Ppi help!!

bettychick1

Hi there i hope some one can help me, bIt of a long story.

I took out a loan with WFSL a few years a go. then i got into debt, i entered into an IVA and WFSL where one of my creditors, in may 2011 i payed a full and final settlement to all my creditors through my IVA company. this should mean all my debts with all creditors who entered into the IVA are payed off, by law (am i right?). Then in nov 2011 the FSCS wrote to me telling me my ppi was miss sold, i filled out composation form, i then recived a letter a few weeks later telling me im entilted to £1800 composation. Great. but!!!! they then went on to tell me that The total compensatable loss amount will be deducted from the outstanding balance of your existing liabilities with WFSL. but if i have paid my IVA off then surley i have no outstanding balance and no existing liabilities. so i made a complaint to the FSCS and got the same answer back. is there anything i can do!! please help.

dunstonh

If the IVA included a write off of debts, then the redress payment can be used against the amount written off.

In effect, you never paid the PPI as you defaulted and left the lender with the debt. So, therefore you shoudlnt get the redress payment as that would logically be wrong.

maxzorin_2

i'm not so sure, if the company accepted it as 'full & final settlement' then you are entitled to a refund in my opinion.

Although I would not usually recommend using a company to reclaim PPI, in a case such as yours I would go down this route. There are companies you can use who are geared up for this exact scenario, no win no fee of course.

Although you may think its morally wrong, if it weren't for the miss-selling in the first place then your debt would have been less & you may never had ended up in an IVA, so I say go for it. I would give you the name of a reputable company but not sure its allowed.

Hopefully its not too late cause you did fill in the form.

dunstonh

i'm not so sure, if the company accepted it as 'full & final settlement' then you are entitled to a refund in my opinion.

Its not a case of opinion. Redress is allowed to go against amounts written off with that lender.

Although I would not usually recommend using a company to reclaim PPI, in a case such as yours I would go down this route.

That is the worst thing possible that the OP can do. The claims company will bill against the full amount of the redress. Even if not a penny was paid. So, they would just end up with a bill to pay and nothing to show for it.

Although you may think its morally wrong, if it weren't for the miss-selling in the first place then your debt would have been less & you may never had ended up in an IVA, so I say go for it.

The size of the PPI is unlikely to have made any difference.

I would give you the name of a reputable company but not sure its allowed.

If they took this case on then they would not be reputable.

magpiecottage

maxzorin wrote: »

i'm not so sure, if the company accepted it as 'full & final settlement' then you are entitled to a refund in my opinion.

I disagree. You MIGHT be able to persuade a court of this but you would have to prove that it had no right of set off.

On the other hand, I think a bank would almost certainly be able to persuade an Ombudsman that it was fair and reasonable for it to set off any redress against the debt.

Although I would not usually recommend using a company to reclaim PPI, in a case such as yours I would go down this route. There are companies you can use who are geared up for this exact scenario, no win no fee of course.

That is extremely poor advice. The ambulance chasers are unqualified and capable only of taking a lot of money off their victims for doing very little and nothing that the victims could not do for themselves.

Worse, if they win and the bank says "okay we will award £5,000 but we will set it off against the debt". The OP would see nothing but, because of the hollow victory that the ambulance chaser had won would be landed with a bill of perhaps 25% plus VAT - a total of £1,500.

Although you may think its morally wrong, if it weren't for the miss-selling in the first place then your debt would have been less & you may never had ended up in an IVA

That is speculation, not evidence. To win you would need to prove it was more likely than not that the PPI alone caused the default. That would be a very tall order.

so I say go for it. I would give you the name of a reputable company but not sure its allowed.

That is like saying you will give the name of a reputable fascist dictator.

maxzorin_2

Appreciate all the comments above

I am fully aware of people ending up with bills for refunds that they didn't actually receive because they were offset & that is no good obviously. But still think its a grey area when the IVA has ended.

All I know is that the literature I have seen actually says "We will only charge our fee of 25% plus VAT of the amount you receive, if we don't recover anything we don't charge you". So 'no receive, no fee' in essence.

Of course people can reclaim themselves but even this site recommends using a claim handler if your case is really complex & you don't know how to approach it or have the time even with the assistance of forums etc.

dunstonh

We will only charge our fee of 25% plus VAT of the amount you receive, if we don't recover anything we don't charge you". So 'no receive, no fee' in essence.

You are reading it wrong. They base their fee on the amount you receive. Receive means what the company pay out. Not which account it ends up in.

but even this site recommends using a claim handler if your case is really complex

Martin's view on claims companies is very much the opposite of most consumer groups. Seeing as a claims company has to use the same free-of-charge complaints process as the individual and the same people at the firm look at the complaint (or FOS or FSCS) then there really is nothing more to offer. There has also been suggestions that claims companies actually have lower success rates than personal complaints due to their over reliance on template complaints which in themselves have lower success rates.

maxzorin_2

Yes I suppose I could be, it is a little ambiguous. It's just it specifially goes on to say "People are often worried that lenders will award compensation but keep it because of their previous IVA", A large proportion of our work is for people that have completed IVA's, etc etc,

Anyway I am in no way a fan of these companies but thought they were useful perhaps 5% of the time but after considering your point below then maybe not.

Have a nice evening.