Hi, I wonder if anyone could offer some advice?
I received a letter from a firm of solicitors stating that a small secured loan I took out in 1997 was possibly subject to a secret commission.
They included a copy of the mortgage deed but nothing else.
They wanted me to sign a contract for their fee of 35% of monies they claimed back + contribution towards legal costs from GE Money.
I wrote to them stating that I thought 35% a bit much
- they replied saying that they weren't even sure that there was a claim to be had,
but their initial investigations would be free and if a claim was pursuable,
their fees could be less depending on the amount claimable.
I have now received an offer from GE Money via the solicitors to pay:-
the secret commission
+ contractural interest from the date I entered the loan to the date it was redeemed
+ 6% interest from the date the loan was redeemed ("delay interest")
less 20% of daily interest paid to HMRC
+ the fee I paid to the broker
+ contribution towards legal costs.
SO out of approx £1500 I get approx £800.
This deal is on the table until the end of January and includes a confidentiality clause.
Does this sound about right?
I have spent many hours looking into this, and researching Hurstanger
- unlike HUrstanger, this is a proper secret commission (in that I knew nothing about it at all - I thought the only commission being paid was the one I made).
Whilst I am grateful for the heads up re; secret commission (I had never heard of it),
I have no idea where these solicitors have got my details from,
where they got a copy of my mortgage deed from, or if this is worth pursuing.....
Obviously £800 is an unexpected bonus after all of these years, am I being greedy thinking that there should be more?
Should interest be paid on the whole amount of commission + contractural interest that I paid, not just on the secret commission?
If I were taking them to court myself the rate would be 8%?...
In the meantime the solicitors are pressing me to sign the agreement and send it back to them before the end of the month when it expires.
Thanks in advance
This loan was 18 years ago, is there no time limit on making a claim?