PPI Reclaiming Discussion Part 5

PPIHELP

Dear All – I’m looking for a Tax expert with expertise in respect of the Tax on the interest that is paid with the PPI award, usually the bank withholds 20% standard rate, but then if you’re on a 40% PAYE rate, you have to pay the balancing 20% to the revenue - but as the award is generally related to a prior period - in which case I was on a 20% tax bracket, should the tax not be paid in ref to the period when he card was active and your tax level at that point


Any help with this would be very much appreciated

dunstonh

PPIHELP wrote: »

Dear All – I’m looking for a Tax expert with expertise in respect of the Tax on the interest that is paid with the PPI award, usually the bank withholds 20% standard rate, but then if you’re on a 40% PAYE rate, you have to pay the balancing 20% to the revenue - but as the award is generally related to a prior period - in which case I was on a 20% tax bracket, should the tax not be paid in ref to the period when he card was active and your tax level at that point


Any help with this would be very much appreciated

I'm afraid the interest is treated in the tax year it is paid. So, that would be now if you have just been paid it.

Sidnoi

Good day all, Newbie here.

I followed Martins advice and had a go at submitting a PPI claim to my endowment policy company. Recently, the well known endowment company contacted me and awarded me a sum of"redress" money, and my complaint upheld.

Here is the tricky part. I get two options to accept the money. One is redeem the full endowment policy, or, keep the "redress" money and let the policy continue.

The problem is the company want a current mortgage statement to date and I have not got a mortgage anymore. I lent money off my sisiter to pay the mortgage outright in 2007.

What shall I do as I cant meet the requiements of the "redress" money. I got documents I can post here if it helps.

Any advice? Thanks all.

dunstonh

I followed Martins advice and had a go at submitting a PPI claim to my endowment policy company.

I very much doubt Martin gave that advice as you cant get PPI on an endowment policy.

Here is the tricky part. I get two options to accept the money. One is redeem the full endowment policy, or, keep the "redress" money and let the policy continue.

That is not a PPI complaint outcome. That is an endowment complaint outcome.

The problem is the company want a current mortgage statement to date and I have not got a mortgage anymore. I lent money off my sisiter to pay the mortgage outright in 2007.

This is because the redress payment is based up to the point the endowment is no longer used for the mortgage.

What shall I do as I cant meet the requiements of the "redress" money. I got documents I can post here if it helps.

Tell them the truth. You cant avoid it. They will then adjust the redress accordingly.

[Deleted User]

dunstonh wrote: »

I very much doubt Martin gave that advice as you cant get PPI on an endowment policy.

A lot of people confuse making any complaint about a financial product as a "PPI claim".

Regardless, there is an MSE article about complaining about mis-sold endowments and I assume the OP followed that.

As you say, the redress will only be calculated up to the point the endowment ceased to be used for the mortgage in 2007.

Humphrey17861

I thought I would take this opportunity to let you know that since my previous posting my daughter has received a letter from Monument, an apology, and a cheque for £2371.70 (a few pounds different than the amount I quoted on my original post - my mistake). So, they had accepted the original payment of £1200 as full settlement of the debt!

Humphrey17861

dunstonh wrote: »

They are correct in doing this. The debt was not paid. A reduced settlement was agreed which left part of the debt written off.

The rules are quite logical on this. Where an amount was previously written off as part of an agreed settlement, any future redress can be used to go against that amount written off.

An agreed settlement means that they will not come after you in the courts. However, the debt still exists as it was never repaid.



Monument are correct in what they have done.

Nasqueron wrote: »

They use F&F to say that they will mark the debt as completed (so doesn't impact the credit rating as much) and that they won't chase any more. That doesn't mean that the money was repaid.

Without meaning to sound like an !!!, you can't seriously have expected to pay £1200 towards a £3600 debt and then claim back £2400 in PPI fees meaning the bank would have been £4800 out of pocket?

Moneyineptitude wrote: »

They were "just that". You paid £1200 and the Bank accepted that. No more money will be paid by you, but neither will it be refunded by the bank.
That's very full and very final.

I thought I would take this opportunity to let you know that since my previous posting my daughter has received a letter from Monument, an apology, and a cheque for £2371.70 (a few pounds different than the amount I quoted on my original post - my mistake). So, they had accepted the original payment of £1200 as full settlement of the debt!

Jo264

Hi, new on here so be gentle 😁 Put a Ppi claim in with lloyds athe beginning of the year and had a letter this morning to say that it has been put on hold pending the fca's consultation review of plevin v paragon which should be due spring 2016. Can they put a claim on hold? Shall I wait for the review outcome or take it to the ombudsman regardless? Your thoughts appreciated. Thanks.

Nasqueron

Humphrey17861 wrote: »

I thought I would take this opportunity to let you know that since my previous posting my daughter has received a letter from Monument, an apology, and a cheque for £2371.70 (a few pounds different than the amount I quoted on my original post - my mistake). So, they had accepted the original payment of £1200 as full settlement of the debt!

Which I assume you'll be putting towards paying off the money that was never repaid, because that is the honest and right thing to do of course :beer:

dunstonh

Jo264 wrote: »

Hi, new on here so be gentle 😁 Put a Ppi claim in with lloyds athe beginning of the year and had a letter this morning to say that it has been put on hold pending the fca's consultation review of plevin v paragon which should be due spring 2016. Can they put a claim on hold? Shall I wait for the review outcome or take it to the ombudsman regardless? Your thoughts appreciated. Thanks.

This would indicate that your complaint has failed (i.e. they will not be giving you a full refund). The only complaints that get put on hold for the plevin outcome are failed complaints that may be caught up with the plevin ruling.

You can go to the FOS if it has been more than 8 weeks. Or you can wait until you get the formal rejection with the part offer (which will be the commission above 50% plus interest).