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    • in_orbit74
    • By in_orbit74 5th Sep 17, 10:40 AM
    • 2Posts
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    in_orbit74
    Making PPI claim while on an IVA
    • #1
    • 5th Sep 17, 10:40 AM
    Making PPI claim while on an IVA 5th Sep 17 at 10:40 AM
    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?
Page 1
    • EssexHebridean
    • By EssexHebridean 5th Sep 17, 10:58 AM
    • 8,141 Posts
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    EssexHebridean
    • #2
    • 5th Sep 17, 10:58 AM
    • #2
    • 5th Sep 17, 10:58 AM
    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.
    Last edited by EssexHebridean; 05-09-2017 at 11:01 AM.
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    • Moneyineptitude
    • By Moneyineptitude 5th Sep 17, 11:09 AM
    • 18,736 Posts
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    Moneyineptitude
    • #3
    • 5th Sep 17, 11:09 AM
    • #3
    • 5th Sep 17, 11:09 AM
    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.
    • sourcrates
    • By sourcrates 5th Sep 17, 11:42 AM
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    sourcrates
    • #4
    • 5th Sep 17, 11:42 AM
    • #4
    • 5th Sep 17, 11:42 AM
    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-iva
    Last edited by sourcrates; 05-09-2017 at 11:53 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

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    • Moneyineptitude
    • By Moneyineptitude 5th Sep 17, 12:18 PM
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    Moneyineptitude
    • #5
    • 5th Sep 17, 12:18 PM
    • #5
    • 5th Sep 17, 12:18 PM
    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.
    Originally posted by sourcrates
    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
    • By sourcrates 5th Sep 17, 12:42 PM
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    sourcrates
    • #6
    • 5th Sep 17, 12:42 PM
    • #6
    • 5th Sep 17, 12:42 PM
    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.
    Originally posted by Moneyineptitude
    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 Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • -taff
    • By -taff 5th Sep 17, 6:58 PM
    • 7,113 Posts
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    -taff
    • #7
    • 5th Sep 17, 6:58 PM
    • #7
    • 5th Sep 17, 6:58 PM
    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.
    • -taff
    • By -taff 6th Sep 17, 6:24 AM
    • 7,113 Posts
    • 5,112 Thanks
    -taff
    • #8
    • 6th Sep 17, 6:24 AM
    • #8
    • 6th Sep 17, 6:24 AM
    IVA companies are notorious for not issuing certificates of compleation due to ongoing PPI. claims.
    Originally posted by sourcrates
    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.
    • sourcrates
    • By sourcrates 6th Sep 17, 9:42 AM
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    sourcrates
    • #9
    • 6th Sep 17, 9:42 AM
    • #9
    • 6th Sep 17, 9:42 AM
    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.
    Originally posted by -taff
    Mine was delayed 14 months because of a similar issue.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
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