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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a discrepency with a PPI company that i signed up

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I have a discrepency with a PPI company that i signed up with back in 2010. They got me some compensation but i was then told they could do no more and so i thought my account was closed. Out of the blue in November last year the loan company got in touch to say they had reviewed the cases and owed me a bit more money which they have since paid out, and now the PPI company want there share of the money. I am relecutant to pay them the money (around £1300, refund was around £4000) because other than the initial investigation which i paid them for, i don't feel like they've done anything to deserve the fee.
I sent a letter of complaint and after 8 weeks i've had a reply back which i don't feel really answers my complaint.
My question is, is it worth pushing the issue and going to the financial ombudsman or should i just pay them?
Hello my name is ***** ***** I will help you with this.Did you sign any terms and conditions with the PPI company please?Alex
Customer: replied 1 year ago.
Yes at the time i signed up to the terms and conditions. But over the years the rules have changed. For example when i signed up you got paid all the compensation and had to add it to your tax return, now the tax gets deducted before you receive it but the PPI company still take there fee from the amount before tax. I've attached a copy of the letter of complaint i sent to them back in Feb, i wanted to scan in and send you the reply from them as i don't think they've answered my query, but i've forgotten it today so will have to do it tomorrow.
I'm not disputing that they provided me with a service and that they should be paid for the original work that was done. A service which at the time i did pay for. My dispute is what's happened since. The fact that other than contacting me to say i was owed a bit more (after the loan company had told them not because they chased it up) they haven't done anything else to earn the fee. In the years that have passed from my last payout i've moved house, and got divorced so my name has changed, they have not kept in touch for all this time so don't have up to date records and i never informed them of the changes becuase i thought my case was closed.
At what point does a contract terminate? Should they not have kept me informed of changes like the one mentioned above, or check to see if my circumstances/details had changed?
Indeed. I would agree in this case that no further fee is payable. What did they actually do - nothing. In fact they got it wrong, they didnt think any more was recoverable when in fact it was.Therefore you are not under an obligation to pay because they didnt do anything and what they did do was wrong.Can I clarify anything for you about this today please?Alex
Customer: replied 1 year ago.
So where do i go from here? there lengthy letter which is basically just justifying the fee in the first place ends with saying i have 30 days to pay up or they will refer it to there legal office. Do i contact the financial ombudsman to complain, reply to them to tell them i am not paying as they've not proved to me they've provided a service? or just ignore them?
Yes I would contact the Ombudsman. They havent done what was agreed and expect payment!Even if the Ombudsman doesnt do anything I wouldnt worry about legal action. Imagine going before a Judge to say, well we didnt do any work and what we did was wrong, but we still want paying.Any claim for £10,000 or less in fees is a small claim and as such legal costs cant be recovered.Does that clarify?Alex
Customer: replied 1 year ago.
Thank you. I've attached a copy of there letter just for completness. This helps and i will contact the ombudsman, i was just concerned that it would be seen becuase they made the initial contact with the loan company and did recover some of the money that it would be seen that there were entitiled to this also.
I will push it.
Customer: replied 1 year ago.
Helps if i attach!
Thanks, ***** ***** is the same. I see they are saying they made the initial contact, but then you did the work after that.They didnt do what they should have done and in a timely manner.Does that clarify?Alex
Ash and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Yes it does thank you for your help. I feel better about fighting it now and not just paying the money over. I will refer it to the ombudsman and see what happens.
Good luck. Alex