PPI Reclaiming Discussion Part 5

billyadvice

julie61 wrote: »

First, you should checkout the benefits website. If you have savings over a certain amount then it will affect your benefits claim, so be careful as to how much PPI you are entitled to.

thanks for this advice julie.
I have no savings at the moment. I have a lot of debt to friends and family who I would like to pay off quickly with all the proceeds from my ppi claim. This would leave me with no savings again.

What confuses me is that I have been told that money earned through a mis-sold ppi payout has to be submitted to the Inland Revenue as earnings , just as though it was earned through employment.
If I have been informed correctly this could have severe financial implications for me.
I am worried that my successful claim money would mean that I lose the right to claim housing benefit and income support, which in turn means that I won't be able to pay my creditors (friends and family) because I will need to pay the rent and council tax with it.

AncientOfMu

billyadvice wrote: »

thanks for this advice julie.
I have no savings at the moment. I have a lot of debt to friends and family who I would like to pay off quickly with all the proceeds from my ppi claim. This would leave me with no savings again.

What confuses me is that I have been told that money earned through a mis-sold ppi payout has to be submitted to the Inland Revenue as earnings , just as though it was earned through employment.
If I have been informed correctly this could have severe financial implications for me.
I am worried that my successful claim money would mean that I lose the right to claim housing benefit and income support, which in turn means that I won't be able to pay my creditors (friends and family) because I will need to pay the rent and council tax with it.

It is only the 8% interest part of a PPI redress claim that has to be notified to the Inland Revenue not the whole sum. And only if the Financial Institution doesnt take tax off as part of the redress.

Cheers

Mu

billyadvice

This is great information to hear Mu , many thanks.
In this case I can proceed with my claim without the worry of having my state benefits stopped.


If I receive payments total £10k for example this would be over the savings threshold for claiming income support so I suppose I would have to somehow prove that I have paid my debts with it, and not kept it as savings.

AncientOfMu

billyadvice wrote: »

This is great information to hear Mu , many thanks.
In this case I can proceed with my claim without the worry of having my state benefits stopped.


If I receive payments total £10k for example this would be over the savings threshold for claiming income support so I suppose I would have to somehow prove that I have paid my debts with it, and not kept it as savings.

Thank you for the thanks however I am NOT a financial advisor just someone who reads a lot. Please clarify the situation with the benefits office or Inland Revenue or whoever before making a decision about claiming as I wouldnt want to be responsible if something went wrong and you lost your benefits.

Cheers

Mu

amersall

billyadvice wrote: »

This is great information to hear Mu , many thanks.
In this case I can proceed with my claim without the worry of having my state benefits stopped.


If I receive payments total £10k for example this would be over the savings threshold for claiming income support so I suppose I would have to somehow prove that I have paid my debts with it, and not kept it as savings.

You need to contact the benefits office to make sure what happens, the 8% is taxable and could be classed as earnings, if you paid debts off with the win, these must be priority debts and not Loans paid back to family members, the benefits office will need proof of what you did with the money.
As Mu has said, we are not Financial Advisors and you really need to contact the benefits office, this is the only way that you will know for sure what will happen to your benefits.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/BeginnersGuideToBenefits/DG_4016267

scotland01

Hi there – new to the site and finding all the information really informative!

I have been contemplating a PPI claim but not sure I have a case so was hoping someone could help.

I have had the same credit card for the last ten years (estimate – not really sure how long) – it was an RBS Advanta, then Mint and now back to RBS. If memory serves me right the PPI was sold over the phone. I only realised recently that I was still paying this from a paper statement (I normally just use online to pay) and I phoned and cancelled it within the last 6 months. The credit card is still active.

Thinking about this now, I never received a policy for this and I’ve worked in the public sector for the last 15 years, which means that I don’t think it would ever have paid out in the event of an illness as my sickness benefits are 6 months full pay and 6 months half. It also worked out far more expensive than what was explained to me.

Any advice much appreciated - thanks

xyellowx

had a letter off halifax tuesday £1700 and been told another one in post £2300 to be paid within 28 days :j


thanks to amersall / di3004 and anybody else who posted answers to my questions your help was much needed as i was clueless about claiming and wasnt going to bother as i had no paper work and didnt think it was worth the hassle

apart from reading on here daily for the last month all i did was phone the lenders and post 2 letters couldnt of been easier within in 4 weeks halifax offer and 3 more with other lenders in week 5/8
PLEASE DONT WASTE YOUR MONEY USING A COMPANY USE THIS SUPER WEBSITE INSTEAD.

THANKS :T

DJKris2010

So this morning I recieved my T&C and Agreement from Monument (Providian originally) for my Visa Credit Card.

I want to give you a couple of quote from them and ask for advice. The last sentence of the covering letter reads

Accordingly, we consider our Credit Card Agreement with you to be fully enforceable and that there is no dispute

Is this just Monuments way of putting people off making claims? Has anyone had any success with them?

Now here's the first part of the T&C that relates to the Payment Plan

The Payment Break Plan (The Plan) is optional and is not insurance. You will qualify to enrol in the Plan if you are a UK resident who is either employed, self-employed, retired, or permanently disabled.

So firstly does this mean it's not PPI?

Secondly, if it is, although it quite clearly says optional I can't see anywhere on the agreement where I was actually given the option. I'll admit I didn't read the T&C at the time of signing, I should have. But on the page where I signed there is no mention of The Plan, no tick box for me to opt in and no seperate box for me to sign for it. Essentially it was automatically included and I would have had to contact them to cancel, which I didn't because I was stupid enough to not realise I had a choice.

J-rome

Quick update from me, I called the hsbc regulated sales office to find out if i needed to send a payment with my letter. The lady done a search on my account and said she couldn't find any details of my personal loans going back to 2002, as they only had my records back to 2006. But she said she could see that I had ppi, but it didn't say any dates. Very odd I thought, I have taken out another loan with hsbc last year but that definitely didn't have ppi on it, she said she will put all the info on my ppi that she has on a questionnaire and send it out to me.

She said it's supposed to take 5 working days but could take longer as they're so busy. I'll wait for the questionnaire to come and take it from there.

Will update again after that.

DJKris2010

J-rome wrote: »

Quick update from me, I called the hsbc regulated sales office to find out if i needed to send a payment with my letter. The lady done a search on my account and said she couldn't find any details of my personal loans going back to 2002, as they only had my records back to 2006. But she said she could see that I had ppi, but it didn't say any dates. Very odd I thought, I have taken out another loan with hsbc last year but that definitely didn't have ppi on it, she said she will put all the info on my ppi that she has on a questionnaire and send it out to me.

She said it's supposed to take 5 working days but could take longer as they're so busy. I'll wait for the questionnaire to come and take it from there.

Will update again after that.

You don't need to wait for the questionaire, you can download it from here.