PPI Reclaiming discussion Part III

tdgooner

dreamer33 wrote: »

There is a time limit however, the time limit does not start until you first became aware of the problem.

Thanks for the response dreamer. I first became aware after reading Martin's article last month (slow on the uptake I know!).

marshallka

masmit wrote: »

marsha i have been selfemployed for over 20 years, if it was me i would not declare it. i have only been checked when ive made mistakes on my self assement. if they did find out you would not get fined i have never been, they just ask for whats owed.

I have found a piece of legalisation where by if a payment is made in Goodwill - ex gratia then you do not pay the tax on the interest anyway so I am OK i think and also not used my own tax code this year so ok again...

Thanks for that masmit...;)

marshallka

tdgooner wrote: »

Thanks for the response dreamer. I first became aware after reading Martin's article last month (slow on the uptake I know!).

Well that is the date that is how the FOS looks at it and sometimes the courts too. Its section 32 of the limitations act...;)

marshallka

tdgooner wrote: »

Hi marshallka, thanks for replying.

It doesn't say final response anywhere on the letter.

I'll write again (using the 2nd letter from Martin's article?) and request a final response.

The date applied - do you mean when I took it out? If so, it was in 2004.

Yes, if that when you took it out. Pity its not 2005 as all sales of insurance were regulated by the FSA. I don't know if you could find out from the FOS if they were members of the general insurance standards council at the time of your loan which would enable you to take this to the FOS..

I would just write a letter again now and ask them for a final response and let us know what they say...

Good luck..

tdgooner

marshallka wrote: »

Well that is the date that is how the FOS looks at it and sometimes the courts too. Its section 32 of the limitations act...;)

Excellent, thanks!

tdgooner

marshallka wrote: »

Yes, if that when you took it out. Pity its not 2005 as all sales of insurance were regulated by the FSA. I don't know if you could find out from the FOS if they were members of the general insurance standards council at the time of your loan which would enable you to take this to the FOS..

I would just write a letter again now and ask them for a final response and let us know what they say...

Good luck..

I see. I will have a look with the FOS then, but send a reply today anyway requesting a final response.

I'll reply on here with any comeback. Thanks again for the help

Gurkhaman_Swaroop

Hi, Di, Marshallka and all,

Here I am again, this time to share some good news. My bank has agreed to refund my PPI after my second stage letter. Here's what they said: "I'm sorry you remain unhappy following my response of 24 November 2008. I believe I provided a detailed and honest reply to your concerns about the sale of Personal Loan Protection Plan (PLPP) and I am only disappointed that you do not agree.

That said, I confirm we uphold the overall position detailed in my last letter and do not agree the policy was mis-sold. However, first direct is mindful of further management time and irrecoverable costs we may incur, given the current climate, in relation to such claims.

Therefore, for those commercial reasons alone, and without any admission of liability whatsoever, we are prepared to make a payment to you in the sum of £xxxx,xx in full and final settlement of your claim."

Credit where it is due, thanks to first direct for such a speedy resolution of my claim. One thing I fail to understand is why do these big banks make people go through such stress before acting?

The final payment includes 8% Statutory interest of £1,102.49, do I have to pay tax on this amout (Marshallka)? It seems unfair because this has occured through no fault on our part.

Marshallka > good luck with the blood results tomorrow.

Di > I hope and pray for improvement of your situation. Take care all. Got to go on the school run.

marshallka

Gurkhaman_Swaroop wrote: »

Hi, Di, Marshallka and all,

Here I am again, this time to share some good news. My bank has agreed to refund my PPI after my second stage letter. Here's what they said: "I'm sorry you remain unhappy following my response of 24 November 2008. I believe I provided a detailed and honest reply to your concerns about the sale of Personal Loan Protection Plan (PLPP) and I am only disappointed that you do not agree.

That said, I confirm we uphold the overall position detailed in my last letter and do not agree the policy was mis-sold. However, first direct is mindful of further management time and irrecoverable costs we may incur, given the current climate, in relation to such claims.

Therefore, for those commercial reasons alone, and without any admission of liability whatsoever, we are prepared to make a payment to you in the sum of £xxxx,xx in full and final settlement of your claim."

Credit where it is due, thanks to first direct for such a speedy resolution of my claim. One thing I fail to understand is why do these big banks make people go through such stress before acting?

The final payment includes 8% Statutory interest of £1,102.49, do I have to pay tax on this amout (Marshallka)? It seems unfair because this has occured through no fault on our part.

Marshallka > good luck with the blood results tomorrow.

Di > I hope and pray for improvement of your situation. Take care all. Got to go on the school run.

Wahoooo, great news for you and all in time for Christmas ey!!!!

As regards the statutory interest if they are repaying by GOODWILL as they are I found this in a document from HMRC so I would say "no". Have a read yourself just to be sure..


Ex-gratia or voluntary payment: It is sometimes suggested
that an interest addition is not taxable because it, or the
compensation on which it is calculated, is paid “ex-gratia” or
voluntarily. We accept that a truly voluntary payment cannot
be interest, even if described as such, because the essential
feature of an entitlement to it is absent. In practice, however,
we consider it will be extremely rare for any payment arising
from claims that a financial product has been mis-sold to be
truly voluntary, since the redress is given in consideration of
the complainant giving up a right of action.

http://www.hmrc.gov.uk/bulletins/tb72.pdf




Excellent and thanks to you too...:beer: :j

masmit

marshallka wrote: »

I have found a piece of legalisation where by if a payment is made in Goodwill - ex gratia then you do not pay the tax on the interest anyway so I am OK i think and also not used my own tax code this year so ok again...

Thanks for that masmit...;)

yes marsha think your right with the goodwill, but i cant honestly see how they can charge 20% of 8% interest accrued. if we are supposed to be put back in a position where we had no ppi,the 8% is compensation for not having the money & if we had left this money in the bank what tax would you pay then

marshallka

masmit wrote: »

yes marsha think your right with the goodwill, but i cant honestly see how they can charge 20% of 8% interest accrued. if we are supposed to be put back in a position where we had no ppi,the 8% is compensation for not having the money & if we had left this money in the bank what tax would you pay then

It is bad but all the legal bits are here...if we left the money in the bank we are taxed on the interest received aren't we...I know I do not have to pay as this was goodwill but even the FOS and co-op think we do...

Here is what i received from the adjudicator today

The payment to Mrs M will be made gross and she will need to declare this to her local Tax Office if she is a tax-payer, which is what we advised her in our letter of 2 December 2008.
With regard to Mrs Ms comments about no tax being due on the payments, I can advise that the offer to refund PPI premiums was made as a gesture of goodwill, however, any payment made in respect of interest is not classed as a goodwill payment and is liable to basic-rate tax. I don't understand Mrs s comment about never seeing anyone being taxed on statutory interest as all interest payments are liable to basic-rate tax."

http://www.hmrc.gov.uk/bulletins/tb72.pdf

Something should be done about it..:mad: