PPI claims and an IVA

cardomon

My IVA is spent in July so I'm finally free of it.
Today I recieved a letter from my IVA supervisor, it contains the following.

"When you entered into your IVA it was not common knowledge that compensation for PPI could be reclaimed.

It is our duty as supervisor to maximise any recoveries of funds that can be introduced into your IVA and challenge creditor claims where we can. We therefore recommend that you persue these possible compensation claims."

It then goes on to tell me that they have appointed Equity in Finance, "and dont worry there is no charge to you as they are paid only from successful claims"

It also goes on about other loans "that can improve my financial position significantly by releasing equity in my property" (I have no property).

I am loathed to do this through my IVA they have taken me for enough especially with 4 months left to pay. So my question is is this an order ? or baring in mind the word "recommend" is this just fishing for more business.

Thanks

FoggyBrain_2

Hi -- not with DFD by any chance are you ? There have been lots of discussions about this over on another forum. Incdentally, do you have any mis-sold PPI to reclaim? If not write a firm but polite letter stating you have nothing to claim.

cardomon

No I'm with Tenon. I've literally got 4 payments left. totalling just over £1000.
According to the costs the firm they are "recommending" I use will make more than that. TBH I'd sooner write a letter saying I love PPI than do this and feather their nests.

There almost certainly will be a claim yes.

FoggyBrain_2

Ah, right, DFD use Equity in Finance too ( and apparently they are making a pig's ear of the job!).

cardomon

Yes I just had a look at the iva forum, one poor guy only had one payment left. I'm getting to the stage where I just don't care anymore. These financial firms are all in it together.

blazey

I too received this special couriered letter from Tenon today. I thought that maybe it was just me.

I plan on ignoring their recommendation. When reading the letter, it was clear that Tenon are worried that their clients may pursue claims by themselves or via different claims companies.
It even said in the letter that sometimes the lender may send the documentation incorrectly to me rather than Equity In Finance, and if this happens, not to contact the lender, but send the documentation straight to the claims company. Talk about desperate or what!
Tenon want their clients to sign these forms and let EIF take their fee from me for reclaiming PPI that's only going to go back to the original lender anyway! Jog on Tenon and EIF comes to mind!

What I want to know is, if I claimed back mis-sold PPI myself directly with the lender, and the lender pays out, is it illegal to keep this money, or by law do I have to pay it into my IVA?

cardomon

Yes I thought it was a mass mail because it mentioned property which I don't have.
I called them to ask and when I asked the question Do I have to sign and return these forms she kept stopping short of saying a definate yes, it was always we advise and stuff like that.
My understanding is you do have to declare PPI as a windfall in fact I had spoken to somebody about this a friend of a friend. They were very dismissive of Tenon and had I not had so little time left on the IVA I might well have stopped it. Their advise was to hang fire with any PPI claims until the IVA is spent.
I wouldn't have minded if they had done this 4 or 5 years ago, but to do it so late in the day is just dishonest.
Also bare in mind that not only do EiF get their cut but so do Tenon, you pay them based on a %.

marie100

Hi, I also rec the same letter today sent by special delivery, my IVA finished May 2011, although i still haven't received my completion certificate, so am i right in thinking i am under no obligation completing the forms? Thanks

FoggyBrain_2

Until I see one of these letters I cannot be sure, but, from what I gather, they are only recommending that you complete the form, so you shouldn't be obliged to do so.

Technically, Marie, until you get that completion certificate you are still bound by the IVA. To date I don't believe the subject of windfalls in the period between finishing your payments and getting the certificate has been tested.

pukkamum

My sister and i were discussing this she works for an IVA company and has had many people being left paying big fees after claiming PPI compensation but obviously the compensation just being paid straight into the IVA but they still have to find the fee payments themselves.

FoggyBrain_2

Yes, Pukkamum -- this is a big risk if you use any reclaim company, other than that foisted upon you by your IP. However, I maintain that, as claims are being uncontested at the moment, all it takes is one letter, and I object to a claims company getting up to a third of any payout for writing one letter!

I understand that any repayment will need to be paid into the IVA, however I would rather make a claim myself and ensure the creditors got the money rather than the claims company !