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  • FIRST POST
    • captain184
    • By captain184 13th Oct 18, 7:38 AM
    • 9Posts
    • 1Thanks
    captain184
    captain184
    • #1
    • 13th Oct 18, 7:38 AM
    captain184 13th Oct 18 at 7:38 AM
    1 Allay claims are charging me 36% on a successful PPI claim. According to the Law Society a PPI cap of 20% (excluding VAT) was imposed by The Financial Guidance and Claims Act 2018 with effect 10 July 2018. Are Allay claims now breaking the law by imposing the 36%?
    2 Should this charge be imposed on the gross amount recoverable or the net amount paid to me?
    Thank you
Page 1
    • -taff
    • By -taff 13th Oct 18, 7:48 AM
    • 8,937 Posts
    • 8,813 Thanks
    -taff
    • #2
    • 13th Oct 18, 7:48 AM
    • #2
    • 13th Oct 18, 7:48 AM
    1 Didn't know about that, so can't help - is the 36% inclusive of VAT, because they can do that....

    2 the gross amount
    Last edited by -taff; 13-10-2018 at 7:55 AM.
    • amersall
    • By amersall 13th Oct 18, 8:03 AM
    • 16,820 Posts
    • 18,903 Thanks
    amersall
    • #3
    • 13th Oct 18, 8:03 AM
    • #3
    • 13th Oct 18, 8:03 AM
    https://www.gov.uk/government/publications/cmr-special-bulletin-new-fee-cap-measures/cmr-special-bulletin-new-fee-cap-

    measureshttps://www.lawsociety.org.uk/news/stories/ppi-fee-cap-from-10-july/


    I suppose it depends when the claims co were engaged by you. It seems to covers claims from 10th July 18.

    • captain184
    • By captain184 13th Oct 18, 8:07 AM
    • 9 Posts
    • 1 Thanks
    captain184
    • #4
    • 13th Oct 18, 8:07 AM
    Ppi
    • #4
    • 13th Oct 18, 8:07 AM
    Thanks Taff. On item 1 the document is quite clear on its instruction as a 20% cap so I will pursue that with Allay and the Law Society solicitor guidelines. Another of my observations is that Allay use the term 'we are entitled to xxx%' where is that entitlement documented? Normally a payment phrase would be 'our charges are' or words to that effect. I will continue the quest for answers.
    • captain184
    • By captain184 13th Oct 18, 8:12 AM
    • 9 Posts
    • 1 Thanks
    captain184
    • #5
    • 13th Oct 18, 8:12 AM
    Allay claims
    • #5
    • 13th Oct 18, 8:12 AM
    Thank you. Yes indeed it does and I only engaged them in September 18. I was a tad annoyed after I had done so because this forum and self help claims would have saved me a substantial amount of money. Anyway I have to bite the bullet as it were but their operations seem to be erratic to say the least. Other web forums show some customers have only been charged 24%! I will continue my quest for answers.
    • -taff
    • By -taff 13th Oct 18, 8:31 AM
    • 8,937 Posts
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    -taff
    • #6
    • 13th Oct 18, 8:31 AM
    • #6
    • 13th Oct 18, 8:31 AM
    Again, is the 36% incusive of VAT?
    • Moneyineptitude
    • By Moneyineptitude 13th Oct 18, 10:11 AM
    • 22,607 Posts
    • 12,152 Thanks
    Moneyineptitude
    • #7
    • 13th Oct 18, 10:11 AM
    • #7
    • 13th Oct 18, 10:11 AM
    Another of my observations is that Allay use the term 'we are entitled to xxx%' where is that entitlement documented?
    Originally posted by captain184
    On the contract you signed I expect. Check the documentation.
    is the 36% incusive of VAT?
    Originally posted by -taff
    My first thought too, -taff.
    What is the breakdown of fees versus VAT?
    Is the 36% figure your own calculation, captain184?
    some customers have only been charged 24%!
    Originally posted by captain184
    Even that figure is 4% over the capping level.
    • dunstonh
    • By dunstonh 13th Oct 18, 10:40 AM
    • 96,058 Posts
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    dunstonh
    • #8
    • 13th Oct 18, 10:40 AM
    • #8
    • 13th Oct 18, 10:40 AM
    20% fee plus 20% VAT is 24%. The cap is on the fee before VAT.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • captain184
    • By captain184 13th Oct 18, 11:56 AM
    • 9 Posts
    • 1 Thanks
    captain184
    • #9
    • 13th Oct 18, 11:56 AM
    Allay claims
    • #9
    • 13th Oct 18, 11:56 AM
    Apologies yes it is
    • captain184
    • By captain184 13th Oct 18, 11:59 AM
    • 9 Posts
    • 1 Thanks
    captain184
    Allay claims
    Thank you yes my assessment of the % charge as well
    • captain184
    • By captain184 13th Oct 18, 12:05 PM
    • 9 Posts
    • 1 Thanks
    captain184
    Allay claims
    The amount of redress is £11280.08, charges claimed are £4060.83 that doesn't seem to be correct then?
    • brettcta
    • By brettcta 13th Oct 18, 12:49 PM
    • 3,535 Posts
    • 3,322 Thanks
    brettcta
    correct but tragically expensive for a stamp
    helpful tips
    it's spelt d-e-f-i-n-i-t-e-l-y
    there - 'in or at that place'
    their - 'owned by them'
    they're - 'they are'
    it's bought not brought (i just bought my chicken a suit from that new shop for £6.34)
    • dunstonh
    • By dunstonh 13th Oct 18, 6:01 PM
    • 96,058 Posts
    • 63,874 Thanks
    dunstonh
    The amount of redress is £11280.08, charges claimed are £4060.83 that doesn't seem to be correct then?
    Originally posted by captain184
    Wow. Bet you regret employing them to put a stamp on the envelope containing the same style template the provider or the FOS supply.

