The nature of the financial claims market and the products provided means that charging an upfront fee is very common. Some claims management companies will therefore offer a refund of this fee if your claim is unsuccessful. Is this enough?
While scam 'claims management' companies created to take fees, perform no work and disappear 'into the sunset' with clients' money are fortunately few and far between, it is an unfortunate fact that many clients have paid claims management companies upfront fees only for these companies to fold prior to completing the claim process.
How to Avoid Being Scammed
How do you know that the money you pay to a Claims Management Company is safe?
Before paying any money to a Claims Management Company (CMC), first find out what is going to happen to it. Money paid to Grass Roots (Financial) Ltd, whether in respect of a Claimant Claim or Debt Management, is paid into a Client Account.
The protection of clients' money is of fundamental importance to Grass Roots (Financial) Ltd. You should therefore be aware that whether you are 'getting back on track' using our Debt Management services or making a claim utilising our Claimant service, we will always maintain the Client Account in strict accordance with both the Client Account Rules 2006 issued by the Ministry of Justice and also the Debt Management Guidance as issued by the Office of Fair Trading in September 2008.
Service Fees are always paid into our Client Account, where they will remain until such a time as they are refunded (for example, if a claim is unsuccessful) or withdrawn following a settlement, award, compensation or notification of an unenforceable agreement.
Very few claims management companies will pay upfront fees into a client account and unfortunately, should the company hit hard times, it will be very difficult to make refunds even if promised. Even worse news, should a company fold having spent your upfront fee then, as a consumer, you are likely to be a long way down the administrator's list for payment.
