Terms

These Terms of Service (“Terms”) set out the basis on which Red Star Financial Management Ltd (Red Star)(“we”, “us”, “our”), will identify, advise,  investigate and represent you (“the client”) to lodge a motor finance claim on your behalf against relevant Third Party. Please read them carefully  before signing your agreement with us. By instructing us to act on your behalf you are deemed to have accepted these terms.

CONTACT DETAILS

Registered Name: Red Star Financial Management Ltd
Post/Visit: St Georges House, Peter Street, Manchester M2 3NQ
Telephone: 0161 834 5333
Email: hello@redstarfm.com 

Red Star is a claims management company. Red Star is authorised and regulated by the Financial Conduct Authority FRN: 831588

DEFINITIONS

‘Third Party’ means the Clients Motor Finance Provider/Lender/Bank/Broker to whom the Letter of Authority (LOA) is  addressed.
‘Claim(s)’ Means a request for compensation or redress against a mis sold motor finance agreement.
‘Redress/Settlement/Offer’ means the total monies and the full value of Benefits offered by the Third Party whether as compensation, as a gesture  of goodwill or otherwise arising from any claim made by Us on behalf of the Client for complaints about a regulated car finance agreement or any  reduction in money owed by you to the Third Party as a result of the firms actions. Where such an offer is revised on appeal, then the higher amount  shall be used in order to calculate the amount of the Compensation, provided that the client(you) are still under contract and has not previously  exercised their right to terminate the contract. The total amount awarded under the introduction of any consumer redress scheme by a market  regulator in relation to the regulated finance agreement(s) to which this contract relates.
‘Letter of Authority’ The document to be sent to you providing your authority for the firm to act on your behalf.
‘FOS’ means the Financial Ombudsman Service (hereafter referred to as the FOS’).
‘FCA’ means the Financial Conduct Authority.

DURATION

This agreement will remain in effect until: 

• It shall persist until the settlement of the claim(s) and our fee (s) is/are paid unless you cancel or terminate the agreement with us. 
• Where the claim is rejected by a Third Party and or a Statutory Ombudsman (FOS) this agreement shall persist to enable use to rely on this agreement  to contact the client under the contract lawful basis of the UK General Data Protection Regulations.  
• We may terminate the agreement if you breach your responsibilities or if we determine there is no valid claim.

SERVICES

The services that We will provide are as follows: 

• A soft credit search will be undertaken initially to establish if a relationship has existed or exists with a motor finance provider. The soft credit search  will be undertaken by Valifi Limited (FRN1021455). This will not leave a mark on your credit file and will have no impact on your ability to obtain credit.  
• Undertake a data subject access request where you do not know the name of the relevant Third Party or have sufficient information surrounding the  purchase of the vehicle(s). 
• The information will be collated and reviewed, we will seek to identify if a claim, ascertain the basis of a claim and investigate the merits of the claim.  • Where a claim can be identified, inform you of the prospect of successes prior to presenting the claim to the Third Party.  • Submit a claim to the Third Party on your behalf. 
• Liaise with the Third Party post submission of the claim where necessary until settlement of the claim. 
• Liaise with the Third Party post submission of the claim(s) to obtain further information where required and to communicate material developments  about the claim(s) until settlement. 
• Advise you about any particular steps that are required to be taken at particular stages of the claim(s) process. This includes advising you about the  possibility of escalating the complaint to a statutory ombudsman if rejected by the Third Party. 

Our service does not extend to representing you in court. We can however recommend to a law firm on our panel who can advise you of the legal  process of litigating a claim. We may receive a fee for this introduction, but this cost will not be passed onto you.

SUCCESS FEES

cancel your claim outside the 14-day cooling off period you may be required to pay us a termination fee, this is explained below under Termination  Fees.  

If your claim is successful, we will charge you a fee that is in line with the Financial Conduct Authority Fee Cap, this will be between 18- 36% including VAT,  the amount you pay will be dependent on the level of redress you receive. VAT is chargeable on each service (the current rate of VAT is 20%). 

Below are several worked examples that illustrate how our service fee is applied for any offer of compensation that is made within each of the 5 fee  bands:

CONCLUSION OF YOUR CLAIM

1. We will promptly notify you of the outcome of your claim(s) using your preferred contact  method(s).  
2. If your claim is unsuccessful or the Third Party does not make a reasonable offer of Compensation, we may seek your instruction to refer your  claim(s) to the Financial Ombudsman Service.  
3. If your claim is successful your compensation may be applied as part of your bankruptcy, insolvency, other form debt arrangement or arrears with the  Third Party and your compensation may not be paid directly to you. You will still be liable for our success fee(s). 

OUR OBLIGATIONS TO YOU

To exercise due skill, care and diligence in providing the claims management services under this  agreement. Notwithstanding, We do not guarantee the client a successful claim; 

To keep the client informed about the progress of the claim; 

To communicate to the client information received by the Firm on behalf of the client from Third Party/parties for the attention of the client as promptly  as possible and will endeavour to do so within 10 working days;  

To communicate information received by the client for the attention of the Third Party/parties as promptly as possible and will endeavour to do so  within 10 working days;  

To act in the best interests of the client; and  

To be truthful and honest in all its dealings with the client 

To communicate any further information about the current FCA investigation regarding motor finance claims. There is currently a pause for lenders/ Third Parties to respond to complaints to the 4 December 2025. This may change following the Supreme Court’s decision regarding motor finance  claims and any changes the FCA with how such complaints should be dealt with. The Supreme Court’s decision is expected in July 2025. The FCA will  publish their response to this decision within 6 weeks of the Supreme Court’s decision. 

