Agreement for referring PPI Claims

Transcription

1 Agreement for referring PPI Claims THIS AGREEMENT is made the... day of between: (1) Credit Agreement Ltd a company incorporated in England and Wales and whose registered office is at Document House Blakewater Road Blackburn BB1 5QR ('the Principal') and (2) xxx a company incorporated in England and Wales and whose registered office is at XXXXX ( the Introducer ) The Principal is regulated by the Ministry of Justice in respect of regulated claims management activities CRM13151 (particulars of its registration are recorded on the website This agreement covers the referral of leads and signed cases from the introducer to the Principal for the purpose of seeking the refund of Single Premium Payment Protection Insurance together with interest and statutory interest on behalf of customers known as a claim. This agreement supersedes all other agreements signed by the introducer. IT IS AGREED as follows: Definitions In this agreement, the following words shall have the following meanings: PPI means Payment Protection Insurance. Lead means a customers details who is keen to discuss proceeding with a valid claim. Cases means a fully packaged PPI claim including all supporting documentation signed by the customer to enable it to be processed through to completion. Customer means the person whose claim we processing. Commencement Date means the latest date upon which this agreement is executed by both the Principal and the Introducer. 'Services' means the services currently provided by the Principal for the customer as the Principal may notify to the Introducer. Service Charge means fees charged to the customer upon successful completion of their claim. Signed documentation means all necessary documentation and information required to be signed and submitted to the customer to enable the Principal to process a claim. Signed terms and conditions means the terms and conditions of accepting to proceed with a claim signed by the customer. Award means financial settlement of a PPI Claim. This includes the amount paid to the customer plus and amount paid into the loan or to pay off any balance or arrears on any other loan by the lender. Settlement of claim means the claim has been won by the customer. Services The Principal appoints the Introducer from the commencement date of this agreement for the purpose of pursuing Claims for processing through the Principal.

2 The Introducer will generate claim enquiries either directly or through its approved marketing sources. The Principal will process claims directly with the lender or broker. It will keep customers informed of progress. It will inform customers of all offers and recommend if they should be accepted. It will endeavour to collect the contingency fee charged to the customer and disburse the fee in line with this agreement. Neither the introducer or the Principal can guarantee the success of any claim. Introducer Obligations The introducer shall: - Be totally responsible for any sub introducer or marketing methods agents or contractors engaged in activities in connection with business submitted to the Principal. Be completely responsible to ensure its staff and any sub contractors will explain all processes, procedures and costs clearly to the customer without misleading the customer in any way. Any fees charged to the customer by the Introducer for the purpose of auditing, assessing, signing or advising the customer will be paid directly to the Introducer. Inform the Principal of its fee charging structure to customers and any amendments to it. The Introducer is responsible for the fees charged and any refunds due to the customer. Use best endeavours to ensure all dealings with the customer is in a compliant manner. Explore the validity of a potential claim and explain the Principal s services to each customer. Explain quantum and timescales to manage customer s expectations. Fully explain the fees and charges to each customer and when they become payable. Adapt to changes in the Principals strategy or terms and conditions or costs or claim types as instructed by the Principal from time to time. Act towards the Principal dutifully and in good faith and comply with all primary and secondary legislation applicable to regulated claims management activities including, without limitation, the Conduct of Authorised Persons Rules 2007, The Solicitors Introduction and Referral Code 1990 and the Data Protection Act Clearly represent itself to the customer as the Introducer on behalf of the Principal. At all times during the continuance of this agreement and after its termination; keep all restricted information confidential and accordingly not disclose any restricted information to any other person. Establish the financial status of the customer during the initial process. Where customers have entered into an arrangement with creditors, obtain information about any arrears on all loans and or overdraft facilities relating to the Lender the proposed claim is against. Details of these arrears must be presented with the lead or packaged case to ascertain if there will be sufficient funds to meet the service charge. The Introducer shall NOT:- Make unreasonable statements to mislead the customer.

