www.iva.co.uk

Hi all

Does anyone on here know if DFD have ever refunded the interest portion of a successful PPI claim?

Or if there has been any judgements on if the interest portion should be refunded to the debtor?

Thanks

There have been no judgements. Some firms refund, others do not, whilst a few refund to some clients and not to others ( as a "reward" for signing assignments). It ius all a bit hit and miss.

By definition interest is income.

It is whether it impacts on your tax liability that is important.

I cannot speak for DFD but I do agree with both Foggy and Lifenoteasy. The interest on the repayment is taxable and needs to be included in any return to HMRC. Most times now it is not a problem as the bank will deduct it and pay it over or the I.P. will do so. Previously we rebated a percentage of the interest to our clients so they would have the money but not any more.

Some firms apparently rebate the interest but I have no idea why.

Thanks so much for the feedback.

Barclays have finally agreed to pay out on an old PPI policy that they initially refused.

It was a small policy but done over a long time from around 1998! So whilst the PPI payment isn't huge the interest is almost as big in itself and would make a huge difference to us right now.

Barclays have already deducted tax so that's ok.

Ironically Barclays was the worst creditor for laying on huge charges when we started to struggle all those years back too so I'm glad they paid out in the end. I do hold Barclays above all others slightly more responsible for our debt issues as at one stage they were piling on up to £90 a day in overdraft and refused DD charges - of course it was ultimately our own mess but we stood no chance against that.

Time will tell on the interest...