    £4060 for a few minutes work is horrendous.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • touch1337
    • By touch1337 13th Oct 18, 6:35 PM
    • 12 Posts
    • 4 Thanks
    touch1337
    You asked if the charges were applied to gross amount recovered or net amount paid to you, so presumably these are different amounts?
    Which of these is the £11280.08?
    • captain184
    • By captain184 14th Oct 18, 7:15 AM
    • 9 Posts
    • 1 Thanks
    captain184
    Allay claims
    The gross is £11280.08


    Thanks everyone for the comments, I am painfully well aware of my mistake and I certainly don't need reminding of it but its too late to worry about that now. My queries were related to the accuracy and lawfulness of the charges. It seems from the threads that it is what it is so I will move on.
    Thank you
    Regards
    • On-the-coast
    • By On-the-coast 14th Oct 18, 8:52 PM
    • 33 Posts
    • 11 Thanks
    On-the-coast
    Sorry.. this doesn’t seem correct to me (not that ever paid for PPI - except for 87pence once in 1997... and hence I’ve never looked too closely at any of this stuff).
    Surely... if you signed up after July (which you say you did)
    And there’s a fees cap of 20%... (plus 20% VAT)
    Then the most your claims company shoudl be taking from you for your “stamp” is 24% of 11280.08 = 2707
    Or hasn’t cap come into place yet?
    • dunstonh
    • By dunstonh 14th Oct 18, 8:58 PM
    • 96,058 Posts
    • 63,874 Thanks
    dunstonh
    Cap is in force from July and if the OP signed the contract after that then the claims company is acting fraudulently. Fraudulent may be a strong word but I am only using the same language that the ministry of Justice used when it referred to claims companies incorrectly billing.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • captain184
    • By captain184 15th Oct 18, 6:59 AM
    • 9 Posts
    • 1 Thanks
    captain184
    Thank you I will let you all know how I get on with my query back to Allay re the charges and the 20% + 20% issue.
    • captain184
    • By captain184 22nd Oct 18, 9:42 PM
    • 9 Posts
    • 1 Thanks
    captain184
    Greetings
    The result is reduction from 36% to 24% inclusive of VAT their statement is


    ""It is 20% exclusive of VAT. Inclusive it is 24%. "" which relates to what dunstonh applied in the above post so a considerable saving but still stung for £2k+. Never mind it is money I didn't know I had anyway so it is a bonus in a twisted sort of way. I am now going to try claiming on other deals I have made over the years BUT!!! I will do it myself this time...


    Thank you
    • amersall
    • By amersall 23rd Oct 18, 7:04 AM
    • 16,820 Posts
    • 18,903 Thanks
    amersall
    Nice result result, could have been 0% though, glad you will diy in future!.

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