Packaged Bank Claim

stulish1

I used a PPI Company to sortout a package bank account (i know i should have done it myself - well live and learn).

I have just had the Claim Upheld and Lloyds reported they would pay me £3293.10 (i only received £3288.21 into my current account).

Now the claim company who take 39% say i should pay £1417.93, i have queried this and they say this is because the money Lloyds pay me is with tax removed and i have to pay 39% of the Award.

Looking at the letter from Lloyds in no place does it explicitly say my award is 'X' amount it on.

it shows REfund Due as £1922.64, Amount of Interest £1712.08 Less Tax of £342.62 and the amount of interest after tax as £1370.46.

then it states Total payment due £3293.10.

The Claim company terms and conditions state 39% of the award, my question is the Award with Tax or Without.

It just seems underhand of these companies to say award, which most people would think is what you get in your hand, event their examples do not show any tax.

Regards


Thanks

Mersey_2

Well done on the reclaim, but yes, best to handle them yourself in future.


From what you've said - re their terms you signed upto - it sounds about right.


There may be a slight discrepancy over interest (it should be paid up until you receive the redress not eg 2 months earlier when agreed as some banks seem to do).


The only other £ you may be owed would be to reclaim the tax paid on the interest element from HMRC. ie for those who earn below £11k pa (plus all taxpayers have a £1,000 interest-free personal allowance on top of this from this tax year).

dunstonh

It just seems underhand of these companies to say award, which most people would think is what you get in your hand, event their examples do not show any tax.

It is important to understand what you sign up for. Mis-sold packaged accounts. Now you think you were missold by the claims company. Once bitten, twice shy should apply.

[Deleted User]

stulish1 wrote: »

The Claim company terms and conditions state 39% of the award, my question is the Award with Tax or Without.

The claims company will want 39% of any redress before tax. There is also VAT for you to pay.

stulish1 wrote: »

It just seems underhand of these companies to say award, which most people would think is what you get in your hand, event their examples do not show any tax.

It's pretty straightforward (although very expensive) and you will have agreed to this when you signed their documentation. Any tax liability is your own, not the Claims Company.

Little point in trying to avoid paying them, based only on something you overlooked.

Next time make any complaint yourself.