OUR OFFICE
St Georges House, Manchester,
M2 3NQ

Terms of Engagement


1. What Red Star Financial Management (the company) Will Do For You:


a) The company will assess your PPI for potential mis-selling. If appropriate The company will pursue on your behalf, a claim for reimbursement/compensation.
b) The company will inform you of any offers that we receive from your lender.
c) The company aim to provide you with a professional and dedicated service and use all reasonable skill and care in processing your claim.
d) The company will always act in your best interests in pursuing the claim and obtaining the best results.
e) The company will assess the reasonableness of any offers in accordance with the relevant regulatory body guidelines.
f) Claim(s) relate to the mis-selling of a payment protection insurance (PPI) policy on any account. Including Plevin Eligible Claim(s) means claims relating to the failure to disclose commission charges following the Supreme Court Judgment in Plevin v Paragon Personal Finance Ltd 2014.


2. What The Company Will NOT Do For You:


a) The company is unable to provide advice regarding the potential risk of cancellation of any PPI policy by the lender after any complaint is logged. We do however strongly suggest that you seek alternative protection for any continued credit agreement that you may have where PPI has been applied.
b) The company will NOT give or offer any financial advice.
c) The company will NOT arrange alternative insurance or payment cover in any such event that your lender may cancel your insurance once a claim is submitted. We must inform you that it is highly likely that your lender will cancel your protection once. The company have submitted a claim. We therefore request that you consider this before we submit any claim.


3. What The Company Expects From You:


a) To provide the company with all the relevant information in relation to your claim, including regularly updating the company of any new address/telephone number(s). The information should be accurate and not misleading.
b) To cooperate with the company including sending any relevant correspondence that you receive in relation to your claim, including informing the company of any verbal contact you may receive from a lender. Not providing this information may result in your claim being delayed.
c) The company will issue Letter of Authority (LOA) forms to you from time to time. It is important that you return these as soon as possible as some lenders expect updated authority on a regular basis.
d) You must inform the company as soon as you receive any offer of settlement from your lender directly.
e) Should you receive any form of compensation directly from your lender the company will invoice you for the fee that will become due. This will be payable within 7 days of the settlement being made.


4. Fees:


a) The company will charge 20% + VAT (24% inclusive of VAT) of the total amount awarded to you. Please note, the redress is calculated prior to HMRC’s deduction (HMRC’s deduction only applies to the additional 8% statutory interest).
b) VAT will be charged on all of the company fees at the standard current rate.
c) If we find that the amount of undisclosed commission involved in the sale of your PPI policy was unfair, you should receive a refund of any undisclosed commission along with the interest that you have incurred on this and in many cases a further interest of 8% on this figure. Fees listed in section 4a will still apply.
d) If no award is made the fee will not be applicable.
e) If you fail to pay the balance within 7 days of receipt of payment, the company reserve the right to charge Interest (in line with the Bank of England Statutory current Interest Rate) and Court Fees if necessary.
f) You may cancel this agreement at any time however the company may charge for any work undertaken. In the event that the agreement is cancelled you may be subject to pay cancellation fees (listed in section 5j).
g) Your Lender may decide to re-investigate your complaint. If this results in your claim being upheld you will still be liable for our fees.


PPI Fees Example


Example A:
Example B:
Compensation includes a future reduction in loan repayments
Example C:
Compensation is used to offset arrears consumer has on credit card or loan

Total Compensation

£3000

Total Compensation:

£3000

Total Compensation:

£3000


Loan Reduction:

£1000

Set of arrears:

£3000


Fees charged @ 20%
£600

Fees charged @ 20%

£600

Fees charged @ 20%

£600


VAT @ 20%

£120

VAT @ 20%

£120

VAT @ 20%

£120


Consumer Pays Firm:

£720

Consumer Pays Firm:

£720

Consumer Pays Firm:

£720


Consumer Is Left With

£2280

Consumer Is Left With

£1280

Consumer Is Left With

£0


(But on reduction in load as it is already paid off in full)

(But a reduction of £1000 in future loan installments)

(but a reduction of arrears of £3000 in their outstanding loan)


5. Cancelling This Agreement:


a) In the event that the company cancels this agreement because the claim is unlikely to succeed, no fee will be payable.
b) There is a 14 day cooling off period in which you may cancel the agreement without any charge. The 14 days begins from the date the company receive your signed agreement.
c) The company may cancel this agreement at any time if there has been a material breach of the contract.
d) In any circumstance other than those described above, the company may charge a fee for the work that the Company has undertaken.
e) These T&C’s encompass any number of claims undertaken by the company on your behalf.
f) Cancellation of this agreement by either party must be in a clear statement such as e-mail, letter or telephone conversation. Alternatively you can complete the cancellation form on our website.
g) You may cancel this agreement at any time however the company will charge for any work undertaken after the 14 days cooling off period as explained in section 4.
h) If you cancel after compensation has been awarded the company reserves the right to charge the full fee.
i) If we recover money on your behalf and you refuse to pay our fees, we have authority to validate your application details with Credit Reference Agencies. We also reserve the right to perform a search if you fail to abide by the terms in this agreement which will assist us in recovering fees.
j) If you cancel the claim(s) after the 14 day Cooling Off Period for any reason the company may impose a cancellation charge which will be reasonable and proportionate to the work done and the costs incurred by the company up to the point of cancellation. This will vary depending on the status of the claim process. If your claim(s) have been sent to FOS, a charge of £60 (including VAT) per claim will be payable. If any manual communication has taken place e.g. outgoing calls, letters, emails to or from you or the company, then a charge of £48 (including VAT) will apply for each claim. If a lender has made an offer of compensation then the full fee (listed in section 4a) will still apply if a customer expresses a wish to cancel.


6. Complaints:


a) Whilst the company strives to offer the best possible service, should you wish to complain, details of our Complaints Procedure is available on our website at www.redstarfm.com/complaints


7. Data Protection:


a) The privacy and security of your personal information is very important to us. Any personal information submitted to us will be subject to the provisions of the General Data Protection Regulation 2016/679 (GDPR) and any legislation enforced within the UK in order to comply with GDPR, unless required to do so by law or a professional body, we will not disclose any personal data to any other person or organisation without the required consent.
b) We want to ensure you that the claimant information will be properly managed, protected and respected. You can be assured any information you provide us will be used strictly in accordance with the terms laid out in this statement.
c) The privacy statement explains how we collect and use the claimant personal information, what choices they have and other important information. You can find our full privacy policy on our website at www.redstarfm.com


8. Other:


a) You are entitled to seek further advice in relation to your claim and to consider what services might be most appropriate to your claim for compensation. In particular you have the right to shop around and you should be aware of the services provided by the Financial Ombudsman Services.
b) This is a legally binding contract and in signing it the Client is accepting the Company’s Terms of Engagement. If the Client is in any doubt concerning the Terms of Engagement, the Client should seek independent legal advice.
c) The Company is governed by UK law.
d) If we identify any additional PPI for any lenders after the initial LOA has been signed, the fees will be based on the date of the original signed LOA, as this is where you had agreed to our Company’s Terms of Engagement.

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