Insurance Premium Tax query

Buns_Mum

Hi all

We're currently awaiting a first response from First Plus about the mis-selling of our PPI.

On doing some further reading through the original loan agreement we noticed in the small print that the amount of the PPI included Insurance Premium Tax at 5%. This was never mentioned at the time of selling and we wondered if this is something that we can add to the list of why we think we've been missold? Additionally it looks as though we've been paying interest on this tax rather than it being a one off payment and just paying interest on the PPI. Can they do this? It certainly doesn't sound very fair.....

Thanks.

di3004

Buns_Mum wrote: »

Hi all

We're currently awaiting a first response from First Plus about the mis-selling of our PPI.

On doing some further reading through the original loan agreement we noticed in the small print that the amount of the PPI included Insurance Premium Tax at 5%. This was never mentioned at the time of selling and we wondered if this is something that we can add to the list of why we think we've been missold? Additionally it looks as though we've been paying interest on this tax rather than it being a one off payment and just paying interest on the PPI. Can they do this? It certainly doesn't sound very fair.....

Thanks.

Hi there

You have good reasons there and to strenthern your case I would write everything possible.

Many on here have had all these isses with First Plus.

Was it First plus that arranged and sold you the finance or a broker?

You write to the ones who sold this to you.

For more info, here is a link below, with a checklist or mis selling reasons and templates, if you require further help then please ask.;)
You do not have to write in the amounts on your letter though.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Good luck, and please keep us posted, cheers.

Di

dunstonh

On doing some further reading through the original loan agreement we noticed in the small print that the amount of the PPI included Insurance Premium Tax at 5%. This was never mentioned at the time of selling and we wondered if this is something that we can add to the list of why we think we've been missold?

It has absolutely no relevance at all. There is no requirement to mention IPT explicitly. There are certain mandatory things to point out but IPT is not one of them.

Additionally it looks as though we've been paying interest on this tax rather than it being a one off payment and just paying interest on the PPI. Can they do this? It certainly doesn't sound very fair.....

The tax is payable at time of premium being paid. So, there is no way you can pay it another way. Its not unfair but common sense that the insurer collect the IPT with the premium as that is the way it should be.

So, I disagree with di (for a change) on these strengthening your case. You may have other grounds which are fine (like charging interest on the PPI full stop) but the IPT comments will not help you in any way whatsoever.

di3004

dunstonh wrote: »

It has absolutely no relevance at all. There is no requirement to mention IPT explicitly. There are certain mandatory things to point out but IPT is not one of them.



The tax is payable at time of premium being paid. So, there is no way you can pay it another way. Its not unfair but common sense that the insurer collect the IPT with the premium as that is the way it should be.

So, I disagree with di (for a change) on these strengthening your case. You may have other grounds which are fine (like charging interest on the PPI full stop) but the IPT comments will not help you in any way whatsoever.

Thanks for clarifying on this Dunstonh, appreciated, glad you came along.
Cheers.;)

Buns_Mum

Thanks both; nice to have advice from such experienced hands as yourselves!
Di - it was a broker and they've said they're coming back with a response by 29th October so that will be worth waiting for! Once thing my husband can remember them saying at the time is that the PPI was like a savings plan which certainly seems like a 'creative' way of selling it. I've also had an interesting conversation with FP this morning about something I didn't understand on the form. The guy fully admitted that the original loan agreement (and all older agreements) were rather confusing and not very user friendly; surely something that would strengthen the case for the consumer. I studied law and am pretty anal about reading contracts etc but even my IFA struggled to understand the loan agreement!