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Successful PPI reclaim - defaulted account

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  • Successful PPI reclaim - defaulted account

    I had a few accounts that I had to default on 10 years ago, as a result of the financial crisis; some of them had PPI. With the deadline looming, earlier this year, I decided to bit the bullet and use a CMC that offered no win no fee, commission only services. It would have been very difficult to start gathering account details and sending data requests for old statements when the accounts were terminated that long ago, knowing they usually don't send anything over six years old. Time was running out and the CMC only asked you to tick boxes for any accounts you may have had, they did the rest. In all honesty, I didn't think anything would come out of it, but as there were no fees payable unless I got some money, I thought it was worth a try. I did speak to them about some accounts being defaulted, so we were clear on the terms.

    To my surprise, one of the accounts produced a few grand in PPI, which was paid out to me, and I then I had to pay the CMC. I had nothing from this creditor for years, and never received a notice to say the debt was sold, even though I've not moved in over 12 years, so there was a bit of a doubt regarding the state of the account. I'm very pleased to say the reclaim was successful, money's in the bank, the CMC did all the work and got their 25%. They are still working on a few other accounts.

    One thing I didn't know was that the 8% statutory interest is taxable and this tax was deducted from the payout.

    I would like to encourage anyone who may have had PPI, to try and reclaim before the deadline, which is less than two months away, even if it requires paying someone to do it for you, after all, it's money you don't have right now.
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  • #2
    Some news on this account, a few weeks ago, I received notification from claims company that they had received an offer from another bank, at first I thought it was for a different account, it turns out it was for this same credit card, but for the period before the portfolio was sold to the credit card company. As they didn't have data (it was a period ending over 17 years ago), they made an estimated offer. As I have no way of obtaining statements/data from that long ago, I accepted the offer. This was a smaller amount, still just over £1,000, all in all, the PPI recovered on this card was over £5,000 before tax and commission, Around £4,000 in my pocket. Not bad for a defaulted account!


    • #3
      Furthermore, I read on Martin Lewis's site that the tax withheld on the 8% statutory interest can be reclaimed due to it being generally below the taxable threshold. I hope you don't mind my posting the link here: https://www.moneysavingexpert.com/re...insurance/#tax


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