What about loan write-offs

What about loan write-offs?

Will someone just tell me what the deal is with write-offs? Should I be referring my clients to get their loans written off? Are they a con? Will it damage my brand and reputation? Will I make any money? Will client be in a better position? How long will it take? Good questions to ask and sadly the feeding frenzy often over takes the facts.

The Ministry of Justice published a statement a couple of weeks ago stating that they were concerned about mis-leading statements about the success of credit card/loan write-offs and would be clamping down on companies that find themselves under this ‘banner’.

Some Key facts

Some clients are winning write-offs and good for them. No one feels much sympathy for the banks write now.
Only a small percentage of cases are being won. Maybe as low as 1 in 10. It is certainly not the ‘floodgates’ that some describe hence the ‘clamp down’ by the Justice Minister.
Some might argue that the only people making money are those charging high upfront fees from the client. Another thing, why do No Win, No fee on everything else but not this? Some might suggest that it is because they are not too confident about winning.
If a client pays an upfront fee and doesn’t win or even is forced to wait 18 months to find out, they will blame whoever started the ball rolling – sadly sometimes this is the broker.
Incredible opportunity – if you are privy to a client’s circumstances and perhaps even have a bundle of old loan agreements you will know whether they have PPI. If so, they may very well have been mis-sold. This is a ‘no brainer’. Why not refer the PPI element onto a reputable company on a strictly No Win, No fee basis, so that you are guaranteed your commission (average £100 in average of 161 days), and your client gets a refund – they may love their referrer after all.

In a Nutshell

Only refer your clients to a company that is confident enough to work on a No Win No fee basis with No Upfront fees.
Help all your present and past clients with PPI. Every loan agreement with PPI is a very possible claim. Don’t let it go to waste – your clients need help. Refer everyone on to our preferred partner Claims Financial.