If we are successful in obtaining an offer or payment of Compensation, then you pay us a Success Fee which is calculated based on the amount of Compensation your lender offers per credit agreement. The table below details the Success Fee percentage applicable to different bands of Compensation, and the maximum total Success Fee for each compensation band
Compensation
|
Success Fee percentage
|
Maximum fee charge
|
£1 - £1,499
|
30%
|
£420
|
£1,500 - £9,999
|
28%
|
£2,500
|
£10,000 - £24,999
|
25%
|
£5,000
|
£25,000 - £49,999
|
20%
|
£7,500
|
£50,000, or more
|
15%
|
£10,000
|
The percentages and amounts in the table above are exclusive of VAT, which is charged at the prevailing rate
If you have an outstanding balance with your Lender they may use all, or part of, your compensation to pay this outstanding balance meaning that you may not receive any cash “in hand”. In this event, our Success Fee will still be calculated against the full compensation amount
Example 1: If your Lender makes an offer of £1,000 compensation and you have no outstanding balance with the Lender, your Lender will pay us £1,000. Of this, £360 will be deducted to pay our Success Fee and VAT, and £640 will be paid to you
Example 2: If your Lender makes an offer of £1,000 compensation and you have an outstanding balance of £800 with the Lender, your Lender may use the compensation offered to pay the outstanding balance meaning they will only pay us £200. We would use this £200 toward our Success Fee and VAT, which would leave a balance of £160 payable by you