IVA Provider appointing Firm to claim PPI on loans within the IVA

magpiecottage

This could actually backfire on the IVA company. To trade they will, I think, need a Consumer Credit Licence and that, in turn would put them under the Jurisdiction of the same Financial Ombudsman Service that rules on PPI complaints.

Thus if you complained that they had misadvised you to use a claims chaser for something that was easy to do yourself then there is every possibility that FOS would award the fee against them.

However, it would be better to refuse and to complain yourself if you think you have a case.

amos01_2

Hi All,

I have just completed an IVA and settled early, whilst waiting for the completion certificate the IVA company has written to me saying they will not complete this until all PPI claims has been investigated, I have already started this process myself and know that I will be awarded quite a lot of money for this missold PPI. The IVA company are insisting I use a company they have 'teamed up with' charging 33.95% to do so!! I am refusing at the moment until I can get any help with what my rights are. Although I understand that any windfall etc (which is what this will be classed as) has to be paid to my creditors to pay them back 100p in the £, the IVA company are putting a considerable amount of pressure on me to sign the form saying that they could fail my IVA if I dont, I dont understand why, if they are acting in the best interests for my creditors they would allow 33.95% of this money to be swollowed up by a company, when I have / could do this for free myself.

Any comments welcome :-)

Aidanb_2

Hi All,

I have recieved the same pack and got a call from then a few days after saying fill it out and send it back and they will process it for me I have phoned my IVA company and they said i am more than in my right to try and go it on my own but i might run the risk that if i win then i might not get any back as they have heard in some cases that the creditors keep the money and off set it on what was owed. The thing is i am awaiting my certificate of complication should be some time next month. The company who fights for the PPI gets 35% then i get 8% of the interest off the tax i have paid. I think this is a con and wont be going with them and will be trying to go it myself. has anyone had any luck with this?

Regards

Aidan

FoggyBrain_2

Hi Aiden. I claimed some PPI before I went into my IVA, using the letters on this site. It, literally, took one letter to the lender and I was paid out a couple of weeks later. I would certainly begrudge a claims company getting a third for writing one letter !!!!!

nottoolate

if the iva has completed timewise is it legal for the ip to refuse completion.

i though they had to notify the court of completion within 28 days or something?

debtinfo

well it has not really completed if not all assets have been dealt with has it?

To the others, possibly you could write to the IP stating that you understand that the money will go to the IVA that you have started the process and you agree to send them copies of any correspondence and agree to deliver the proceeds when they arrive - therefore no need for their company, always stess that you believe this guarantees the greatest return for the creditors which surely must be the IP's primary concern, if he feels it necessary he may convene a meeting of creditors and ask them if they would like to receive all of the money or only 70% of it

nottoolate

surely there must be a line in the sand somewhere though? especially if the debtor does not think they were misold?

would be unfair for an ip to suspend things indefinitely when its not even clear there is an asset in the first place? cant the debtor apply to the court for the arrangement to be discharged?

debtinfo

i suppose if they took years to do it but a few months probably not,

Do you think you were not miss-sold, would you be willing to sign an agreement stating that you were not miss-sold and that you will never make a claim and that if it does turn out to be misssold that the full proceeds will go to the IVA

lucieloo

thanks for your reply. I am going to seek advice on this as i feel im being forced to do something i do not want to to.I will not tell lies to give someone a 40% profit out of my debts. I do worry and i feel that the iva provider should be there to help me not make me worry, as that is what i was told when i took the iva. If it failed and i had to go to court it would be thrown out surely? A nd what does dishcharge the arrangement mean>?

lucieloo

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GET YOUR FREE REPORT Can I make a claim for PPI miss selling if I am in an IVA 28 February 2011
James Falla (about the author)

If you have been paying for Payment Protection Insurance (PPI) for any of your loans or other personal credit facilities you may be eligible to make a mis-selling claim against the loan company. We consider what would happen if you do this while you are in an IVA.
Over the past few years there has been considerable discussion about the bank’s miss selling of payment protection insurance (PPI).
Although the banks have taken court action to try and minimise the number of people who can claim that they were mis-sold PPI, there have been many successful claims and compensation payments made.
If you are currently in an Individual Voluntary Arrangement (IVA) you will no longer be making payments to your creditors or towards any payment protection insurance that you may have taken out.
However, if you had payment protection insurance and you feel that this was mis-sold to you, even though you are in an IVA, there is no reason why you should not make a claim for compensation.
If you have been mis-sold payment protection insurance, this is totally unrelated to the fact that you were subsequently unable to pay your debt and entered into an IVA.
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Compensation payments treated as windfalls

It is important to realise that if your claim for PPI mis-selling is successful while you are still in an Individual Voluntary Arrangement or while you are applying for an IVA, then any compensation payment that you receive will be classed as a windfall.
This means that the compensation will have to be paid into your IVA and will be put towards repaying the debts you owe to all of your creditors.
As such, there is a strong argument which says that there is little point in starting PPI mis-selling action while you are in an IVA. Nevertheless, recently some Insolvency Practitioners (IPs) have encouraged their clients who are in IVAs, to start PPI mis-selling claims.
They argue that people in IVAs have a duty to maximise the return to their creditors and that making a mis-selling claim will help to achieve this.
Other IPs argue that taking such action is ultimately making the position of one or more of the creditors worse while benefiting others – preferential payment in reverse. It is therefore is not in the equal interest of all creditors and should not be considered.
It should also be noted that if your Insolvency Practitioner is paid based on a percentage of the money which the IVA returns to creditors, then they also stand to benefit from a successful PPI claim. As such there is a question as to whether their encouraging you to make a claim is actually self motivated.
Delaying your PPI claim until after you IVA
Given that any claim payout made while your IVA is still operating would have to be paid into the arrangement, you could decide to delay making your claim until after your IVA has finished. That way you will be able to keep any payout you receive.
Alternatively given that the claim process will often take a number of months or even years, you could start a claim towards the end of your IVA in the hope that any compensation will not be decided until after your IVA is finished.
Any windfalls you get after your IVA has finished that you did not know that you would receive at the time it was in place will be yours to keep.

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Inform your insolvency practitioner
Ultimately whether or not you feel that you have been mis-sold payment protection insurance and want to claim compensation for this is up to you.
There is currently no obligation on people in IVAs to make mis-selling claims. If your IP suggests that you do so, it is purely a personal choice.
If you do decide to start a claim while you are still in your IVA, you must remember that any compensation you do receive while the arrangement is still in place will have to be paid to your creditors as a windfall.
As such, you should make sure your IP knows you are making a claim so that if any compensation is paid, they can arrange for this to be paid to directly into your IVA and the payment of any claims company fees.
PPI mis-selling claim guide
For more information about how to make a PPI miss-selling claim please click on the following link: http://www.beatmydebt.com/self-help-manuals/PPI-miss-selling-claim-guide.htm
I hve just come across this.