Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

PPI mess - MIL caught out, advice please?

(13 Posts)
JParkson Mon 17-Mar-14 10:21:26

Hi all,

my disabled MIL has had some PPI reimbursed from her credit card, with 'help' from a company called action direct.

The credit card co. have responded saying yes they'll reimburse her, and happy to do so directly to her. MIL's happy as the amount in question would clear her balance and she could close the card.

Now we've had an invoice from action direct saying they want their 25% cut... £750!!!

They say they'll take their cut from the payment issued to them, then they'll forward all remaining monies to MIL. If the reimbursement doesn't go to them, they'll raise an invoice (which they now have done) which will be payable within 14 days.

If it's not paid, then they'll take their payment from the debit/credit card details given to them when they were charged with the 'work'.

MIL isn't sure which card details they may have, she thinks it's just the CC she's claiming for. But i've just found out that her husband actually set up the claim... he passed away last year, so it's a bit hard to ask him if he supplied any other details.

I don't want to contact AD as that would start ringing bells that we're not happy with the charge they're levying.

25%? Really?! Could we haggle down to 10%?

Where does MIL stand in all of this?

She's going to have to pay it, isn't she?

WishUponAStar88 Mon 17-Mar-14 10:26:24

If she signed up to their t&cs which presumably she did then I would imagine it's too late. These companies charge a fortune for doing very little. If you or your mil need to do this again it is very simple to do on your own - just phone the bank or company that charged you ppi and ask them to send you a form out.

JParkson Mon 17-Mar-14 14:15:33

That's what irritated me a little - DH and I did ours ourselves, so we can verify how (reasonably) easy it is! But step-FIL didn't for whatever reason (not going to speak ill of the dead)

MIL has Parkinson's and isn't very money-savvy, so she did it on her DH's instructions.

Oh well, live and learn.

lostblonde86 Mon 17-Mar-14 14:18:44

If she has signed the contract then she has agreed to pay them.

gamerchick Mon 17-Mar-14 14:23:07

She has to pay them. The husband used a company and had to pay them a grand out of 3 for their services.

The money was paid to him and they hounded him daily until he paid them.

LadyMaryLikesCake Mon 17-Mar-14 14:25:14

You could argue that the contract is invalid as she didn't have the mental capacity (sorry, it's a legal term but I don't think it's very nice) to understand what she was signing. It may be best to pop to the CAB or a local law centre, they can help with this.

They do charge a fortune for doing very little but as far as they are aware she knew what she was signing. It's down to you to prove that she didn't. A lot of older folk don't realise how easy it is so when someone offers to help they don't look into it properly.

BatCrapCrazy Tue 18-Mar-14 10:08:43

I used to work for Action Direct and I will tell you now, they are the most awful, heartless company in the world.
What you need to do is, report every card that your mother has lost of stolen so that the bank send her out new ones, and the details will be different to the ones that AD may have on file. If they then try processed payment, it will bounce. This gives you time to appeal to either the Ministry of Justice, or financial ombudsman.
Also, the company have been in trouble before for storing customers details for this reason.
I think it is likely that your DM would have paid an upfront fee (possibly 100pounds roughly).
The company are awful. They used to buy phone number data from pre-paid funeral plan companies so that we could target the elderly.
As far as i'm aware, Action Direct are no longer trading but I think that they can still pursue action against your DM through one of their many sister companies.

isitme1 Tue 18-Mar-14 10:12:51

Op
Im sorry I cant help but maybe you can help me grin
my dad thinks he may have a few things to claim ppi from (3 mortgages, credit card etc) and how do I go about it without getting a company involved? Your advice is much appreciated

gamerchick Tue 18-Mar-14 10:15:28

www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Flibbertyjibbet Tue 18-Mar-14 10:25:35

25% is quite normal fees for the companies that reclaim your PPI fees for you.

Without their 'help' would your mil have even had the payout?

Why not concentrate on the £2250 that she has got, rather than stewing over the fees? (just trying to think positive here!)

isitme1 Tue 18-Mar-14 19:48:21

Thank you gamerchick

JParkson Thu 20-Mar-14 07:24:15

Thanks BatCrap! Well, the whole setup was her DH's idea... He has since sadly passed away, so I'm not sure what details they'd have been given in the first place. I'll ask her...

flibberty That would be nice if it were £2250! But her payout is (only? blush) £2500 in the first place.

Babelange Thu 20-Mar-14 12:54:22

I've been tangled up in a PPI claim my DF initiated - he paid a fee upfront (known as 'advanced fee fraud') and in trying to get his money back, the business gave up its licence to trade in this area after they were investigated by the Claims Management Regulation Unit who regulate these businesses. Their email for reference is: consumersupport.cmu@staffordshire.gov.uk

I am cutting and pasting a paragraph from an email they sent me:
"All claims management companies that we regulate have to have an official complaints procedure. You should write a letter of complaint to the business, [reminding them that you cancelled within the fourteen day period, and have made attempts to contact them since then; and that you have no further desire to sign the contract or pursue legal relations with them]. Send this letter by recorded delivery and keep a copy. It is important that you do this, rather than phone or email, as it is your evidence of the complaint. Under the rules that the business has to comply with, it has to respond to your complaint within 28 days. If they do not respond within this period, or you are not happy with their response, you can contact us again to forward your complaint onto us for investigation."

So you are entitled to complain using the claim management company's published procedures, and then take it from there.

I would, however, suggest that you take what is offered (�1750?) and sever all contact with the organisation. I have been trying to get a refund of �400 for my DF and the silly bugger NEVER even took out any PP insurance - NEVER having had a loan or credit card of his own. I am now embroiled in a dispute with his bank related to this!

I am all for people claiming what they are entitled to but when people see ��� signs they seem to take leave of their senses. The contract that my DF didn't sign (he at least had the good sense to realise he was out of his depth), was a licence to snoop through your finances and offer other financial products.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now