IVA and PPI Question

AnnieFE

Hiya,

I have a question regarding IVA and hope that someone could answer this. Not sure if it's the right forum either or if I should go to the PPI one.

Anyway, here's my question: My partner is going through an IVA and is on his best way to have paid it off next year. Today we received a letter from Pay Plan (which deals with his IVA) saying that they have involved a company to get back his PPI that he had when he used to have the Loans, Credit Cards etc.

They want him to get the PPI back so that they can use it to pay a large amount of his outstanding debt, but this company would also charge him for this service, around 40% of whatever he will receive back.

My question now if this is legitimate, because I personally think that this is a bit of a cheek :mad:. I would appreciate if someone could answer me this question.

Thanks in advance.

Annie

Anondebtadvisor

A few companies are doing this as they believe they have a duty to investigate if you had PPI.

If successful the money will go to the IVA for the benefit of creditors.

It is important to note that not all companies do this - some just ask the client at the time of review if they want to persue PPI and if not proceed as usual.

If your partner had PPI but does not believe he was mis sold then there will not claim anyway - they cant ask you to make a fraudulent claim

Sllimnivek

Just had the same details sent to me, and a missed call from the company concerned. Apart from not believing i have been miss sold this insurance its concerning that the company 'employed' to recover this money will take 40% of it.
Surely it would be in the banks interest to ask those of us in an iva to fill in a form and return it so they can take the full amount.......is that too simple?

jan_n_kj

My partner and I both got one of these letters from Pay Plan and wanted to know if we're obligated to go through with the claim. We do believe we were mis-sold the insurance as we tried to claim against it two years before we had to resort to the IVA and did not see a penny of it. We really didn't want to go through with this as it meant handing it all over for the debts - minus the 40% the claims company will take. I really don't believe them when they say the claim will accrue interest while its being investigated and that is to come to us (yeah right, sell me another one!). Does anyone know if we have to do this whilst under the IVA - which is due to finish next year?

chirpychick

We are with payplan also and sometimes when they try to hard sell other things it really gets my goat!

Your OH if he thinks has been missold PPI can reclaim it himself with 10 minutes on the computer and a 1st class stamp! which seems to me a more favourable option than being charged 40%.

We have done just that and have been told that we may keep a small percentage of what we get but the rest will go towards paying off our debt (which is fine by me!!!).

Payplan_company_representative

Hi all,

just for clarification... we are working with the company to reclaim missold PPI for our IVA clients. If you did not have PPI or were not missold PPI then you do not need to pursue anything. However if you do believe that you were then you can fill in the paperwork and send it back.

There is a fee however all of this will go through the IVA so will not be payable by you.

I hope this clears things up a little, however if you have any more questions please do not hesitate to ask.

For more information we have posted a full explanation here >> http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=43938

debtinfo

Hi Payplan rep,

Im sure that everyone is aware that as an asset the PPI reclaim monies would go into the IVA, that is not what is concerning people here.

What is of interest is the way in which the monies are then redirected out of the IVA.

If the debtor reclaims the money themselves and pays that into the IVA then that results in a greater return for their creditors, does it not?

If you employ a firm to act on your behalf which takes a 40% fee then that results in a greater payment on fees from the assets available and a lower return to creditors, does it not?

Therefore it would seem to me that if the aim is to provide the best return to creditors possible then the sensible thing to do would be for the debtor to claim themselves and have the PPI claim paid dirrectly to the IVA.

Would you agree with the points that i have made?

Also please could you clear up what your relationship is with the claims company, whilst it is very generous of you to provide them with work, does payplan receive any sort of payment or inducement for that partnership?