Do I get to keep the interest on PPI

Tabby66

I have nearly completed an IVA. I spoke to my IP yesterday and she said they had claimed almost £19k in PPI.

She mentioned that I would get 8% tax back on this. I don't really understand what she meant. Will I personally receive 8% of £19k? Or does this go to the IVA as well?

Thanks

FiatFan_2

Hi tabby66, unfortunately it will very much depend on what was written into your personal arrangement with regards to keeping any monies gained from PPI. Some have specific causes in specifying that PPI is an asset but others don't so would depend whether your IP treats it as a 'windfall' or an 'asset'. If they go the 'windfall' route you may see something back, if they go 'asset' route you'll see nothing back.

Based on my experience this week, if it wasn't excluded at the start of the arrangement then it's an asset and you'll not see a penny, unless your IP is more considerate than mine. Although to be fair I may have set my sights a little too high with my request. Being near the end or your arrangement they may be more forgiving and let you have some.

I suspect the 8% being discussed is the interest added to the ppi refund which 20% tax is deducted and dependant on how your ppi was claimed fees will also be deducted, so there might not be much left after that.

Certainly worth speaking to your IP about, good luck!

techno1029

Depending on how long ago the PPI goes back you will be surprised at the amount of interest you could recieve. One example....I had a claim come back for approx £1900.....i was allowed to keep the 8% interest element, this equated to £750......thanks very muchly!!!!