Why am I receiving another Letter of Authority when I have already signed one?
You have received another Letter of Authority to sign as your previous one may be out of date, or the lender may be different to the one you previously signed for.
Why do I have to pay tax on the 8% interest?
You have to pay the tax on the 8% interest which the lender will deduct automatically from your redress amount as this is classed as an income and we invoice you on the gross amount. Lenders will add 8% interest to a redress, from 1st October 2013 lenders are ordered to remove 20% tax from the 8% interest. The 8% interest is classed as an income; this is why clients have to pay tax on this. We charge the client for the full redress including the full 8% tax as the client would have had this as an income.
Clients can contact HMRC to request a tax rebate for the tax on the 8%, but this will depend on the client’s income/salary. This year’s tax allowance is £9,440, if a client is under this thresh hold/on benefits etc. they may get a refund of the tax paid on the 8% interest.
Why am I receiving warnings when I have not received the redress from my lender?
If you have not received your redress from the lender, please contact us on 08455 61 61 61. The reason you are receiving warnings is due to the system changing your status automatically, and therefore is why you are being chased for payment. Please get in touch and one of our advisors can change the status of your claim.
I am being asked for further information which I do not have?
If you are receiving requests for further information and do not have this, please contact us on 08455 61 61 61 and speak to your case handler. We may still be able to proceed with your complaint but in some cases this will result in closure due to lack of supporting evidence.
My personal details have changed, what do I do?
You can either contact us via email or call 08455 61 61 61 to speak to an advisor who will change your details for you.
I have added a claim and realised the lender name I gave is incorrect, what should I do?
Please contact us immediately to correct this. You will then receive a new Letter of Authority to sign and return in a pre-paid envelope.
I have found the correct account number for my claim, what should I do?
Please contact us immediately so we can update the information on the complaint. This may help speed up the process of your claim.
Do you have an example of what I will pay as a fee?
We are entitled to receive 24% (inclusive of VAT where applicable) of redress recovered relating to all accounts with your lenders, no matter if received after the initial settlement, whether the redress was received by way of loan / arrears reduction and/or in cash. This fee may be shared with any introducer(s).
Example 1: Compensation is cash in hand
If the agreed fee is 24% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which all £2000 is cash, we will charge you £480 as our fee.
Example 2: Compensation is cash in hand with loan and/or future instalment reduction
If the agreed fee is 24% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which £1000 is cash and £1000 is loan reduction, we will charge you £480 as our fee. You will receive £520 and have your loan reduced by £1000.
Example 3: Compensation is used to offset arrears on credit card or loan
If the agreed fee is 24% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which £0 is cash and £2000 is loan reduction, we will charge you £480 as our fee. You will receive £0 and have your loan reduced by £2000.