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PPI payment due.
gary_davis
Posts: 2 Newbie
Ive been told that im due to get a payout on my claim (good news) i am then told that i have to pay vat on my ammount then the PPI claim firm take 30% of the remaining figure! is this usual? seems a lot to me and i have to pay the vat before they take there 30% £8890 paid and i walk away with £5000 roughly.Anyone else had this happen? many thanks,Gary.
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) i am then told that i have to pay vat on my ammount then the PPI claim firm take 30% of the remaining figure! is this usual?
If you use a claims company then yes. It is a VATable service.seems a lot to me and i have to pay the vat before they take there 30%
VAT is 20% of their fee. So, it their fee is 30% then it equates to 36%. You should have known their fee before you signed up for using their service. So, it shouldn't be a surprise to you.£8890 paid and i walk away with £5000 roughly.
And when you think that all they did was put a stamp on an envelope to the bank/firm containing your complaint template. £3,890 is a very expensive stamp!
Now you can see why we tell people not to use claims companies.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
i wrote to the bank etc and they said i had not been miss sold ppi so thought i had nothing to loose by letting SF look at it for me,i was just wondering if it was usual to pay so much out. Thankyou guys for your help,Gary.0
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gary_davis wrote: »i wrote to the bank etc and they said i had not been miss sold ppi so thought i had nothing to loose by letting SF look at it for me,i was just wondering if it was usual to pay so much out. Thankyou guys for your help,Gary.
PPI firm will have just used the (free) FOS referral which your rejection letter would have told you about.
PPI firms cannot do anything you can't do yourself, they use the same free complaint process and the same free Ombudsman service. If you had referred your complaint to the FOS as was your right, you would have kept all the money.Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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The VAT is 20% of the fee. So if they charge 30% of the payout, the VAT is 20% × 30% = 6%, which is on top of the 30% they keep.
For other readers, following the guidance on this site, the fee is zero and 20% VAT on zero is also zero.0
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