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Mis-sold PPI – FAQ

If you are an existing customer and we have submitted a PPI Complaint on your behalf, you may find the below guide to the most frequently asked questions useful:

We get asked a whole range of questions related to PPI Claims every day, so to make it easier for you to find out a bit more, we have put together this list of PPI FAQs. If your question is not answered below, please contact us and a member of our friendly team will get back to you with an answer. If we think your question might be useful to other people, you might even find we add it below! Our guide to your most frequently asked PPI questions…

  • Do I have to pay anything if my Claim is not successful?

    No.

  • How does your claims process work?

    You will find further details in our Key Facts document.

  • How much does it cost to make a Claim?

    If we are successful in reclaiming your PPI, then our current Fee(s) is 24%, inclusive of VAT, of any redress offer you receive as a result of our Claims Services. Please refer to the Terms of Engagement in your Initial Pack.

  • What are formal or informal debts?

    A formal solution is a legally binding agreement between you and your creditors to pay back or discharge your debts over a period of time. A formal solution is granted under a ‘statutory’ scheme which means that it has set rules and requirements for how it operates, and it is managed by an Insolvency Practitioner. Formal Debt solutions include:

    •  IVA
    • Bankruptcy
    • Debt Relief Order
    • Protected Trust Deed (Scotland)
    • Sequestration (Scotland)
    • Debt Arrangement Scheme (Scotland)

     
    An informal debt solution is an arrangement with your creditors where a monthly payment is made to each creditor on a pro-rata (proportional) basis until all debt is repaid. This is ‘informal’ because they do not have to agree to the arrangement. There is no formal legal agreement or court decision to make your creditors accept your offer. Informal debt solutions do not have to be managed by an Insolvency Practitioner, they are often arranged directly with creditors or through a debt management firm.

  • How will I get paid if I am successful?

    Most Lenders will pay the redress directly to you, either via cheque or credit into an active bank account. Please note that if you are subject to a formal debt arrangement, such as IVA, Debt Management or Bankruptcy, please be advised any compensation may be offset against outstanding debts. In these circumstances our Fee(s) will only be payable on the amount of compensation you directly receive. Please be advised that if you are in an informal debt arrangement or have arrears or an outstanding balance, then any compensation may be used to reduce the balance or repay your debts which could mean you may not receive any cash payment in hand. However, you will still be liable for our Fee(s). In the event that your Lender pays The Claims Guys directly, we will deduct any outstanding Fee(s) and forward any remaining amount to you.

  • What are my Tax Responsibilities following a successful Claim?

    Compensation awarded to customers following a successful Claim for PPI may be taxable. Please read on to find out more:

    If my PPI Claim is successful and I receive compensation, will it be taxable?
    – You are required to pay income tax on the statutory compensation payment from the Lender – Any refund of policy premiums or interest you paid is not taxable

    How much income tax will I have to pay?
    – In line with UK Legislation, income tax will be deducted from any statutory compensation payment at the basic rate of 20%

    What if I am entitled to claim back income tax?
    – If you are a non-taxpayer it may be possible to reclaim this from HMRC (R85 forms – the HMRC form which shows you are a non-taxpayer – cannot be accepted with this type of interest) – You will need to contact HM Revenue & Customs (HMRC) directly in order to complete a R40 claim form

    Is there anything else I should know?
    – If you do not complete a tax return or you need to pay income tax at a higher or additional rate, you will need to contact HMRC directly as well Tax liability, as a result of compensation awarded for mis-sold PPI is the responsibility of the customer. Please refer to the PPI Advice section on the HMRC website which offers more information. You can also call the HMRC Tax Helpline on 0300 200 3300.

  • How can I cancel my Agreement(s) with The Claims Guys?

    You have the right to cancel your PPI Agreement(s) free of charge within 14 days of The Claims Guys (TCG) receiving your initial signed Letter of Authority.

    After 14 days, you have the right to terminate your PPI Agreement(s). However, TCG may issue a Termination Charge(s) which will be reasonable and proportionate to the work done and the costs incurred by TCG up to the point of termination. Please refer to our Key-Facts Sheet and Terms of Engagement.

  • Are you authorised and regulated?

    The Claims Guys Limited are authorised and regulated by the Financial Conduct Authority, Interim Permission Number 833489

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