Received Plevin letter but don't understand it.

steviecav

I received a letter yesterday from MBNA saying they have upheld my complaint and are refunding me some commission plus interest. The letter includes a breakdown of the figures but I don't understand them. This is what it says:

DECISION
We're upholding the undisclosed high commission complaint (Plevin) and to calculate your redress we've:

1. refunded any commission and profit share above 50% of the PPI premium you paid.
2. refunded the historic interest paid on 1 (above)
3. added annual simple interest at 8%, where you should not have been charged interest.

***Then there is a table with these figures in:***

Amount of applicable commission and profit share £671.11
Total amount of fees refunded £ 24.00
Amount of historic interest £195.76
Applicable 8% gross interest* £781.48
Less UK withholding tax* -£156.30

*UK withholding tax of £156.30 has been deducted from the 8% gross interest amount. You may need to inform Her Majesty's Revenue and Customs (HMRC) of this amount. For any questions regarding tax, please contact the Tax Office.

Payment will be made within 28 days of this letter.

**********

Sorry to sound a bit dim but what refund do you think I will get? Should I contact the Tax Office? I am in full time employment.

Any advice would be much appreciated.

Thank you.

[Deleted User]

You get the first four numbers, minus the fifth.

steviecav

Now that would be nice.

TrickyDicky101

If you complete self assessment then you can reclaim the tax deducted via that medium (assuming you are within the tax free limits for interest income). If you don't complete SA but are still within the tax free limits (or would be) then you can complete form R40 and request a refund of the £156 from HMRC:

https://www.gov.uk/apply-tax-free-interest-on-savings

Gig1968

Received the same sort of letter dated 30th October no payment has being made to me yet.

[Deleted User]

Gig1968 wrote: »

Received the same sort of letter dated 30th October no payment has being made to me yet.

It'll be at least 28 days (and should probably state that on your letter somewhere).

Lemmons46

Hello, can you confirm the years to and from your Plevin Claim is associated with?

It looks as though they have awarded you only one years worth of applicable interest? MBNA cc rate would have been about 28.5% APR. Unless of course you cleared your balance regularly.

If the high commission part of the premium covers more than the one year then you could be due a significant amount more?

Just checking as I am waiting for a decision on the same basis but where premiums were deducted over a 6 year period. Thanks for your clarification in advance.

[Deleted User]

Lemmons46 wrote: »

It looks as though they have awarded you only one years worth of applicable interest?

It doesn't. The applicable interest is £781 on redress of around £900.

Lemmons46

Hi ZX 81, I’m talking about the cc interest of £195.76 not the 8% applied after the historic interest is added. This figure only represents about 1 years worth of credit card interest on the premium amount claimed. Hope that makes sense.

Gig1968

The amount of applicable commission etc on mine was £1200.
I had the card for many years racking up a 5000 credit limit.
I'm not sure how they calculate it as you know there are no details on the letter.
To be fair I'm happy for the redress of some £2500 just before xmas