would be able to realise that you had that illness.
The court would accept that you may have already decided to contact the bank but the fact remains that you didn’t and you engaged the PPI company to do this for you.
The other view that the court would take is that although you had decided to contact the bank, you were on your own admission under considerable stress and suffering sleep problems and had difficulty concentrating and hence may not have been capable of actually making the claim.
There is after all a lot more work involved in making the claim (even though the process is not difficult) than there is in simply signing the document to get someone else to do it.
What you need to do is stay out of court and you may find that they will be willing to negotiate a lower fee. However if they will not accept a lower fee, you would have no alternative but to defend their action and you already have my opinion as to how that would go.
You could try sending them a cheque for £400 in full and final settlement and tell them that by cashing it, they are accepting it and if they do not, they should return it to you. They may just cash it.
Can I clarify anything for you?
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