PPI Insurance Claim scam!,

Big_Dom

I used a PPI claims company few years ago to claim my PPI. They got me some money back and took their commission from the money.

After few years the same company reached out to me again that the government are paying claimants back the taxes HMRC took from the PPI claims. They sent me a form to fill for them to get my PPI tax from HMRC. This happened about 2 years ago when they came back to me that they didn’t see any claims for me.

Sometime in June 2022 I got a letter from HMRC about over payment of tax at my work. They told me that I will get the over paid tax in 14 days.

Few days ago, I received a nonreply text message from the PPI company I last heard from over 2 years ago, that I may get a cheque for tax refund of the same amount the HMRC wrote me is due to me in 14 days.

Just yesterday, I received a cheque from this PPI claim company detailing how much they have taken from the HMRC tax refund due me from my work.

My question here is, when I contracted this PPI claims company to look into the tax HMRC took from my PPI claims, does that give them any rights to a portion of my tax refund which HMRC would have returned to me anyway?

[Deleted User]

Normally, yes. Check the contract you signed.

It definitely won't be a scam, just a poor decision.

sourcrates

PPI was reclaimable just by sending in a complaint to the lender.

Tax refunds can be claimed direct from HMRC using the appropriate form.

Neither service comes with any fee`s or charges, not unless you authorise a 3rd party claims company to act on your behalf, then depending on the type of agreement you sign with them (which lets face it, no one ever reads) you could be giving them the authority to take their fee from any future claim that you may become entitled too, regardless of what it is.

Which is why on this forum we bang on about never using such companies, as you are costing yourself potentially many hundreds of pounds for nothing basically.

It appears in this case, that they will continue acting on your behalf until you renounce your agreement with them.

dunstonh

They got me some money back and took their commission from the money.

It wasn't commission. It was a fee.  

After few years the same company reached out to me again that the government are paying claimants back the taxes HMRC took from the PPI claims.

Not strictly true but close.    If your personal tax situation is that you overpaid tax, then you can contact HMRC with the details and they would refund what is owed.  A 2 minute job.

Just yesterday, I received a cheque from this PPI claim company detailing how much they have taken from the HMRC tax refund due me from my work.

oh dear.  it looks like you agreed for the claims company to act as your agent for HMRC.

My question here is, when I contracted this PPI claims company to look into the tax HMRC took from my PPI claims, does that give them any rights to a portion of my tax refund which HMRC would have returned to me anyway?

Yes if you appointed them as your agent (or worse, you completed a letter of assignment) and your terms of contract agreed to it.   We have seen several threads like this where it has been the case.

It won't be a scam but it could be on the shady side.  If the claims company is FCA authorised then you can use the regulated complaints process against the firm if you feel they have misrepresented their services.   You will then get access to the FOS, if necessary.

Dazed_and_C0nfused

sourcrates said:

PPI was reclaimable just by sending in a complaint to the lender.

Tax refunds can be claimed direct from HMRC using the appropriate form.

Neither service comes with any fee`s or charges, not unless you authorise a 3rd party claims company to act on your behalf, then depending on the type of agreement you sign with them (which lets face it, no one ever reads) you could be giving them the authority to take their fee from any future claim that you may become entitled too, regardless of what it is.

Which is why on this forum we bang on about never using such companies, as you are costing yourself potentially many hundreds of pounds for nothing basically.

It appears in this case, that they will continue acting on your behalf until you renounce your agreement with them.

Note you will almost certainly only be able to get HMRC to remove them as your agent i.e. stop sending copies of correspondence or providing details about your tax affairs.

If there a deed of assignment in place you can only get that revoked with the PPI claims companies agreement.  Without that HMRC will make any tax refund due for any tax year covered by the assignment direct to the PPI claims company.