RIGHT TO SHOP AROUND

You have a right to shop around (e.g. seek further advice or find someone else to make a claim on your 

behalf). You don’t have to use a claim management company to make a claim about your motor finance claim. You can do this yourself by contacting  your motor lender for free and where your complaint is not successful you have the right to escalate it to the Financial Ombudsman Service. Please  note this is subject to any time limits within which a claim may be made.

GOVERNING LAW

These terms are governed by the laws of England and Wales. Disputes shall be subject to the jurisdiction of the English Courts.

YOUR RESPONSIBILITIES

To enable us to act on your behalf effectively you agree to: 

• Provide accurate and truthful information
• Supply us with all relevant documentation in a timely manner. This includes documentation showing the Third Party and you had a relationship and any documentation that supports the alleged wrongdoing.
• Cooperate with reasonable requests we make for further documentation.
• Inform us of any changes in your circumstances that may affect your claim.
• Notify us prior to entering into this agreement whether you have any outstanding liabilities owed to the Third Party.
• Notify us if, in Great Britain or in any other jurisdiction, any of the following has occurred or is likely to occur:
  • (a) Have ever been declared bankrupt
  • (b) Are subject to a bankruptcy petition
  • (c) Are subject to or have ever been subject to an individual voluntary arrangement
  • (d) Have proposed an individual voluntary arrangement which is yet to be approved or rejected by creditors
  • (e) Are currently subject to, or have ever been subject to a debt relief order
  • (f) Are or have ever been subject to any other similar process or arrangement which is similar to those listed in (a) to (e) above, including but not limited to sequestration
• Communicate all relevant information to us as promptly as possible.

RISKS OF PURSUING A CLAIM 

The following shows the risks involved in making a

• The possibility of not recovering any cash in hand redress but becoming liable to pay our fees; 
• The possibility, in the case of legal action, of attending Court and giving evidence;  
• If you have outstanding liabilities with the Third Party, there is a possibility that any compensation/redress will be off set against those outstanding  liabilities and the client may still be liable to pay our service fees from own funds;  
• If you reside in Great Britain or in another jurisdiction have been subject to bankruptcy, a debt relief order, an IVA, sequestration or a similar  arrangement the compensation/redress might, in certain circumstances be off set against your outstanding debts; and you will, where necessary, may  still be liable to pay our service fees from own funds.

CANCELLATION RIGHTS

You can cancel this agreement at any time within 14 days without giving any reason and without incurring  any liability.  

You can communicate your cancellation by telephone, in writing, in person, or by email or can use the cancellation form appended to this agreement or  available from our website.  

To meet the cancellation deadline, it is sufficient for you to send communication concerning the exercise of the right to cancel before the cancellation  period has expired.  

TERMINATION

You can terminate this agreement at any time after the 14 days cancellation period.  

We may charge you a termination fee of £50 per hour (including VAT) if you terminate the agreement after the 14-day cancellation period. The amount  charged will be a reflection of the work undertaken by us up to the point of termination. An itemised invoice will be provided.  

We will charge you our success fee if you terminate the agreement after the 14-day cancellation period and after an offer of redress/compensation is  made by the Third Party. 

ASSIGNMENT

We shall be entitled to assign our rights, duties, obligations and/or benefits under this agreement to a Third Party claims handler who will take on the meaning of Trading Name in this Agreement. 

COMPLAINTS

We are committed to delivering excellent service. If you are dissatisfied, please contact us using any of the following methods:

Red Star Financial Management Limited

Complaints Handler: Dedicated Complaints Handler
Post/Visit: St Georges House, Peter Street, Manchester M2 3NQ
Telephone: 0161 834 5333
Email: hello@redstarfm.com

We will respond in accordance with our Complaints Handling Procedure, available on request or from our website.

BREACH

Where either party fails to fulfil its obligations under this agreement, the non-breaching party shall give the breaching party an opportunity to remedy the breach in good time.

Failure by the breaching party to remedy the breach in good time shall entitle the non-breaching party to terminate this agreement without notice and without incurring any liability. The non-breaching party may pursue the breaching party for financial redress due to the breach of contract.

Both parties shall be entitled to terminate this agreement with immediate effect, and without giving the breaching party an opportunity to remedy the breach, if the breach relates to either party’s failure to fulfil its obligations of truthfulness and honesty.

LIMITATIONS OF OUR LIABILITY

We shall not be liable for any costs or losses You incur as a result of:

• Lack of co-operation

• Failure to read and understand the documentation that we have provided to you, where such information is reasonably clear or where you could have taken steps to clarify the information

• Failure to provide us with accurate or up-to-date information within a reasonable timescale

• Delays or loss of information caused by postal methods or email service providers

• Matters that we cannot reasonably control

EXCLUSIONS

We exclude liability to you for any tax liability incurred due to your failure to pay tax on the compensation/offer received. It is your responsibility to fulfil your personal tax obligation. Professional advice should be sought if in doubt. Nothing in this agreement shall exclude our liability in the event of death or personal injury to you resulting from an act or omission of the Firm.

FINANCIAL OMBUDSMAN SERVICE

We are subject to the Financial Ombudsman Service’s jurisdiction (hereafter referred to as the FOS’). Further information about the FOS can be obtained on the following website: www.financial-ombudsman.org.uk/

CONFIDENTIALITY & DATA PROTECTION

We will handle your personal information in accordance with data protection laws. For more details, please refer to our privacy policy. You consent to us sharing your information with Third Parties where necessary to pursue your claim, e.g. “Third Party”, Financial Ombudsman. This is a non-exhaustive list.