Pick the Right Claims Management Company

It could make a big difference to the actual money paid to you


If you are in the process of picking a company to handle your claim against a lender it would be fair to say that they all make claims about being the best, but any prospective customer should look very closely at the small print.


The table below makes a fair and honest comparison of the top Claims Management Companies (CMC) who are involved in making claims against Guarantor Loan Companies, Payday Loan Companies and Bad Credit Loan Companies.


All the information is taken from the relevant company’s website.

 



The first thing most people look at is the percentage that a CMC charges. Sadly a lot of people look no further and this can be a terribly expensive mistake as the differences are MASSIVE.


It is critical to check how the fees are calculated if they are calculated on the “Gross” amount offered this means that the CMC will charge its percentage on the top line offer before the right off of existing balances or tax.


As you can see from the table above, ONLY Redbridge Finance calculates its fees on the amount left after all deductions are made. 


Real Example

As a real-life example, this is one of our customers who asked us to make a claim against Amigo Loans.


We have changed her name to G for privacy as it is a real customer.


G had 3 previous loans with Amigo, all paid off, and one current loan.


We made a claim against Amigo and the very kindly decided that G should be refunded for all loans.

 

On loan one she was refunded                       £8,494.79

On loan two she was refunded                      £543.42

On loan three she was refunded                    £1,641.58

On loan four she was refunded                      £341.75

 

Total Refund due                                            £11,021.54

 

BUT, G current loan had a balance of             £12,170.79

 

So, no cash was to be paid, but her debt to Amigo reduced from £12,170.79 to £1,149.25, a reduction of £11,021.54.


As she is a customer of Redbridge Finance she owed us nothing. We took no fees as we only calculate our fees on what the customer is actually sent.

 

This is the calculation as a Redbridge Finance customer:

 

Redbridge Finance

 

Fee Calculator

 

 

 

Fees Example

 

 

 

Refund Type

Full Reduction

Total Compensation

£11,022 

Reduction Amount (Benefit to Customer)

£11,022 

Net Amount Offered

£0 

CMC Fee %

 

Amount for Customer

£0.00 

 

 

Amount for SMC

£0.00 

 

If she had been a customer of, say, Sanderson Drake this is what the figures would have looked like:

 

Sanderson Drake

 

Fee Calculator

 

 

 

Fees Example

 

 

 

Refund Type

Full Reduction

Total Compensation

£11,022 

Reduction Amount (Benefit to Customer)

£11,022 

Net Amount Offered

£0 

CMC Fee %

 

Amount for Customer

(£3,967.92)

 

 

Amount for SMC

£3,967.92 

 

The customer would owe Sanderson Drake £3,967! 

 

The picture is even worse if she had been a customer of My Claim Solved:

 

My Claim Solved

 

Fee Calculator

 

 

 

Fees Example

 

 

 

Refund Type

Full Reduction

Total Compensation

£11,022 

Reduction Amount (Benefit to Customer)

£11,022 

Net Amount Offered

£0 

CMC Fee %

 

Amount for Customer

(£4,959.69)

 

 

Amount for SMC

£4,959.69 

 

In this example, she would owe the CMC £4,959.69!

 

In another example (real customer) the complaint was against Lending Stream and the customer owed them nothing as all loans were paid off.

 

So, if we compare against Ingram Toft, who on the face of it, charge the same as Redbridge Finance being 25% plus vat, so 30%. 

 

Ingram Toft

 

 

Fee Calculator

 

 

 

Fees Example

 

 

 

Refund Type

% Charged

Cash

Total Compensation

£8,899 

Tax

£685 

Net Amount Offered

£8,214 

CMC Fee %

30.00%

 

Amount for Customer

£5,544.15 

 

 

Amount for SMC

 

£2,669.55 

 

Redbridge calculates its fees after the tax has been deducted:

 

Redbridge Finance

 

 

Fee Calculator

 

 

 

Fees Example

 

 

 

 

Refund Type

% Charged

Cash

Total Compensation

£8,899 

Tax

£685 

Net Amount Offered

£8,214 

CMC Fee %

30.00%

 

Amount for Customer

£5,749.59 

 

 

Amount for SMC

 

£2,464.11 

 

 

So a difference of £205.44 for the customer. On the face of it, it looks like Ingram Toft and Redbridge Finance charge the same, but with Redbridge Finance the customer is £205.44 better off with the same complaint.