Change of Fee Rate
As of 10th July 2018, Red Star changed the fee rate on successful PPI complaints to 20%+VAT of the gross offer. All clients who signed up on or after this date have entered into an agreement with fees at this rate. For all clients who signed up to Red Stars service prior to 10th July 2018, the rate charged is 35%+VAT of the gross offer. Although the listed fee rates on our website now state the current rate of 20%+VAT, all fees charged will be at the rate agreed in the Terms of Business upon sign up.
All clients who entered into an agreement, prior to 10th July 2018 will still be charged at their agreed rate irrespective of the date the invoice is raised.
Please note that the Terms of Business are agreed to upon completion of the initial sign-up to Red Star service. Any subsequent documentation completed or signed making reference to agreement to the Terms of Business is in reference to said Terms initially signed and sent to you.
PPI Fees Example
Example 1: No arrears present
| Sum Recovered* | £1,000 | £3,000 | £10,000 |
| Our Fee @ 20% | £200 | £600 | £2,000 |
| VAT @ 20% | £40 | £120 | £400 |
| Total Fee Payable | £240 | £720 | £2,400 |
| Total Money Direct to You | £760 | £2,280 | £7,600 |
Example 2: Arrears present. Potential for offset
| Sum Recovered* | £1,000 | £3,000 | £10,000 |
| Arrears Present | £1,000+ | £3,000+ | £10,000+ |
| Our Fee @ 20% | £200 | £600 | £2,000 |
| VAT @ 20% | £40 | £120 | £400 |
| Total Fee Payable | £240 | £720 | £2,400 |
| Total Money Direct to You | £0 | £0 | £0 |
| Total Reduction in Arrears Achieved | £760 | £2,280 | £7,600 |
*Please note: If previous liabilities exist, any some recovered may be offset against these existing liabilities. In the instance that the arrears present exceed the sum recovered – you will, where necessary, be liable to pay Our Fee from your own funds.
Example 3: Arrears present: Potential for part-offset
| Sum Recovered* | £1,000 | £3,000 | £10,000 |
| Arrears Present | £1,000+ | £3,000+ | £10,000+ |
| Our Fee @ 20% | £200 | £600 | £2,000 |
| VAT @ 20% | £40 | £120 | £400 |
| Total Fee Payable | £240 | £720 | £2,400 |
| Total Money Direct to You | £0 | £0 | £0 |
| Total Reduction in Arrears Achieved | £760 | £2,280 | £7,600 |
*Please note: If previous liabilities exist, any some recovered may be offset against these existing liabilities. In the instance that the arrears present exceed the sum recovered – you will, where necessary, be liable to pay Our Fee from your own funds.
Cancellation Fees
If you cancel after the 14 day period from when you sign the terms and conditions, a fee may still be applicable (for more information please refer to section 5 of the terms and conditions).
