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Ologhai Jones

Britons Spend P P I Cash

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BBC website: Britons spending PPI cash on holidays and cars.

Stuff like this still has the power to surprise me, even though it's always happening.

Thousands of Britons receiving compensation for Payment Protection Insurance (PPI) mis-selling have spent the cash on holidays and cars, according to a survey.

The research... suggests that only 12% of those receiving the cash have saved any of it...

The survey suggests that the average payout was about £2,810 and that people spent the money quickly.

On average, they took less than three weeks to buy something.

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I wonder if i should see if i habr paid any PPI, just to try and get some of thr money bsck thst i might have paid into they system needlessly. Butni am unsure of the best way to approach it. I might do some looking into it at lunch

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That's the beauty of simulating the economy via PPI misselling compensation. The recipients are pre-selected to spend money they don't have on stuff they don't need.

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I wonder if i should see if i habr paid any PPI, just to try and get some of thr money bsck thst i might have paid into they system needlessly. Butni am unsure of the best way to approach it. I might do some looking into it at lunch

:lol:

I think you hit the nail squarely on the head

PPI: sold to those who like to buy

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That's the beauty of simulating the economy via PPI misselling compensation. The recipients are pre-selected to spend money they don't have on stuff they don't need.

:lol: so true

The Mrs asked me "how come we don't have any of this PPI money we can claim back?"

because whenever it was offered at the time I told them it was a waste of money

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That's the beauty of simulating the economy via PPI misselling compensation. The recipients are pre-selected to spend money they don't have on stuff they don't need.

Quote of the week. I was going to say something similar, but you nailed it. :D

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BBC website: Britons spending PPI cash on holidays and cars.

Stuff like this still has the power to surprise me, even though it's always happening.

Dare say it is often spent because it seems like a windfall they never expected, and unless anyone has debts that urgently need paying they reason that saving it is not going to make a significant difference to them.

We met a bloke recently who told us how his long term g/f went on at him to try to claim. For ages he couldn't be bothered, told her it wasn't worth the hassle, but eventually did and was astonished to get over £6k back quite quickly. He treated g/f and himself to a holiday in the Seychelles, flying business class for once. I wouldn't imagine he was broke, but not well off either - it was a treat he said they'd never have lashed out on otherwise.

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:lol: so true

The Mrs asked me "how come we don't have any of this PPI money we can claim back?"

because whenever it was offered at the time I told them it was a waste of money

If I knew they were going to pay 8% interest on my contributions, I would have bloody well loaded up on it.

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Should we really be surprised? PPI was commonly taken out by those taking on substantial debt to pursue consumer spending, without doing any due diligence as to whether or not it was worth having.

PPI is therefore an obvious bailout for those who are predisposed to be spendthrifts and was almost certain to be used to spend rather than be saved or invested.

It really is disgusting, especially as many of the biggest payers of 'compensation' are (now) publicly owned banks so the general taxpayer ends up footing the bill.

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As the majority of claims are processed via VAT registered claims management companies, HMRC will be taking a substantial slice of the compensation.

Back of a fag packet calculations

  • There has been £20billion set aside for refunds/compensation
  • say just half of this is processed via CMC's who charge around 25% plus VAT (it's the majority, really)

= £10billion

x 25% fee

= £2.5 billion in fees

x 20% VAT

= £500million in VAT to HMRC

Also, add in the income tax which claimants are supposed :lol: to pay on the 8% interest element of their refunds

And the corporation tax that these highly profitable CMC's will be paying

You can see that the government will make a fair wedge out of the PPI mis-selling scandal fraud.

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PPI was basically a tax on the stupid. I was offered PPI when I took out a loan - but didn't take it up because it was obvious for anyone with basic maths that it was a bad deal.

Its a shame the rest of us have had to pay for their stupidity! The worst thing has been the endless harassment - which must be terrible for old people stuck at home all day - from PPI claims companies making endless calls/sending text messages etc etc.

I would personally like compensation for all the rogue calls and messages I have experienced from these companies about my PPI claim. Why aren't they being regulated and fined?

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PPI was basically a tax on the stupid. I was offered PPI when I took out a loan - but didn't take it up because it was obvious for anyone with basic maths that it was a bad deal.

Its a shame the rest of us have had to pay for their stupidity! The worst thing has been the endless harassment - which must be terrible for old people stuck at home all day - from PPI claims companies making endless calls/sending text messages etc etc.

I would personally like compensation for all the rogue calls and messages I have experienced from these companies about my PPI claim. Why aren't they being regulated and fined?

See my post above !

Edited by Reck B

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If I knew they were going to pay 8% interest on my contributions, I would have bloody well loaded up on it.

+1 - so wish I had been stupid and unsavvy

wonder how many think they can get away without paying tax on interest - or don't even realise until the money has all been spent.

no doubt they will be ready with the 'I didn't know I had to pay tax' 'it is my money that was stolen from me' etc. :angry:

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+1 - so wish I had been stupid and unsavvy

wonder how many think they can get away without paying tax on interest - or don't even realise until the money has all been spent.

no doubt they will be ready with the 'I didn't know I had to pay tax' 'it is my money that was stolen from me' etc. :angry:

As far as I was aware basic rate tax on the interest is deducted at source? consequently only higher rate tax payers would be in the firing line....

The fact that so many more people have been dragged into self assessment following the child benefit rule changes would make it

an easy enough procedure to shake down some more cash from joe public.

I guess if HMRC do anything about it, it would be along the lines of a

tax catch up plan offered to self employed Plumbers, Home Tuition etc (i.e offer an amnesty on penalties for undeclared PPI interest for 'fessing up')

just bang out a letter remaining people should have declared it on their last tax return and offer them the chance to do it now without penalty....easy money

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Perhaps this illustrates why monetary stimulus directed to the public rather than the banks wouldn't work. They'd just spunk the lot rather than paying down their debt. The result being rampant inflation in the high street and a fauxcovery.

Edited by Eddie_George

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Perhaps this illustrates why monetary stimulus directed to the public rather than the banks wouldn't work. They'd just spunk the lot rather than paying down their debt. The result being rampant inflation in the high street and a fauxcovery.

I think the idea is to get recipients to spend it rather than pay down debt!

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Perhaps this illustrates why monetary stimulus directed to the public rather than the banks wouldn't work. They'd just spunk the lot rather than paying down their debt. The result being rampant inflation in the high street and a fauxcovery.

If a claimant has an active, overdue debt with a credit card company/loan and they get a PPI refund, it's often paid against the balance

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The latest PPI advert on the radio this evening was about the compensation being used to build an extension.

A double whammy advert - pushes the property market as well as "stimulating" the general economy. They couldn't come up with an advert about investing to help with rebalancing the economy - despite Osborne's message on the UK's economy lacking balance today.

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The 3k average is for multiple loans most people had 2 or 3 loans over a 10yr period with PPI on each average is really approx

£8-900 per loan + interest at 8% x 2 or 3

:blink::blink::unsure:

We're doomed.

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