IVA and claiming PPI during and after completion

IVAquestion · 14 January 2018 at 9:54PM

Hi everyone.

Im new to the forum and just looking at asking a few questions regarding claiming PPI during and after completion of an IVA.

Just a little bit of background before I continue, im writing on behalf of my husband as I feel he hasn't been treated fairly with his IVA and PPI claims.

So my husband started an IVA in 2009 and completed in January 2015,
he received several letters from equity in finance regarding claiming his PPI. He also received a letter from payplan stating that the terms of his agreement were going to change and that they were basically know able to claim his PPI to reduce his debts, but he never had to sign anything to agree to the changes in the agreement, surely a change in agreement would need to be agreed with a signature? Equity in finance claimed over £7000 in PPI, to which he received a percentage of this (payment of interest)

My main concerns are he owed £19000 and repaid £24300 meaning he has over paid by a considerable amount. We have just been looking through all the paperwork and it turns out he has paid payplan nearly £10000 for things such as nominees fees, supervisors fees, costs of arrangement. Know I understand they cant work for free but is £10000 not a bit ridiculous, specially when they claim on there website, they offer free debt advice and debt management. Clearly not in my husbands case as its cost him nearly £10000. Does this sound legit or would you investigate further?

He has now received a letter from his previous bank regarding cardholder repayment protector, they state that he needs to send lots of information regarding his IVA, surely now he has completed his IVA his assets are nothing to do with them anymore, especially when he entered the IVA owing 3 creditors and I believe they have claimed PPI from companies and accounts not included in the IVA arrangement, is this something they can do?

Thank you for reading, and hope you can help.

ToxtethO'Grady · 15 January 2018 at 12:00AM

It has recently been ruled in the appeal court that PPI claimed after an IVA has ended, doesn't matter how long ago it ended, can still be claimed by the Insolvency Practitioner as that money could have been used to reduce the debt.

sourcrates · 24 January 2018 at 1:32AM

All IP’ s charge for IVA’s.

If he had an “all assets” IVA then PPI claims after the event can be claimed by the IP yes.

Basically with any form of insolvency assets from any quarter can be used to offset the debt and the original amount of interest that would of accrued, if available.

This is not always explained very well by firms selling IVA’s, that’s why it’s vital to check your paperwork.

PrettyKittyKat · 24 January 2018 at 7:23PM

The fees are what they are. You husband benefited from 5 years of frozen interest. Their advice was free, it was the supervising of the IVA your husband has paid for. This isn't costing your husband anything, infact he is benefited (you say he received the interest) so he should be quite pleased to not only be debtfree but be receiving money back!

However, if there is potentially more money being claimed it is worthwhile calling to ask what the 100p in the £ figure would be. This is 100% of the debts plus associated fees. Therefore you can monitor that the total amount paid doesn't exceed this, and if it does then the additional money would be paid to your husband.

IVA and claiming PPI during and after completion

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