Insurance advocate seeking cut from Government on-sold payouts

Liz McDonald, The Press, Jan 28 2021

Homeowners relieved at finally being paid to fix botched quake repairs are now battling a claims advocate threatening to sue them.

They are among more than 3000 Canterbury property owners who qualified for the Government’s “on-sold” payout scheme after unwittingly buying inadequately repaired homes.

Now insurance advocate Proclaims Management Ltd, which earlier helped clients obtain payouts from EQC and private insurers, is seeking a cut of their on-sold payments as well, despite clients saying the company had no involvement in the Government payout scheme.

Proclaims has threatened the property owners with legal action, saying it will sue for the “success fee” commission it wants, plus its own legal costs, and interest, if they do not pay.

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Christchurch lawyer Peter Woods, a litigation partner with law firm Anthony Harper, has several clients with payment demands from Proclaims. He believed the company had no right to demand the money, and some homeowners would have to borrow if they chose to pay.

Full story here: https://www.stuff.co.nz/the-press/business/the-rebuild/124001021/homeowners-battle-insurance-advocate-seeking-cut-from-government-onsold-payouts