Have you been sent a Visa card loaded with money from QuickQuid, or its sister brand Pounds Till Payday?
It’s a nice surprise, but what is it for and how much tax was deducted? You need to know the amount of tax deducted because you may be able to claim this back from the tax man!
The refund letters
These cards have been sent out in August to some customers who previously had a refund from QuickQuid after making an affordability complaint to QuickQuid.
The letter says:
Following a further review of your complaint, we have determined that you are due an additional amount of redress/monies in addition to the goodwill offer you received.
Please find enclosed a pre-loaded Visa debit card for £xxx to reflect this additional amount.
Please note that this redress includes 8% per year “simple” interest, sometimes referred to as “delay interest”. This additional interest is subject to a 20% wihholding tax. As required by law, the withholding tax has been deducted from your payment and will be remitted on your behalf to HMRC. Please retain this letter as evidence of amounts withheld should HMRC request such evidence.
The Financial Ombudsman has always said that these refunds should have 8% simple interest added. But QuickQuid has often not added the 8% extra element when it has given a refund directly to a customer, not through the Ombudsman.
So it is good that QuickQuid is now recognising that it should have been paying this.
Here are some examples readers have reported receiving
- Natalya had a refund of £1000 from QuickQuid last year and has been sent a card with £20 on it.
- Paul had a refund of £2500 last summer and has now been sent £800.
- Shem had a refund in September of £3905 for loans dating back to 2012. His extra refund is £1260.
The amount of 8% interest added matters
The letter unhelpfully doesn’t say if all the money being given is 8% simple interest. If it is, then the small amount Natalya has been sent looks as though it may be too low!
And it doesn’t specify the amount of tax deducted, which is a figure that people need to know if they complete a self-assessment tax form.
Most people will also be able to reclaim some or all of the tax deducted from HMRC:
- non-taxpayers should be able to reclaim it all,
- basic rate taxpayers can reclaim up to £200 across all refunds in a tax year; and
- higher rate taxpayers may be able to reclaim up to £200, but may in some situations have a tax liability.
See How to reclaim tax deducted from PPI and payday loan refunds for details of how to do this.
So if you have had one of these letters, you need to ask QQ to confirm exactly how much of the amount you have been sent is 8% simple interest and how much tax has been deducted.
Using the money on the card
One reader points out:
be careful if you withdraw cash it charges you regardless as to what machine you use and it’s not cheap. So way better to use it in shops with the pin number you get.
There is also a really tight deadline for activating the card. That would normally be a good security measure, but these cards are being sent out in peak holiday season. So if you find your deadline has already gone when you open the letter, you will need to phone QuickQuid and ask them to send a new one.
If you have moved…
Then you probably won’t get the card as QQ won’t know your new address. I suggest you phone them up and tell them you have moved if you have had a refund from QQ or PTP, from them directly and it didn’t include 8% interest.
Getting a refund from Quick Quid
How 8% interest works for refunds
Vanquis ROP refunds should be bigger!
Lee says
I received one last week with £1570 on it relating to a £7k refund I had last year.
Had no idea I could claim back some of the tax so thanks will definitely do it.
Linda says
I had a letter/card from QuickQuid out of the blue a few days ago. My initial refund was for about £550 (just under a year ago) surprisingly the amount on the card was £393 which was a nice surprise. It operates like a debit card but be careful if you withdraw cash it charges you regardless as to what machine you use and its not cheap so way better to use it in shops with the pin number you get
Sara (Debt Camel) says
That’s a good tip – I will add it to the article.
Yours is an example of how the amount of the refund cannot just be extra 8%, that is too high.
Linda says
I thought exactly that although the letter insinuated it was interest only but as you say the sums don’t quite add up and there was no breakdown. The letter also said I could use it for tax purposes or words to that effect although as I say there were no figures so that was a bit annoying. A nice bonus though which was very welcome.
Sara (Debt Camel) says
Welcome indeed! Ask QuickQuid for the tax details so you can claim up to £200 of that back as well.
Linda says
I will, I managed to claim some tax back last year following your guidance on here as I had a few refunds where tax was deducted. So will contact them again today
Sara (Debt Camel) says
If you have already had £200 back for the last tax year, that is the most you can get – unless you are not a taxpayer, in which case you can get it all back.
Chris Mcvitie says
What happens if you have changed address since your complaint? I recieved a refund form my pounds to pocket loans but my QQ ones where rejected but hopefully pounds to pocket are doing this also.
Sara (Debt Camel) says
Good question! I have updated the article to include this.
If you received a refund from PTP direct (not via the Ombudsman) and you don’t think it included an element for 8% interest, I suggest you phone them up and ask.
Ross says
I’ve just sent QQ an email, as I have changed address since I received refunds from both QQ and P2P before. I’ll let you know what they say?
Maxine says
I had 3900 from quick quid I wonder if I get it
Sara (Debt Camel) says
was that from QQ directly? How long ago?
Maxine says
Last September got a refund from QQ
Sara (Debt Camel) says
Then you may well be due the 8% extra on that… worth asking them!
Katie says
I’m assuming if it went through the Obudsmsn then I guessing I won’t get one.?
Sara (Debt Camel) says
Refunds through the Ombudsman almost always (99% of the time) include 8%starutory interest. But have a look back at what you were given – because you should still be able to claim some of the tax deducted back from the tax man!
Louise says
Hi, I just spotted this article and got a bit hopeful as I had a refund from them in December. I checked my settlement letter and it appears I had the 8% at the time. Obviously I can’t complain as I’ve already had it but it’s a nice surprise for everyone else. Good to hear !
Sara (Debt Camel) says
but you may be able to get some of the tax deducted back from HMRC. QQ should have told you how much they deducted at the time – did they?
Louise says
Yes it was £159. But now I’m really worried about whether I should have declared the interest amount on my tax credits form. I earned £16k last year and have no savings. I didn’t even consider the refund as I considered it to be money I got back from previous years income. But if I ask for this tax will I get into trouble for being overpaid tax credits?
Mark says
I had £350 tax deducted from the 8% statutory interest in december..Also in the same year (july) i had £480 deducted from 8% interest from wonga..Both 20% taxed..So am I due a refund
Sara (Debt Camel) says
Not from QQ… but if you are a basic rate taxpayer you should be able to get £200 back from HMRC (one lot of £200, not per refund), see https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/ for how to do this.