I'd taken out a Barclays Career Development Loan in 2008; falling behind with repayments during 2010, the loan was then paid off a few years later 2013.
In 2019, I received a letter from Barclays Bank to say “There were some changes to the Consumer Credit Act (CCA), which meant that we sent you either incorrect information or did not send information we should have. We are not entitled to charge interest from the time of the error until we corrected it.” Therefore, I received a refund of £1,953.36, early part of 2020.
Recently, reading an article online (Debt Camel and Martin Lewis MSE) I learned, with PPI and similar payouts, banks often automatically pay tax on the customers behalf. Even when not paying tax if they're under the threshold.
I contacted Barclays Bank and HMRC, I was told by Barclays that on this type of loan, tax would've been paid on my behalf at 20%. HMRC have then outlined the information I would need to give them in order for the amount to be repaid to me. Such as reason that I consider I have overpaid tax.
My question; will this simply be a case of working out 20% of £1,953.36 due back to me, or is there more to it than that?
The articles (Debt Camel and Martin Lewis MSE) talk about a statutory interest element of 8% added to such loans/payouts. People though, are allowed to earn some interest without having to pay tax. So, might, that be how I work out what I might be due back? i.e."from the time of the error, when they were not entitled to charge interest until they corrected it."
I wasn't earning above the threshold (of around £12,500) Year 2019-20. I understand this isn't PPI, but perhaps a similar course of action for reclaiming the overpaid tax.
I'd really appreciate some advice on this.