Card Protection

[emmie]

i have had some money back in regards to the miss-selling of card protection, which its good that some has come back, it isn't much by the way, and i am wondering at why i and presumably others who may get money back, have to pay 20 percent on the interest, subject to tax the letter states, i have looked at the calculations on the back of the letter, and i get the top rate, which isn't saying much.

[emmie]

anyone know, would be useful

[sunny-dave]

The interest is regarded as 'income' rather than 'compensation' - so is subject to your usual marginal tax rate - 20% for most of us.

If you are a non-tax-payer you can claim it back at the end of the year when you do your tax form.

[rockyracoon]

Well I suppose if you hadn't spent the money on CP then it might have been in a bank account earning interest which in turn attracts 20% tax.

[emmie]

i get benefits, so guess have to accept it as a bonus. But this miss selling lark is beyond the pale,

[treetops68]

For the same reason you pay tax on interest from any other source (savings etc.) because it is classed as unearned income.

[emmie]

i was thoroughly persuaded to take the Card protection out, having been instilled with fears of ID fraud, and worse, had i known what i know now, i wouldn't have done, sure there are plenty of folk in the same boat.
the repayment is small

[murraymints]

emmie any tax rebate will be made to you automatically around about end of March time next year if you are on benefits...think personal allowance for single person is £10.5 K now ?

[emmie]

murray, its not a tax rebate,

[emmie]

i think they duped rather a lot of people,

[jennyjoan]

My friend has been tortured with calls re PPI (is that correct) - she is a very clever woman and wouldn't even dream of applying as she said it is buttons you receive.

Just lost £500 recently from my online account - some company hacked in but thankfully Santander replaced it almost immediately. JJConnemara

[sunny-dave]

The repayment should be of all CPP premiums paid since 2005 - plus the interest.

It can sometimes be difficult to calculate the actual CPP payment if it is 'bundled' into another (legitimate) product.

[emmie]

well its good i got something back, now what to spend it on, don't smoke, so won't be fags, don't drink much, so no wine, let me think, x

[murraymints]

I know emmie..I' referring to your comment about paying tax on the interest x

[murraymints]

cake all round !

[emmie]

ok.. x

[emmie]

my mum is getting my Cake winnings, courtesy of ED.