Welcome Finance - missold PPI and part of loan

[Dipply75]

pmsl, I know.

 

Its only because I have being going over and over that I know what I mean lol

 

The bedtime reading which got me thinking about how Welcomes premium is in no way a separate contract, in any sense. The figures are all quoted together, no separate amount stated for the interest, nothing:

 

Homeserve v HMRC | OUT-LAW.COM

 

Or just tell me to behave and go to bed lol!

Edited November 19, 2008 by Dipply75

[alanalana]

hello dipply,

 

Hi all. Firstly and apology as there has been loads happening but I have not been updating my thread. Sorry! Been writing endless letters lol.

 

Right quick update then onto the main issue which I need help/opinions/expert guidance on....

 

Sent the letter asking for their actual response...nothing. Their collections branch calls weeks later chasing payment (entire phone call recorded BTW :grin:) Another letter sent informing them that they have had ample time and since we received 2 final response letters it was now being passed to the FOS etc.

 

A week or so later there is a chap at the door one evening and there is someone from Welcome, claiming initially to know nothing about a dispute. We refuse to discuss it, advising the complaint is now with the FOS but will give him a copy to take away. While I go indoors to print this off the sneaky get starts talking to the OH, saying he noticed a complaint in the system, can we give him more detail......fishing! Then, out of the blue, says he has a special offer and would write off half the debt right away! HHmmmmm. He is chased away and a copy of the complaint posted to him as he asked anyway.

 

Now, in the meantime there has been digging about this Insurance Premium Tax (IPT) and there are serious questions that Welcome need to answer:

 

From what I understand, IPT is payable on any taxable insurance premium. The standard tax is 5%, which should apply to these PPI policies. One of the main questions is...what counts as taxable premium?

 

The HMRC states: “Premium” means all payments receivable under the contract of insurance by an insurer. (For this purpose payments under the contract of insurance received on an insurer’s behalf by third parties are treated as received by the insurer.) In particular, this includes any payments in connection with:

• the risk insured;
  
• cost of administration (that is, administrative costs which are charged to the policyholder);
  
• commission (paid to or retained by brokers or other intermediaries);
  
• tax (premiums are tax inclusive for IPT purposes);
  
• interest (where credit arrangements allow for payment in instalments, whether or not the payment for this facility is called interest).
  

(However, credit charges, whether or not the payment for this facility is called interest, are not treated as part of the premium where the charge is made under a separate contract, for example, a contract regulated by the Consumer Credit Act.)

 

OK - so the IPT is clearly 5% of the premium you pay. But should it also be 5% of the interest you are charged on that premium? It does mention the charges being on a separate contract, say a CCA - but note the exclusion words, separate contract.

 

This is where I need help! My OH's agreement has the premium listed in with the other borrowing, all the interest payable is lumped together, the monthly payments are lumped together. There is nothing listed seperately for the PPI premium, and certainly no separate contract in any shape or form.

 

Now bear with me!!! Even if the interest charges are not taxable - the premium is. They sent us their breakdown of prices for the loan and here is what it says:

 

PPI Price inc IPT - £1094.67

Interest - £ 710.37

Total Payable - £1805.04

IPT incurred - £43.81

 

My maths is not fab but I know that £43.81 is not 5% of £1094. Are there other deductions, taxes, vat or someothing I am unaware of?

 

Um, any comments?

 

Your quoted figures have got me stumped.

 

I am no authority on taxation but from my own experiences I can only point you to my own case from the last few weeks on Tax issues.

 

RBS make me an offer goodwill gesture and all that:rolleyes: I say No and ask for 8% Statutory on top.

RBS say bog off go to the FOS:x

AA goes to the FOS:D

FOS say we have a revised offer from RBS 8% Statutory interest added :Dbut Less 20% tax..

 

Not sure why this happens though but the FOS seem to agree with it.

 

Sorry could not be of more help if I stumble on any more info I will surely post and if I get a bit of time I will google.

 

aa

[citizenB]

I found some paracetamol

[Dipply75]

pmsl, you can have some of my wine citizenb, just for reading my possibly insane rantings. I keep doubting that a company that size would not have something like this airtight - but they are that arrogant.

 

Simply - on an insurance premium the insurer/broker pays 5% tax. Our premium was £1094 and they only listed £43.81 tax. Just doesn't add up! Think I'll pass it all to HMRC and see........hehe

 

Alanalana, thanks....and WTF on the 20% tax? Will have to watch out for that one!

[chatty1967]

hi

 

Me and my partner took out a £3000 loan with welcome finance in 2001 we were told we had to take out the £1110.94 ppi or we wouldnt get the loan. They also made other charges, for healthcare and homecare, we are totally oblivious as to what these are for. The loan was for 5 years but was paid up in jan 2003 as we had to sell our home due to hubby being made redundant and a disability that he has had all his life,,, yes we told the sales guy this and it was put on the ppi.

I have read everywhere to try and claim back these rip off charges, has anyone had any luck at all with welcome finance. I think its disgusting they can get away with this, people who usually take their loans have no other choice in getting a loan anywhere else so believe what they are told.

 

Any advice would be gratefully appreciated

chatty1967

 

chatty

[postggj]

This Will Be An Uphill Struggle If Not No Way Hosay

 

Six Years Has Passed Since The Account Was Closed