3 Use any restricted information for any purpose other than the performance of its obligations under this agreement during the continuance of this agreement and after its termination. Charge any fee to the client which are not seen to be reasonable for the service which is being provided. Refer a customer who is currently in an IVA or Bankrupt. Charge any cancellation fee to the customer. Principal obligations The Principal shall:- Be registered and licensed with the Ministry of Justice to handle financial claims. Act towards the Introducer dutifully and in good faith and comply with all primary and secondary legislation applicable to regulated claims management activities including, without limitation, the Conduct of Authorised Persons Rules 2007, The Solicitors Introduction and Referral Code 1990 and the Data Protection Act Only use customer information provided by the Introducer for the purpose of which it has been referred, in line with the Data Protection Act Customer records will be kept secure and confidential during the course of the claim and will be retained following completion of the claim. Provide a professional and compliant service to our mutual customers. Provide the Introducer with regular updates in relation to the referred business. Provide prompt payment to the Introducer upon receipt of service charges from clients in line with details set out in this agreement (Payment of Fees). Clearly represent itself as the Principal on behalf of the Introducer and the purpose of the referral. Notify the Introducer within the specified period of any changes or termination of this contract within the period specified in this agreement (Termination) On leads received the Principal will contact each customer immediately, establish a claim, explain all fees and charges and gain commitment to proceed. It will issue documents to the customer. On all cases received it will maintain contact with the customer throughout the claims process. It will commence proceedings and negotiations with the lender to obtain a satisfactory offer of settlement. The Principal shall not:- make unreasonable statements to mislead the customer Use any restricted information for any purpose other than the performance of its obligations under this agreement during the continuance of this agreement and after its termination. Charge any fee to the client which are not seen to be reasonable for the service which is being provided Process a PPI claim for a customer where we have been notified that they have entered into an IVA or have been made bankrupt Documents The customer may sign either the documentation provided by the Introducer or the Principal. Where the Introducers documents are being used, the customer must also sign an authority to allow the Principal to act on behalf of the customer.

4 Non-Competition, Confidentiality and Non-Solicitation Both the Introducer and the Principal agree not to entice or solicit or attempt to entice or solicit away from the Principal or Introducer any employee or officer or sub contractor of the Principal or Introducer. Supervision by Principal The Principal may contact customers or Introducers from time to time to ensure that the nature and extent of the services have been fully and properly explained to the customer by the Introducer and it shall be at the complete discretion of the Principal whether the Principal shall invite or advise a customer to cancel or rescind any services agreement executed by the Introducer with a customer. The Introducer agrees to the Principal conducting compliance visits and agrees to fully co-operate to ensure all business is conducted in a compliant manner in line with Ministry of Justice guidelines. Indemnity The Introducer shall indemnify the Principal against all claims, costs, demands and losses which the Principal may suffer or incur arising out of any failure on the part of the Introducer to comply with the obligations of the Introducer under this agreement including, without limitation, any failure on the part of the Introducer to comply with the Ministry of Justice Code of Conduct for Authorised Introducers or with the guidance and procedure for the marketing and selling of services. Sign Up Service The Introducer or its sub contractors may use the Services of Quickdox Ltd. It will engage in its own agreement with Quickdox and be responsible for payments directly with Quickdox in line with their agreement. Charges and fees payable by the client. The Introducer can charge the customer a reasonable audit fee for the service being provided. Upon successful payment of any claim or agreed cessation of customers payments to a lender, the customer will pay to the Principal a service charge as noted within the signed terms and conditions, typically 25% +VAT of the award (this % may vary). The Principal will distribute the service charge in accordance with this agreement. Types of referrals There are three different types of claim referrals to the Principal. Each has a different percentage of the service charge payable to the Introducer: 1. Lead - The introducer will collate the information from the customer in a compliant manner, obtain authority for the principal to contact the customer and supply the Principal with details in relation to potential PPI claims. The principal will contact the customer identify any potential claim(s), obtain a commitment to proceed with the claim, collect all signed documentation and process the case. The Introducer will receive 25% of the service charge which the principal receives upon a successful claim. 2. Signed Case The Introducer will enter into an agreement with the client in relation to the PPI claim(s), fully explain all procedures, terms and conditions, and fees, then collect all signed documentation. The fully packaged case including all necessary questionnaires, terms & conditions and the signed authority form from the client will be processed by the Principal or Third Party Solicitor. The service charge received will be split equally between the Introducer and the Principal. 3. Signed Case with payment The Introducer will complete all procedures described above on a signed case and in addition pay the Principal a fee of 50 plus VAT for each packaged case referred. The fee must be submitted with the case before any processing will commence. The Principal will retain 20% of the service charge received upon a successful claim (subject to a minimum charge of 100 plus VAT). The Introducer will be paid the remainder of the service charge received. The 50 plus VAT payment will not be refunded to the introducer in any circumstances.

