Contingency Fee Services for computer statement errors
NABC strongly recommend services which charge a fee rather than a percentage. The argument Even 50% is more than I could have recovered without help may be true. But there are a number of hazards in relying on an unknown firm to carry out the calculation and recovery working on the basis of a percentage fee on recovery.
- Percentage fees are never recoverable from the bank or institution which made the original error.
- If a claim is based on a contingency fee, a bank or building society may want to re-check figures very carefully to ensure that the claim is correct. (After all, the bigger the claim, the bigger the percentage.) This can delay payments.
- Firms might put forward a simple claim so that their own share of a smaller settlement will be paid quickly. Some large claims can take a long time to resolve. Complicated claims may be dropped if a quick recovery seems unlikely.
- Important technical errors might be missed through lack of expertise.
-There is no professional or supervisory body protecting customer interests. Firms working on percentage usually also insist on handling the claim and by-pass the customers own qualified professional advisers.
- It is sometimes better to accept concessions instead of a cash settlement. An interest checking firm may not wish to agree to such an offer, or could still insist on being paid their full percentage.
- Finally, a firm aggressively seeking a quick cash recovery for its own interests can permanently damage a customers relations with its bank or building society
Fees on the other hand can always be recovered as part of a claim. Professional costs incurred in proving an error are recoverable along with the error.
If an overcharge is identified and agreed, the actual cost of checking the account is zero.
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