Reclaiming PPI after an IVA

martin72

Title says it all really. I am hoping someone might have some info on reclaiming PPI if you have had a settlement IVA?

Basically my two largest creditors (excluding my mortgage which had first charge and was paid in full) were Egg and Lombard. I had PPI on both but when I broke my leg both said I wasn't covered as a self-employed person. I had complications with my leg and long story short had to do the IVA.

That was back in 2005. Since then I have been painfully rebuilding but have always assumed that I wouldn't be able to reclaim my PPI or bank charges? Does anyone know what the situation is. My thanks in advance.

M

dunstonh

This is a grey area with no hard and fast rules. The Govt recently clarified the position for bankruptcy (saying reclaimed PPI belonged to the Official Receiver to distribute to creditors). However, no such clarification has been issued for IVAs.

Some people have been paid. Some have not. It can depend on the lenders and where the debt was. For example, if you had PPI on a debt that was fully repaid and your complaint is successful, you will get the money. However, if the debt was written off as part of a settlement, the lender can use the money against that debt. They cannot use the money against other firms debts. Some people have been successful in getting money even if there was an amount written off.

Bottom line is that you dont know if you will get the money if the debt was written off as part of a settlement and you must not under any circumstances use a claims company.

martin72

Thanks Dunstonh. I think that helps? Just to clarify, I could try and reclaim ven though I had a final settlement IVA and the whole loan was not paid off but it is possible that a) I won't receive any money b) any money I receive may be subject to prior claim from my creditors even though my IVA was final settlement ...

I guess it's still worth trying as to be honest I am still pretty upset about the fact that if they had honoured their cover I would have had a realistic chance of covering my debts without having to go down the IVA route.

Just as a matter of interest does the dispersement of the PPI claim as applied to Bankrupcy still apply after the bankrupcy period is served? (5 years?)

dunstonh

I could try and reclaim ven though I had a final settlement IVA and the whole loan was not paid off but it is possible that a) I won't receive any money b) any money I receive may be subject to prior claim from my creditors even though my IVA was final settlement ...

Other creditors cant get the redress. Only the lender with the PPI and only if their debt was not settled in full.

Just as a matter of interest does the dispersement of the PPI claim as applied to Bankrupcy still apply after the bankrupcy period is served? (5 years?)

Doesnt matter. PPI redress is considered a pre-bankruptcy asset irrespective of how many years have passed.

stecast

Just to add to this Martin72,

Make sure you have received your certificate of completion before you start any ppi claims.

I'm in the middle of doing a claim, i have had money awarded to me from the ppi, but the bank says they will be using this money to offset the debit i have with them so i will not see the money myself.

After reserching, it is a very grey area as to weather the money is mine or not, some people manage to win there case and some people do not.

I have regected my offer on the grounds

[FONT=Verdana, sans-serif]I amsorry to inform you but I will be rejecting this offer of ppiinsurance on the grounds that I have no debit with you to offsetagainst so I ask you to reconsider your offer.[/FONT]

By rights my IVA is finished and my debits have been settled, i have spoke to my Ip manager who advised me this was the best plan of action but was not a guarantee on if i will get the money as no law has been laid on IVA and PPI claiming and i might have a fight on my hands with the bank

Anondebtadvisor

Some have been to the FSO and been awarded their money when this has happened

Worth a try?

dunstonh

Some have been to the FSO and been awarded their money when this has happened

Equally, the FOS have gone with the lender on such cases as well. It is not consistent.

stecast

My IVA ip manager was very supportive on this matter that the ppi money should be mine as the agreement with a IVA is the debits will be written off when the IVA is finished.

I think the problem is, when IVA's were introduced they was no thing as a PPI claim so nothing was set on this as to if you claim after a IVA, from what i know this has now been sorted with bankruptcy and ppi but nothing sorted with IVA's and claiming.

As they has never been a court case on IVA's and ppi, the banks are a bit stuck on what to do, some seem to be awarding the money without any problems and some do not.

The problem will not go away so it does need a set law setting on this

martin72

stecast wrote: »

I think the problem is, when IVA's were introduced they was no thing as a PPI claim so nothing was set on this as to if you claim after a IVA, from what i know this has now been sorted with bankruptcy and ppi but nothing sorted with IVA's and claiming.

It sounds to me like it's worth trying. Worst case I have wasted some of my own time I guess ...

Thanks for all your replies and information folks.

scoffee

I think it is well worth trying. I have just had a letter from HSBC saying that in essence I should of told them about my PPI claim when I entered my IVA (5 years ago!) which is now (4 years ago) satisfied and completed.

I am certainly going to challenge them,