Making PPI claim while on an IVA
in_orbit74
Posts: 3 Newbie
My father is just over a year into an IVA and has been invited by his Insolvency Practitioner to make a PPI claim. They have put him in touch with a claims management company they are affiliated to, and that company has just sent him a hefty set of Letters if Authority to sign (there are many creditors involved).
Before he does anything further, I'm trying to find advice for him regarding making such claims under an IVA. My suspicion is that any compensation he wins will go straight into paying off the IVA, and won't do anything to reduce the amount or term of it. I've even read that the fees charged by the claims management company (about 30% of any sum awarded according to their literature) may NOT be taken automatically from the compensation won, which would mean my father is landed with an additional bill on top of his current IVA payments.
In short, is it worth him making a PPI claim? Or is it merely opening a new can of worms?
Before he does anything further, I'm trying to find advice for him regarding making such claims under an IVA. My suspicion is that any compensation he wins will go straight into paying off the IVA, and won't do anything to reduce the amount or term of it. I've even read that the fees charged by the claims management company (about 30% of any sum awarded according to their literature) may NOT be taken automatically from the compensation won, which would mean my father is landed with an additional bill on top of his current IVA payments.
In short, is it worth him making a PPI claim? Or is it merely opening a new can of worms?
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Comments
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A PPI claim should never be done via a third party - read Martin's guides on the subject. By doing any claim himself your father will get to keep 100% of anything that is awarded back to him, so that's the first thing to think about.
My worry would be that judging by the sound of things, he may already have gone too far with the process to now take back control and manage the claim himself.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Absolutely avoid using a Claims Management Company, even one "affiliated" to the Insolvency Practitioner. Just bin the LOAs you've been sent and make your own complaint.
As to whether it's "worth" making a complaint, that's something only your father can decide.
I would expect any "setting off" from PPI redress will indeed be paid into the IVA, but this can't be a bad thing can it?
The deadline for PPI complaints is now only two years away, so if you're hoping to complete the IVA and then make a complaint, you might be too late.0 -
Hang fire here.
Your father is currently insolvent, the funds are not his to claim any longer.
He can pursue this himself, but he won't see any of the money because he would be expected to release as much money as possible for the benefit of his creditors.
The fact he's in an IVA changes things dramatically.
See here :
http://www.debtadvicefoundation.org/questions/how-ppi-compensation-dealt-ivaI’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Indeed, but why involve a third party claims firm? 100% of the redress should go towards the IVA, not upwards of 30% to a claim firm.sourcrates wrote: »He can pursue this himself, but he won't see any of the money because he would be expected to release as much money as possible for the benefit of his creditors.0 -
Moneyineptitude wrote: »Indeed, but why involve a third party claims firm? 100% of the redress should go towards the IVA, not upwards of 30% to a claim firm.
It makes no difference to the OP so why bother ?
Let them do all the legwork.
Different kettle of fish if he was going to benefit from it, but he won't, so may as well cooperate with the IP and just let them get on with it.
IVA companies are notorious for not issuing certificates of compleation due to ongoing PPI. claims.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
He may get a portion of the interest back which is enough reason to do it.
If there is enough without a firm getting a cut, it may pay off his IVA.
Besides, there's nothing like taking a bit more responsibility and a bit more self empowerment by taking control of this and doing it themselves. They already have all the info to complain.Shampoo? No thanks, I'll have real poo...0 -
sourcrates wrote: »IVA companies are notorious for not issuing certificates of compleation due to ongoing PPI. claims.
Any complaint direct to the company should take no more than 8 weeks. In fact, if it takes longer than this, the person complaining can go straight to the ombudsman.
Any complaint escalated to the Ombudsman can take up to two years, but in practice, usually about 6 months being as the complaints are slowing down for PPI now.Shampoo? No thanks, I'll have real poo...0 -
Any complaint direct to the company should take no more than 8 weeks. In fact, if it takes longer than this, the person complaining can go straight to the ombudsman.
Any complaint escalated to the Ombudsman can take up to two years, but in practice, usually about 6 months being as the complaints are slowing down for PPI now.
Mine was delayed 14 months because of a similar issue.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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