Secret Commission GE money/Igroup

[ginja_ninja]

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?

[citizenB]

I will try and find someone who can help with this.

[ginja_ninja]

Thankyou, much appreciated! I am still chewing through some 31 page threads from 2009 on here, I hope when I get to the end there are some happy outcomes!!

[renegadeimp]

Sounds like a shady company that prob got info from the lender as a matter of course, then took it on themselves to do a reclaim. Hoping yould fall for it and get their 35%.

[ginja_ninja]

I tried to look into the solicitors relationship with GE a few months ago when this all kicked off and I found that they were on their panel of approved conveyancers, so I would have thought there would be a conflict of interest acting for me AND the company I have a potential claim against? I checked again today to get more info and there is nothing.... turns out that GE Money have sold off their money lending sector and are sticking to other branches of their business.

 

 

The solicitors reduced their fee to 25% + whatever legal costs they could claim - which turns out to be £480.

[renegadeimp]

Its beginning to sound like GE have some kind of investment in them. So they give the reclaim but take most of it back themselves. Especially if theyve done it of their own accord. I wouldnt put it past them to do it whatsoever.

[dx100uk]

ambulance chasers ignore

 

 

 

 

ge money wer fined by the FSA [now the FCA]

regarding this

but I don't know of any cases whereby anyone actually got anything back.

 

 

prob find you've gor PPI/MIF/unwanted insurance to reclaim mind.

 

 

sar time if every want to go anywhere with it girst

[citizenB]

On the other hand, it is £800 you weren't expecting and have not had to invest any time in reclaiming. Apparently this is a specialised area so it might be worth considering accepting

 

I guess you could point out the conflict of interest to them !

[Hadituptohere]

Any more news on this please, really interested in this as I took out my mortgage in 2006 with GE through Igroup and payed brokers fees added to the lenth of the mortgage.

 

Hadituptohere

[renegadeimp]

They dont do anything you cant do yourself, and you get to keep the money of you do it yourself.