5 The Principal may change the rate of the service charge to customers and percentage split of these paid to the Introducer by agreement and on 14 days written notice to the Introducer. Any change in the rate of fees shall not apply to any claims already accepted by the Principal at the date of the notice. Payment of fees The Principal shall pay to the Introducer as follows: All service charges received will be recorded onto the Principals operating system. A report will be produced for each week finishing at midnight on the Sunday identifying payments due to the Introducer for the previous 7 days. This report will be ed to the Introducer. The introducer will send the Principal an invoice for this amount. The Principal will pay the amount upon receipt of the invoice by BACS. It shall be the primary responsibility of the Introducer to procure and (as required by the Principal) to assist the Principal in procuring the payment by the customer of the service charge. The Principal shall not owe any duty to the Introducer to recover any fees from the customer nor shall the Principal incur any liability to the Introducer for any service charge in circumstances where the Principal has not received fees from the customer. In the event that a customer is due a refund of service charge for any reason, the Introducer agrees to refund the full service charge paid to the Introducer upon demand. The Introducer agrees to pay all the Principal s legal fees and other costs in the event that the Principal needs to collect any and all claw backs due from the Introducer. Should the customer not receive sufficient funds to pay the agreed service charge upon settlement of the claim, the Principal will pay the introducer the agreed percentages relating to the claim as agreed in Types of referral on the amount received by the Principal. Both the Introducer and the Principal will agree whether or not to peruse the customer for the remaining unpaid balance of the service charge due. In the event of the service charge is paid directly to the Introducer or the Introducers sub contractor, the Introducer agrees to pay the Principal its agreed percentage of the service charge detailed in Types of referral. The Introducer agrees to pay this amount within 7 days of receipt. The Introducer agrees the Principal may offset and deduct any claw back from any future payments to the Introducer. Claim against the lender or broker We will seek to claim against the lender or broker an amount equivalent to the full PPI single premium originally added to the loan, together with all interest paid on this premium to up to the date of settlement. On this total amount we will also seek statuary interest (currently 8%) compounded annually from the date the loan commenced up until the date of settlement. On loans that have already been redeemed, we will seek the above and in addition an amount equivalent to any settlement charges on the PPI premium. The introducer agrees to make customers fully aware of the details of claim. Disbursement of Awards The introducer agrees to make customers fully aware of the details of disbursements of the awards customer The introducer acknowledges and accepts that in the majority cases, when a case settled, the customer will not receive the full amount of the award. The lender will deduct from the award any arrears on the loan or arrears on other loans, any overdraft balance on related loans the customer has with the lender. The remaining balance on the PPI premium is usually paid directly into the loan to reduce the loan balance and subsequently reduce the monthly payments payable on the loan. The remaining balance is usually paid directly to the customer not to the Principal.

6 Unenforceability of the loan The Principal will audit any PPI claim and will identify whether the case falls within criteria to be assessed for unenforceability under the consumer credit act In this insurance the Principal would contact the client to advise if this route is also available to them. If the customer decides that they would also want to pursue the unenforceability of the loan, we will refer their case to a solicitor on our approved panel. We will not pass cases onto a solicitor for unenforceability alone where no PPI exists on the agreement. The Principal will advise the client to continue making their repayments as per their agreement and that they must discuss this in detail with the solicitor to whom their case has been referred. Neither the Principal or the Introducer should inform the client to cease making their loan repayments. Data Protection Both the introducer and the Principal will maintain registration at the commissioners office under the Data Protection Act. VAT VAT will be charged to the customer at the prevailing rate. All commission splits will be made including VAT where the introducer is VAT registered. The introducer is responsible for paying their own VAT. Term This agreement will end upon termination. Termination Either party may terminate this agreement with 30 days written notice. Either party may terminate this agreement immediately without notice if either party:- Is in substantial breach of this agreement; or Is in substantial non-performance or in substantial neglect of his duties under this agreement; or Is engaged in activities, whether by commission or omission, which amount to dishonest conduct; or Goes into liquidation or becomes bankrupt (or the equivalent situations). Payment of commission on termination On termination of this Agreement, the Agent shall be paid fees (which for the avoidance of doubt shall include any success fees) on each service agreement executed by the Agent with a customer up to the date of termination. Limited Status The Introducer shall not enter into any contracts (save for the services agreements), make any representation or give any warranty for or on behalf of the Principal or pledge the credit ofthe Principal. The previous sentence shall not prevent the Agent from communicating the terms and conditions for the services or discussing with customers those terms and conditions, subject always to making it clear to customers that the Agent has no authority or ability to vary or alter them or to enter into any contract other than the services agreement.

7 Signed as a deed on behalf of being the Introducer Full Name Date Signed as a deed by (or on behalf of) of Credit Agreement Ltd being the Principal Full Name Office Date