Red Star Financial Management Ltd

Terms of Service

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 the 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: [email protected]

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 Client’s 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, including any complaint, cause of action, redress opportunity or potential entitlement to compensation arising from a regulated motor finance agreement. ‘Redress/Settlement/Offer’ means the total monies and the full value of benefits offered by the Third Party whether as compensation, a gesture of goodwill or otherwise. ‘Letter of Authority’ is the document providing your authority for the firm to act on your behalf. ‘FOS’ means the Financial Ombudsman Service. ‘FCA’ means the Financial Conduct Authority.

Duration

This agreement will remain in effect 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 us 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 a claim, ascertain the basis of a claim and investigate the merits of the claim. Where a claim can be identified, we will inform you of the prospect of success prior to presenting the claim, then submit a claim to the Third Party on your behalf.
  • 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 required at particular stages of the claim(s) process, including 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 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

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 (the current rate of VAT is 20%).

The service fee is based on the gross amount of compensation awarded. The fee illustrations are not to be taken as an estimate of the amount likely to be recovered for you. If you have any outstanding liabilities with the Third Party, any damages, compensation or settlement monies might, in certain circumstances, be offset against those outstanding liabilities and you will, where necessary, need to pay our fees from your own funds.

Our fee(s) become due and payable within 10 days of receiving payment of redress/compensation from the Third Party. In respect of any unpaid invoices, we may at our discretion offer you a payment plan. Alternatively, we may commence payment proceedings to obtain the amount due. Should payment recovery proceedings commence, interest on the unpaid amount of 8% per annum may be charged.

Conclusion of Your Claim

  • We will promptly notify you of the outcome of your claim(s) using your preferred contact method(s).
  • 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.
  • If your claim is successful, your compensation may be applied as part of your bankruptcy, insolvency, other form of debt arrangement or arrears with the Third Party and may not be paid directly to you. You will still be liable for our success fee(s).

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 claims 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.

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 you can use the cancellation form appended to this agreement or available from our website.

Termination

You can terminate this agreement at any time after the 14 day 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.

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.
  • 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 you have ever been declared bankrupt, are subject to a bankruptcy petition, are or have been subject to an individual voluntary arrangement, a debt relief order, or any other similar process or arrangement, including sequestration.

Governing Law

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

Complaints

We are committed to delivering excellent service. If you are dissatisfied, please contact our Dedicated Complaints Handler at St Georges House, Peter Street, Manchester M2 3NQ, by telephone on 0161 834 5333 or by email at [email protected]. We will respond in accordance with our Complaints Handling Procedure, available on request or from our website.

Financial Ombudsman Service

We are subject to the Financial Ombudsman Service’s jurisdiction. Further information about the FOS can be obtained at 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.