PPI Claim as pat of completion of IVA

[billywhizz732]

hi there, i need some advice if possible please.

I am making my final IVA payment this week. I have spoken to my IP today and they are saying before they can issue my completion papers i have to process a claim for PPI with my Creditors. My understanding is that if the claim is successful i am entitled to keep the first £500 of the claim as it will be classed as a windfall.

My question is, do i have to process a claim for the PPI now as if i processed a claim after my IVA is completed i would be entitled to keep the full settlement after any fees etc. I feel as though i am being pressurised into doing this now so that the creditors only have to pay back £500 and not the full amount

Any advice would be greatfully received.

[FoggyBrain]

Hi. I am afraid this is a bugbear that has recently hit the fan and most IPs havee jumped on the PPI bandwagon.

It isn't technically a windfall, but an asset and, as such, is payable in full. Even it it were treated as a windfall ( which some IP's are doing), you don't get the first £500! If the windfall was £499 you keep all of it --- if £501 you lose all of it to the IVA! Bummer, I know.

I have heard of an IP who has actually re-opened an IVA after completion, as trustee to pull a PPI claim in !!! Which in my opinion is all wrong !!

How your IP treats this depends on them. Some IP's are treating claiming as voluntary, others are threatening to fail the IVA for non-compliance !!!!

I understand CCCS is asking debtors to make their own claims and allowing them to keep £500 as opposed to paying some shark 40%.

At the moment ( which could change) Payplan are treating it as optional.

[Anondebtadvisor]

It is a shame some IP's are leaving it until the last minute and delaying completion! Very frustrating.........

[upset iva]

Hi i am also coming up against this ,
My Company DFD are threating me with delay to completion of iva. Even though my extension of completion was agreed in march by all my creditors because of no equity in property , and in conversation and confirmation with DFD at that time that iva would finish dec 2012.
I have informed them that as far as i was aware ,if i did take out any ppi though can not rember because i had so many creditors and it was over 4 years ago , that i was not mis sold any ppi .
Now they are saying that they will have to discuss this with the company they recommended , and then go back to my supervisor .
But can they legally do this ? , as final agreement was made in march and agreed with all creditors .
Can we complain or take legal action against this , if anyone out there with any info , would be appreciated as i think that this is wrong.

[FoggyBrain]

I agree -- I have no qualms about trying for PPI up to year 4 -- but I do think it unreasonable to delay completion purely because the IP hasn't got his, or her, behind into gear earlier,

[upset iva]

DFDare threating me with delay to completion of iva. Even though myextension of completion was agreed in march by all my creditorsbecause of no equity in property , and in conversation andconfirmation with DFD at that time that iva would finish dec 2012originally due to finish june 2012. I have always kept payments todate and have sent in relevant papers for reviews , and the onlyclause i can remember in contract was the extension if no equity inproperty .
I have informed them that as far as i was aware ,if idid take out any ppi though can not rember because i had so manycreditors and it was over 4 years ago , that i was not mis sold anyppi .
Now they are saying that they will have to discuss this withthe company they recommended , and then go back to my supervisor.
But can they legally do this ? , as final agreement was made inmarch and agreed with all creditors 100% .
Can we complain ortake legal action against this , if anyone out there with any info ,would be appreciated as i think that this is wrong

[debtinfo]

well if there is actually an asset such asa PPI claim then yes they could delay the completion until all assets have been dealt with. Although 9 months should be plenty of time to deal with any PPI claim so if started now there should not really be a delay.

The real question is if there is a PPI claim rather then if they can delay completion

[harveybobbles]

A friend of mine had an IVA completed in September 2011 but the paperwork didnt come thru until December 2011. He then reclaimed the PPi from all of his creditors DIRECT as the IVA was finished.

The original debt was close to 30k. He paid £8000 into the IVa over 5 years. The IP took their fees which left about 4000 to dish out to 7 creditors.

Then reclaimed the PPi and got just under 2000 back LOL!

Not sure why your IP is asking you to cleam the PPi before they issude the completion papers..? Is this there way of getting more money out of the deal?