Martin Lewis provides an urgent warning about PPI scams, advising people to be wary of tax refunds and deed offers.
As the Money Saving Expert was compelled to address the ongoing issue, MARTIN LEWIS issued a warning on PPI frauds today. Martin identified one basic feature to look out for while recognizing potential scams.
Today, Martin Lewis answered questions from This Morning viewers, and one elderly saver sought his guidance on a common problem. Corinth, a 76-year-old woman, sought assistance with her PPI payments.
Corinth explained how he received a PPI payment from Entico, who then demanded a photo ID, a National Insurance number, and an energy bill for a tax return.
Martin was questioned if he thought this was a hoax or a serious request.
Martin responded by saying, “I don’t know Entico, so I can’t tell you whether it’s a fraud.”
“Certainly, if you’ve received a PPI payment, most people who have received a PPI payment in the last four years are eligible for a tax refund.”
“You can do it yourself, and there are free internet manuals that show you just how to do it.”
Martin wrapped off by discussing a critical identifier that can help consumers narrow down their risks.
“So if this is a company that paid you out, or the company you used to receive your PPI, it isn’t likely a scam,” Martin added.
“It’s probably a fraud if it’s a company you’ve never worked with before.”
The Low Incomes Tax Reform Group (LITRG) recently expressed concern about PPI, stating in late June that it was “concerned” that some people who used a tax refund company to get a PPI or working from home tax refund are now discovering that unrelated tax refunds are also going to the refund company, with additional fees deducted.
People may have signed a “deed of assignment,” in which a tax return is lawfully assigned to the tax refund company by deed or letter, according to LITRG.
Deeds of assignment are properly used by tax return firms to ensure that they receive the refund that they assisted in arranging so that they can deduct their cost.
Rather from asking clients to sign a deed of assignment for a specific claim, certain tax refund firms, according to LITRG, are asking them to sign deeds of assignment that span numerous previous tax years.
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