PPI Reclaim

A question about : PPI Reclaim

Hi, I had a ppi claim turned down a while back so decided to pursue it through a claims company, however in the middle of the claim Lloyds contacted me and then sent me a letter advising that they had reconsidered the claim and I would be entitled to a settlement, reading the T&C's of the claims company it appears they are entitled to claim 30% of my settlement despite Lloyds reopen one the case off their own backs....can this possibly be correct as this seems scandalous?

Best answers:

• Presumably the original rejection from Lloyds told you clearly that you could have gone to the Financial Ombudsman Service.
  Why didn't you?
• Thank you for your replies, to answer Insider101's q's yes I have signed the initial paperwork they sent me and I heard nothing back from them so in November I called them only to be told Lloyds had told them that I never had ppi, I then sent in documents in January to them proving that I did have PPI and again have heard nothing. I have called them today and they have advised that Lloyds have not acknowledged to date confirming whether they are prepared to accept the claim. I have read on their contract that I have to tell them within 7 days of Lloyds confirming the settlement figure to me. I totally understand I have signed the paperwork/contract with this company but so far they have actually done nothing to help my situation and are still waiting to hear from Lloyds regarding whether the claim will be accepted - how can they claim 30% of my settlement for doing very little?
  In answer to Magpie Cottage's question, at the time I thought there was little point going to the Ombudsman, however, knowing what I know now I definitely would have done - you just dont expect a bank to try and con you and I definitely didnt expect the bank to reverse their original decision.
  I'd like to find out if anyone has tried to fight companies like this who it has come to light are just as bad as the banks and if so how far they got? Without wishing to repeat myself they are getting 30% of my pay out for maybe writing one letter or one telephone call to Lloyds.
  Any feedback would be appreciated but I know I'm kind of fighting a losing battle.
  Thanks
• So to clarify:
  1. Your initial PPI complaint to LLoyds was rejected? By which you mean they stated that it was not missold. Or do you mean they stated you didn't have PPI to start with?
  2 The CMC contacted Lloyds asking whether you had PPI and were told you didn't? (I assume this is what happened since if they'd complained again they would have been told that you had already done so).
  3. You sent evidence to the CMC and then Lloyds wrote back directly to you advising that they had reconsidered your complaint and were prepared to uphold it?
  As regards them doing very little, I'm afraid this is of no relevance, they rarely do much to earn their fee but if that's what's been agreed there's no mileage in disputing it on that front.
  What you should do is ask for it in writing from the bank that they reconsidered your complaint (which was originally made by you directly) off their own backs rather than because of any involvement from the CMC. If they persist in hassling you for it then send them a copy of the letter. If they hassle you again, put in an official complaint stating that the offer was not due to their involvement and they are not entitled to it. If they do not stop hassling you then you will refer the matter to the legal ombudsman. If you do this then they will have to pay a Ј350 case fee whatever the decision is (the same blackmail tool that they use on the banks in the form of the FOS).
  If the money at stake is only a few hundred then they will probably just decide that it is not worth the hassle to pursue it and write this one off. On the other hand if you get thousands then you can probably expect a stiffer argument.