I tried contacting such a firm in 2019 which showed me some paperwork in Yiddish or some Jewish language and stamped with some Israeli credentials. I was informed to make an initial downpayment of a few thousand euros before they would hear me out. The guy didnt really hear my story or background, he just listened for a while and offered me the service. He would keep getting my incident details wrong . Maybe its because he has a lot of clients or maybe they really cant be bothered. They do not accept % or proportion payment but go for fixed amount payments. They do not accept payment later. They want payment up front. According to the guy, all recovery companies operate like this. They will collect $ upfront before doing anything. And he made it clear they are not lawyers or a legal firm.
Because I had hired a lawyer in my own country before to sue another party and I got my $. Payment to lawer is flexible and up to their discretion. Most of the time, the legal firms in my country do not collect 100% of the payment up front. In this case, this recovery firm is not a legal firm, so I m thinking , maybe they operate differently.
But according to this, guy, I have to pay all the forecasted expenses up front. Later on after the internet phone call , they sent me a contract or agreement in pdf format. Among the lengthy terms, it says, that there is no guarantee , that recovery will be successful and that the agreement is frustrated if the client does not comply or respond or provide certain information or cooperate fully . In short, there are a lot of ways that the contract can be frustrated by the client. I shortened and omitted a lot of the terms , you wont want to read it.
So I researched online, and I came across a lot of examples of frustrated clients who cannot comply or provide certain material because of reasonable reasons or circumstances. In few cases, the recovery firm was looping them infinitely in one full circle in the process or dont respond effectively at all. When you are asking about A, the recovery firm will reply B, or some irrelevant things. In some cases, the firm asked for more money because they said they need to go to the courts as the cfd scammer broker refuse to settle. When the client (us, retail traders) refuse to pump in more money to the recovery firm, the agreement or contracted is nullified or frustrated and the initial upfront money wont be refunded.
So I took a moment to visualise a possible scenario. I pay upfront $3000 euros to this guy from this firm with Israeli paperwork to do something invisible for me as I wont know what is being done at their end. This guy will gather more material from me, ask me do web conference with other parties or obtain other things to strengthen his recovery efforts . If I comply or managed to provide all the things they want me to, I may still have to pump in more $$$ for their effort or forfeit it all. After pumping in more $ for the efforts, I will most probably get an update that it is not succesful after 6 months because according to the contract, there is no guarantee of success like every other legal dispute. Best thing is, I wont even know if they are actually doing anything or just lip service, customer service . When I spoke to this guy , it sounded like a call centre environment with many other people talking in the background.
The guy told me, that if I lost XXXX amount to scammer CFD firms, whats a few more thousand euros anyway?
P/S: When I read the contract, there was no terms or conditions limiting the recovery firm's demand for additional payments. In fact, there was a general clause stating that the client is responsible for any costs arising due to the efforts. There is also a "catch all" sentence which indemnifies the recovery firm fro many things. which I felt was not in my interest because if they are engaged, they have a fiduciary duty to bear these kind of responsibilities which they are shirking. Again, I paraphrase and shorten all this for viewers to read with ease.
You may believe the testimonials and pictures of those claiming to have engaged them and successfully recovering their money. But if you have already lost $ XXX to scammer brokers , you need to really consider the scenario I visualised because the chance of being milked dry like a cow by the recovery firm is REAL and HIGH. Remember, most recovery firms are not legal firms, althought I came across a few that are, and posted their local legal practice ID
If you need me to show u the pdf contract, pm me for it. I wont attach it for all to see.
