Other Frequently Asked Questions Archives - Allay
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Other Frequently Asked Questions

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You have received another Letter of Authority to sign as your previous one may be out of date, or the Defendant may be different to the one you previously signed for.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.

Clients can contact HMRC to request a tax rebate for the tax on the 8%, but this will depend upon the client’s income/salary. If a client is under the current tax threshold/on benefits etc. they may get a refund of the tax paid on the 8% interest. Please refer to the www.gov.uk website for details on the current year tax threshold.

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. The reason you are receiving warnings is due to the system changing your status automatically, and that is therefore why you are being chased for payment. Please get in touch and one of our advisors will be able to 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 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 a lack of supporting evidence.

My personal details have changed, what do I do?

You can either contact us via email or call us and speak to an advisor who will change your details for you.

I have added a claim and realised the lender/defendant 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. If you started your claims journey before 10/07/18 your fee per T&Cs applies) of redress recovered relating to all accounts with your lenders/defendant, no matter if this was 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).

For PPI
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. You will receive £1520.

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 cash and have your loan reduced by £2000.

For Other products

Example 1: Compensation is cash in hand
If the agreed fee is 36% (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 £720 as our fee. You will receive £1280.

Example 2: Compensation is cash in hand with loan and/or future instalment reduction
If the agreed fee is 36% (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 £720 as our fee. You will receive £280 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 36% (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 £720 as our fee. You will receive £0 cash and have your loan reduced by £2000.

How do I send documents to you?

Our Pack, Letter of Authority, Terms of Business – please post these back in the free post envelope provided. If you have not received this, please call the number on the letter and we will send this out to you. Alternatively, please send it to the free post address ‘FREEPOST, The processing Centre, NE1 2LA’.

ID, Utility Bills, Bank Statements, Supporting Evidence – you can scan these documents or take a good quality photo of them and email them to the address on the letter. Or you can post this back in the free post envelope provided. If you have not received this, please call the number on the letter and we will send this out to you. Alternatively, please send it to the free post address ‘FREEPOST, The processing Centre, NE1 2LA’.

The Financial Ombudsman (FOS)

The Financial Ombudsman (FOS) do offer free support you can find more information at http://www.financial-ombudsman.org.uk/

51%*of PPI claims that were submitted to FOS were resolved in favour of the consumer. Here is a small sample of lenders who said that PPI was not mis-sold, yet were upheld by FOS.

HFC Bank 87%*
Shop Direct 88%*
Barclays Bank PLC 61%*
Lloyds Bank PLC 64%*

For more information go to http://www.ombudsman-complaints-data.org.uk/

*This is the percentage of cases, the ombudsman service resolved in favour of the consumer in the six-months period from 1 July to 31 December 2016.