Fears for client refunds as claims company faces uncertain future
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Mortgage brokers fear they could lose out on refunds for their clients following the news that claims firm Credit Issues has entered into a company voluntary arrangement.
The claims specialist is part of The Guardian Financial Group which also owns Guardian Debt Management and is headed by former High Street Home Loans director Gary Forrest.
HM Revenue & Customs issued a winding up order against the Gateshead-based claims company in February, but the firm says this has now been withdrawn. Debts to HMRC totalled £370,000, with Betesh Partnership Solicitors owed £29,321.
The company has entered into a CVA to give it time to pay back some of its debts.
A CVA is a binding agreement between a firm and its creditors about the payment of its debts over an agreed period.
But several frustrated brokers have contacted Mortgage Strategy angry because they are not having any success claiming refunds for cases they have submitted on behalf of their clients.
Credit Issues has told one broker his client’s case has been passed to a firm of solicitors which is assessing whether or not the claim is enforceable.
The company says MJP Justice is now processing all cases on its behalf and it is showing good results on unenforceable claims.
But some brokers are keen to claim refunds for clients who they say have been waiting for months to hear about the outcome of their cases.
One broker says: “I’ve been told that if I want to cancel my agree-ment I will have to write to Guardian Financial Group and if a refund is due it will be passed to the company’s financial administrator for their consideration.”
He has also been told that he is classed as an unsecured creditor which means he may not receive the full amount owed.
Sue Chadwick, office manager at Credit Issues, could only confirm to Mortgage Strategy that the firm is still trading.
Claims firms Cartel Client Review and Ratio Money recently stopped trading.
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Readers' comments (3)
Anonymous | 10 Jun 2010 5:27 pm
Why are they still trading when they haven't been honouring refunds that they said they would pay last November? (Can be backed up with evidence)
As Guardian is the parent company, will they be honouring the client refunds? If not they risk losing thousands of refering brokers for debt management!
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Tim Hammond | 10 Jun 2010 5:27 pm
Why are they still trading when they haven't been honouring refunds that they said they would pay last November? (Can be backed up with evidence)
As Guardian is the parent company, will they be honouring the client refunds? If not they risk losing thousands of refering brokers for debt management!
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Tim Hammond | 10 Jun 2010 5:31 pm
http://www.mortgagestrategy.co.uk/brokers-warned-to-tread-carefully-with-claims-management-firms/180397.article
Credit Issues did warn us but they failed to say they warning us about themselves!!
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