PPI After and IVA and Allay Cliams

grahamm123

Hi all


I hope you can help me. I have just been told some news that has shocked me


I successfully completed an IVA in 2012. Since then I did not think too much about claiming back PPI until I started getting continuous requests form PPI Claim companies wanting to check on my behalf. Eventutally I gave in to Allay Claims and just told them to go-ahead and have a look, not thinking I would be seeing anything at the end of their searches. I didn't even read any Ts and Cs as there would be nothing coming my way. I was quite wrong in that thought and Allay raised 7 cases with the RBS. To cut a long story short my top line was just over 44k. The RBS has told me th5at because I left them with some debts on loans I had with them, just under 12k would be used to pay off debts on the loans. The big claim was for 32k. All the claims would also have 20% tax deducted. The interesting part of my story is that Allay Claims are taking 24% off me pre tax being deducted, which means they will get more than the legal 24% I was expecting they would get off me, so I was losing out there. I have just also been in touch with Allay Claims to say that the 6 claims adding up to just under 12k will not be paid to me and Allay told me that I still have to pay their fee, even though I haven't gained anything from the claims. So they will et approximatly 3k and I got nothing. The girl at Allay also told me that even though my bit claim of 32k has had tax deducted of 4k taken off , brining it down to 28k and the RBS are taking off about 6.5k for arrears on it, Allay are saying that they are still ging to charge me for the full amount, as if I has 32k, which adds up to almost 8k. This mean I will get approximately 10k in total whearas Allay Claims will get over 11k. Is this ring, are they allowed to do this? End up with more in their pocket than I am getting and is it legal for them to take their 24% cut before tax is deducted? I apologise for the very long message, but needed you to understand my predicament. Thanks, Graham

[Deleted User]

Yes it's correct.

Your redress is set off against unpaid debts and the fee is calculated on the full amount of the redress.

The claims company is still getting the legal 24% you agreed to.

grahamm123

So Allay don't have to pay tax on their side of things, but the man in stree does? Ethically doesn't sound fair to me.

[Deleted User]

Yes, they need to pay tax as well.

Dazed_and_confused

All the claims would also have 20% tax deducted

That isn't true. No tax is deducted from PPI refunds, it is only deducted from the interest element.

Don't forget either that depending on your other taxable income in the tax year the interest is paid you might owe HMRC some additional tax. Or they might owe you a refund of some of the tax deducted. All depends on your personal circumstances in the tax year concerned.

antrobus

grahamm123 wrote: »

....
I successfully completed an IVA in 2012.

Have you spoken to the IP who handled your IVA?

You might find that they want the £32k to pay your creditors.

See here;
https://debtcamel.co.uk/ppi-iva-green-wright/

grahamm123

Hi Antrobus, the IVA people have provided me with a Letter Of No Interest.

[Deleted User]

grahamm123 wrote: »

Hi Antrobus, the IVA people have provided me with a Letter Of No Interest.

Well done for establishing that prior to making a PPI complaint. Not so well done allowing a Claim Management Company (and the government through VAT) to effectively take a quarter of your redress for doing little more than putting a stamp on the envelope containing your complaint.

Reds33

I also signed up with Allay a few years ago. All my claims were rejected After 6 months Allay closed my case as all claims were unsuccessful.

A few months ago I was contacted by Santander to inform me that I been award £3,754. A few days later I recieved a letter from Allay saying we have won with a invoice for £1,200 somewhat pounds. I have not paid this invoice as my understanding I no longer had a contract with them as the case was closed. I mentioned this to them when they called & they deny this. I remineded them that I had previous made a claim to Santander years proir to them being involved & I felt they were not entititled to any fee especially as our contract had been ended.


I have since requested all documents from Santander who provided proof that Allay had not contact them after November 2017 when they informed me the case was closed.


Please please can any one advise me as Allay have been constantly harassing me for their fee..

[Deleted User]

Reds33 wrote: »

Please please can any one advise me as Allay have been constantly harassing me for their fee..

Make a formal complaint to them (including a copy of the letter informing you the case was closed) and, if the harassment doesn't stop, you can then refer to the Ombudsman as CMCs are now fully regulated.

SonOf

A few days later I recieved a letter from Allay saying we have won with a invoice for £1,200 somewhat pounds.

When the contract is ended by the company, it ends.

page 2
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/342291/Claims-management-regulation-business-bulletin-Aug-2014.pdf

The above is not exactly the same but it does confirm that Letters of authority expire when the contract is closed.

As mentioned above, make a complaint and refer it to the FOS if necessary. CMCs are now regulated by the FCA and they are already concerned about the activity of CMCs.