PPI Interest - do you get to keep it?

tamiami

I'm sure I was told that you get to keep 8% (the interest) of any PPI claims.

Does anyone know if this is true?

McKneff

You do, but if you are a tax payer, you have to pay tax on it.

Anondebtadvisor

Thats right you can but you need to declare it to HMRC and pay tax on it

tamiami

Thanks for your replies.

Do you now if it 8% of the total PPI they claim? And does the IVA company have to tell me how much they claimed back?

ellifain29

Hi can anyone confirm whether you get the 8% of the interest? My IVA people say it will take some time to sort out

FiatFan_2

I believe it depends on your iva company, my StepChange IP said under no circumstances could i keep the 8% interest but it seems many others do.

Be interesting to find out what the official guidance is for IP's on this or whether it is at their discression, i.e. more % in their back pockets.

ellifain29

Well I will find out soon enough. My company said to me today that anything I would get would be from the interest but they weren't specific. They said their ppi policies had changed recently so I wouldn't get a definitive answer until they had gone through. It was around £1000 so I doubt I will see a lot of that, totally not expecting it either. Am also curious to know the official guidelines on it.

FiatFan_2

The 8% interest in my claim was £5250, which would have paid off our car and increased our iva payments. I'm still a little bitter over it but unless there are specific guidance contrary to what I've been told there's not much point fighting for it again.

Good luck getting something out of it

UpToMyNeckInIt

I think FiatFan is on the right lines here: The policy of an IVA company allowing their customers to keep PPI interest, does vary company to company.

ellifain29

I think I will just write it off and then if anything comes it will be a bonus. Thanks for your replies

tamiami

I'm with Grant Thornton and they told me I would get the 8% interest. Think it is calculated after they have taken their fees from it. Not received anything yet though.