@amexuk Amex PPI and tax on stat interest

[tifo]

received a 'true' copy of the 'Notice of Assignment' Amex would have sent me in 2004. Note the date is 19th April 2007. Also no address shown for Amex, which would be on all letters they send out, so who has actually printed this out now?

 

 

 

Also enclosed was a 'true' copy of the Terms and Conditions, an almost perfect printout on 13 pages, with some changes, some text underlined and some text crossed out (which wouldn't have been on the actual copy). No names, addresses or signatures at all. I guess this is a mockup printout of the standard Ts & Cs at the time and they have now changed their address. Is this valid?

 

 

Comments anyone. Have Fredrickson/Amex fulfilled the s.78 request?

[rory32]

This is just standard twaddle from Fredrickson. Probably did it on their tea break.

[tifo]

Thanks.

 

So this, combined with the pseudo application form agreement as shown, does not make the agreement any more valid?

[rory32]

Absolutely not.....anyway a deed of assignment rather than a letter of assignment would need to be shown to demonstrate that they own the debt (which they are not going to show you as it would show how much they bought the debt for). The CCA, even if they did show a deed of assignment, would still have to be shown by the DCA to prove that the debt was yours. This should have been provided by the original creditor to the DCA when selling the debt and the original creditor would need to keep a copy of it for 6 years after closing the account to comply with anti money laundering regulations.

[tifo]

thanks rory32,

 

so, in a few words .... they're clutching at straws here!

 

anyway, the app form as shown above is unenforceable as not been signed by Amex and the above from Freddy don't mean jack s**t.

[rory32]

Spot on

[tifo]

First Amex sent a 'NO' letter. I replied back.

 

Now i have received a second letter stating they have sent the payment to a DCA. I do not acknowledge any debt to this DCA now as no compliance with s.78 CCA. Amex have done this without even asking me.

 

They have sent the difference between the charges and their current charge of £8, plus 8% interest. I requested the full amount of charges with default interest as per statements.

 

Amount asked is £224, amount sent to DCA is £50.

 

Any advice as the amount is small and will they defend at court? or shall i pass it to the FOS?

 

They have stated they will also 'recover their costs' in any court action.

[tifo]

Some background :

 

Account sold to DCA by Amex, closed in full by the bank, no balance owing. Obviously owed to (and chased by) DCA.

 

CCA letter under s.78 sent to DCA in Jan 2007, no valid agreement sent. Only the application form rec'd, not signed by Amex and no prescribed terms.

 

Claim for charges :

 

Prior to passing the claim to the FOS, the bank offered around £50 (difference between charges and £12) out of £220 (with CI) and said they've sent this to the DCA. I didn't accept their offer. Prelim request was sent May 2007, passed to FOS some months later.

 

At the FOS, they offered around £122 and said they'll pay the remaining £72 to the DCA, following the previous payment of £50. I haven't accepted their offer and the FOS agrees with them, decision made Oct 2008.

 

I've rejected the FOS decision because the bank has made no offer to pay me, the claimant.

 

After the FOS, i've today sent an LBA and want to issue a claim after 14 days. Claim now stands at £950 (CI) or £420 (Stat).

 

Will look forward to what they say.

[tifo]

received a reply to my LBA letter.

 

Do i want the remaining refund of £72 also paid to the DCA, following the last refund of £50 a year ago? I think i made it clear at the FOS and by my LBA what i think of their offer, so why are they asking this?

 

They say the refund will go towards the DCA to reduce the balance owed to Amex. I wasn't aware there was anything owed to the bank, the debt was absolutely assigned, i (must have) got a Notice of Assignment, the DCA maintained defaults in their own name and threatened court action many times. If the debt has been bought back by Amex, i haven't received any notification of this, so why are they paying a DCA?

 

They're saying they made the offer at the FOS to avoid unnecessary use of their time. It's taken them 12 months to make this offer and what about the time i've had to spend during this complaint?

 

They say the bank wants to avoid unnecessary court time and if i take this route, will go for costs. I am forced to take court action because they have taken 14 months to make an offer to a DCA and not me, the claimant. I don't think they'll get costs as they'd have to defend and win, and making an offer to a DCA is not a win.

[tifo]

I've just been offered a PPI refund by Amex but they're paying interest net of tax. They want me to reclaim this from HMRC if i need to.

 

This is the first time i've come across this and i don't see any guidelines for this from the FOS.

 

I should be able to deal with my own tax affairs.

 

They're also not offering the interest they charged on PPI premiums.

 

Any advice?

[ims21]

Hi

 

The 8% statutory interest is taxable and the amount of interest would need to be discolsed to HMRC at some stage, either by direct deduction by the bank or by yourself on an annual tax return.

 

There is only one other bank that I've come across that deducts the tax at source and that is RBS or BoS (can't remember wich if the two it is!)

 

You can ask Amex why there is no contractual interest refunded but first have a look at appendix 2 of the FSA handbook about the reconstruction of a revolving credit account. The FSA handbook is linked via the stoickies in the PPI forum.

 

ims

[tifo]

the amount of interest would need to be discolsed to HMRC at some stage, either by direct deduction by the bank or by yourself on an annual tax return.

 

I declare all interest in my annual return and would prefer this rather than the bank pay it. I've been doing this since I made my claims over the past few years.

[ims21]

Hi

 

Some banks do not deduct at source while others do.

 

You will need to account for the interest on your tax return as well as the amount already deducted by the bank.

 

ims

[tifo]

Some banks do not deduct at source while others do.

 

It's the first time it's happened for me with any bank for refunds.

 

Last time, Amex paid gross interest.

 

They're taking off tax at the higher rate of 50% when I'm not a higher rate taxpayer. They're also telling me that it's because higher rate taxpayers have to declare this interest.

[ims21]

Hi

 

Thats not right then....tax deducted at source should be at basic rate. You need to write and tell them so.

 

I think you will find that HMRC will confirm that to be the also. Might be worth a call to them to cnfirm.

 

ims