PPI Charges

sazzle23_2

Hi can anyone help the company that is dealing with my PPI claim which I won no thanks to them as I did all the dealling with the banks myself want 25% plus vat. which I knew about and dont mind.
But also the bank is changing my loan and reducing it further without PPI on But the company also want 25% plus vat on the PPI I have saved even though I am not getting it in the hand so to speak can anyone give me any advice about this

di3004

Hiya
I don't know how these work but sure someone may and post up soon.
Did they not explain this in writing before it went ahead?
(the charges etc)?

dunstonh

But also the bank is changing my loan and reducing it further without PPI on But the company also want 25% plus vat on the PPI I have saved even though I am not getting it in the hand so to speak can anyone give me any advice about this

This is allowed and is the most common method in most financial product areas. Redress is to put you in the position you should have been had the transaction in question never taken place. With current loans with PPI it is very easy to correct the position and alter the payments and balance to reflect what it should have been. The rules allow this and it is the fairest option.

One of the risks of using a claims company is that if you don't get the cash in hand then you have to pay them out of your pocket. Personally, I think this ought to be a mandatory risk warning that claims companies should disclose. However, its not in their interests to do so and there is no rule saying they have to. Unfortunately for you, you are liable to pay them and you will have to pay them from your own savings.

Alpine_Star

sazzle23 wrote: »

But the company also want 25% plus vat on the PPI I have saved even though I am not getting it in the hand so to speak can anyone give me any advice about this

If you mean that they want 25% of what you would have paid in premiums had you not cancelled the policy, then I would not accept it.

dunstonh

We seem to have some confusion here on what is happening. Please can you clarify?

1 - is it that they are trying to take 25% of premiums not yet paid?
2 - is that the bank corrected the payments within the product and didnt pay you any amount directly?
3 - a combination of above

Alpine_Star

dunstonh wrote: »

2 - is that the bank corrected the payments within the product and didnt pay you any amount directly?

Sorry, I don't quite understand that. Could you elaborate please?

dunstonh

Alpine_Star wrote: »

Sorry, I don't quite understand that. Could you elaborate please?

one of the redress methods is effectively to void the existing product or adjust the existing product to the PPI is removed and the balance adjusted. In this case the person doesnt get the money as the loan balance is reduced instead.

amersall

I think the claims co want 25% plus vat on the whole ppi amount, not just the ppi that has been repaid to the customer. As that is what they "won" for the customer.And as usual, the customer does all the "legwork".

Alpine_Star

amersall wrote: »

I think the claims co want 25% plus vat on the whole ppi amount, not just the ppi that has been repaid to the customer. As that is what they "won" for the customer.And as usual, the customer does all the "legwork".

So effectively they want 25% of what they actually reclaim and in addition 25% of what they don't actually reclaim.

amersall

Alpine_Star wrote: »

So effectively they want 25% of what they actually reclaim and in addition 25% of what they don't actually reclaim.

They want 25% plus vat on the total ppi amount,(as i see it anyway) as this is taken off the loan, so the customer will be better off with the loan repayments,
as the ppi monthly payment will be less the ppi monthly amount.
As opposed to just 25% on the ppi the customer got back as redress. I would ask the op to look at the contract that was signed to see what the agreement was on the redress.This is worse when it is a very large ppi that is won back as you can often end up owing the claims co money.