Mis-sold Payment Protection Insurance

When lenders and brokers arranged PPI policies they built high levels of commission into the premiums, without disclosing these to the customer.

Research by the Financial Conduct Authority found that on average this commission made up 67% of the premiums and following a landmark court case set new rules which entitled many more consumers to make a claim.

If your lender is found to have not disclosed an unfairly high commission on your policy then you are due all the commission payments back. How much this will be in your case depends on the commission levels involved as well as how long you had the PPI policy for, but in one landmark case a couple were awarded over £17,000.

Once you’ve registered your interest a member of our team will contact you to understand your circumstances and get the details of your claim. If you’re eligible to claim we’ll then issue your paperwork for you to sign digitally and return. We then work with a panel of experienced solicitors to submit your complaint and pursue it with your lender and if successful your lender will issue you with an offer for the commission payments plus interest.

All claims are different and are at the mercy of processing times at the lenders. We will keep you updated on the progress of the litigation via email, text and phone throughout the process.

The fee for PPI Undisclosed Commission services is 48% inclusive of VAT on the financial award made by the lender.

When a complaint for mis-sold PPI is upheld, the provider must refund you the premiums paid plus statutory 8% interest for each year you held the policy or account. This is designed to put you back in the financial position you would have been in had you not had the policy in the first place. This 8% interest is considered savings interest and is therefore subject to tax like money you earn from a normal savings account.

In 2016 the government introduced the Personal Savings Allowance (PSA), allowing basic rate taxpayers the ability to earn up to £1,000 in savings interest without paying any tax. As most people do not earn anywhere near this amount through standard savings products, the PSA typically covers the interest that was added as part of their PPI compensation and as such should not have been taxed.

The same principle still applies, but the limit on what you can earn in savings interest before paying tax is £500 rather than £1,000. Top rate taxpayers do not have a PSA. If in doubt get in touch with us to see if you’re eligible.

If you were a non-taxpayer at the time you received your compensation offer you are entitled to claim back 100% of the tax deducted from your offer, as long as that amount would not move you up into the basic rate tax bracket. If in doubt get in touch with us to see if you’re eligible.

HMRC rules state you can only claim back tax from four years ago, so the clock started as soon as you received your offer of compensation.

A simple example for a basic rate taxpayer is someone whose PPI offer included £1,000 of statutory interest and did not earn any other interest from elsewhere in that year. The £1,000 they received from their PPI interest does not exceed their PSA and so they should not have had the 20% tax deducted and are due all of it back, which would be £200.

An example for a higher rate taxpayer would be someone whose PPI offer included £500 of statutory interest and did not earn any other interest from elsewhere in that year. The £500 they received from their PPI interest does not exceed their PSA and so they should not have had the 20% tax deducted and are due all of it back, which would be £100.

Once you’ve registered your interest a member of our team will contact you to understand your circumstances and issue your paperwork if you’re eligible to claim. Once you sign and return your digital forms we compile your claim and send it on to HMRC. If successful HMRC issue a cheque for the reclaimed amount.

Claims are processed by HMRC, so are always at the mercy of their workloads. Currently we are aware of very high volumes of submissions and staff limitations at HMRC, so claims are taking longer than usual but the sooner you put your claim in the sooner you can expect your cheque if your claim is successful.

Our fee for Tax Reclaim services is 36% inclusive of VAT on the financial award made by HMRC.

We’ll compile your case, handle communications and ensure any offer made to you is fair and accurate. We’ve been a leading voice on PPI for more than a decade, helping our customers to check for mis-sold PPI more than 4 million times, and are regulated by the Financial Conduct Authority. We communicate with our customers in a friendly and human way, we’ve never engaged in cold calling and you won’t have seen us advertising on television or on the radio as we focus our efforts on offering our customers the best possible claims experience.

To register your interest and get started just click the relevant link below, and a member of our team will then be in touch to check your eligibility.