IVA Help

Depth_Charge

Anondebtadvisor wrote: »

Many people in IVAs who are having PPI issues and coming to the end of their arrangement, so would have entered into an IVA 5/6 years ago, nobody could have envisaged how big the PPI fiasco would have become.

You can find the guidance on PPI issued by the regulatory bodies here - https://www.icaew.com/~/media/Files/Technical/Insolvency/helpsheets-and-checklists/personal-insolvency/guidance-note-on-payment-protection-insurance-claims.pdf

Hi

Thank you for this:)

Yes, I agree

But where is the consistency?

What about the huge amounts taken out of the arrangements, who interests is this in?

What about potential new IVA clients?

How do we explain some of Stepchanges information?

My take:)

Anondebtadvisor

I agree that there is a problem with consistency where PPI is concerned and all new clients should have PPI explained to them, particularly how any reclaim will be dealt with in their IVA.

What part of stepchange information are you refering to? it states in that guidance that PPI will go into the IVA depending on the terms of the IVA proposal?

Depth_Charge

Anondebtadvisor wrote: »

I agree that there is a problem with consistency where PPI is concerned and all new clients should have PPI explained to them, particularly how any reclaim will be dealt with in their IVA.

What part of stepchange information are you refering to? it states in that guidance that PPI will go into the IVA depending on the terms of the IVA proposal?

Hi

Yes, I agree, should be, is this always the case? and how in depth is PPI explained at the outset?

Amongst other things I am a little confused on paragraph the below from the Stepchange Website.........

"What does StepChangeVA do with PPI reclaims? The option to reclaim is yours, should your claim prove successful you need to keep us informed of what your creditors intend to do. - See more at: http://moneyaware.co.uk/2012/05/can-i-reclaim-ppi-while-on-an-iva/#sthash.MWUmAyKi.dpuf

PS - thanks for the input:)

Anondebtadvisor

Thats right the option is the clients as to whether they reclaim or not, just because someone had PPI it does not mean that is was automatically missold to them, they might have wanted it and knew they had it, in this case there is no claim to be made.

A lot of IVA proposals in the past did not capture PPI as they were defined asset IVA and therefore PPI oftern fell outside the scope of the IVA - hence Mass variations being held by some IVA firms, to ensure the T&Cs are ammended to caputure PPI!

Stepchange just like other IVA providers had a lot of defined asset IVAs - so are they saying the reason it is optional because the PPI is not captured so there is no point.

I cannot be 100% sure as i have not seen a recent Stepchange proposal but i bet that more recent IVA proposals has the now standard all asset clause and hence PPI is now captured in the proposal.

Maybe Stepchange can confirm this as it would be useful to know?

Depth_Charge

Anondebtadvisor wrote: »

Thats right the option is the clients as to whether they reclaim or not, just because someone had PPI it does not mean that is was automatically missold to them, they might have wanted it and knew they had it, in this case there is no claim to be made.

A lot of IVA proposals in the past did not capture PPI as they were defined asset IVA and therefore PPI oftern fell outside the scope of the IVA - hence Mass variations being held by some IVA firms, to ensure the T&Cs are ammended to caputure PPI!

Stepchange just like other IVA providers had a lot of defined asset IVAs - so are they saying the reason it is optional because the PPI is not captured so there is no point.

I cannot be 100% sure as i have not seen a recent Stepchange proposal but i bet that more recent IVA proposals has the now standard all asset clause and hence PPI is now captured in the proposal.

Maybe Stepchange can confirm this as it would be useful to know?

Hi

Interesting

Are you clearly saying that people in IVAs have the option of making or not making claims for PPI misselling?

Yes, it would be interesting to hear Stepchanges view on this and the content of their website.

Again thank you for the input, the information being 'generated' on this thread can only help people with concerns, enquiries and questions reagarding PPI claims & IVAs

Good stuff!

My take

Anondebtadvisor

Yes that is exactly what i am saying, people cannot claim they were mis sold PPI if they knew they had it and wanted or needed it - just having PPI alone does not mean it is mis sold.

Recently i came across a case where someone did not know they had PPI and discovered they had it on an old loan, he originally had £22k of debts and had already paid in contributions of £7500, the PPI refund came to just over £17k. He was half way through his IVA so he paid 100% of his debts back with IP fees.

He settled his IVA and debts in full in 2.5 years, client is happy as he gets out of his IVA and can get on with the rest of his life.

In a DMP he could have paid more than £2500 (IP fees) in interest on these debts.

Depth_Charge

Anondebtadvisor wrote: »

Yes that is exactly what i am saying, people cannot claim they were mis sold PPI if they knew they had it and wanted or needed it - just having PPI alone does not mean it is mis sold.

Recently i came across a case where someone did not know they had PPI and discovered they had it on an old loan, he originally had £22k of debts and had already paid in contributions of £7500, the PPI refund came to just over £17k. He was half way through his IVA so he paid 100% of his debts back with IP fees.

He settled his IVA and debts in full in 2.5 years, client is happy as he gets out of his IVA and can get on with the rest of his life.

In a DMP he could have paid more than £2500 (IP fees) in interest on these debts.

Hi

Thank you again

Interesting

You appear to be making a fairly bold statement on the option of re-claiming PPI if I am reading this right that seems to be in direct contradiction to some of the other stuff I have read here and there.

The case study you quote sounds positive, however circumstances can be and are different as can comparing debt solutions.

I hope to come back to you later on this.

In the meantime the questions both answered and unanswered still stand and maybe others can join in and comment or have a dabble on what I would say at times can be a pretty contentious and serious subject area.

My take and hope this is helping people on the subject of IVAs & PPI claims (as I am quite sure that it is)

UpToMyNeckInIt

Very interesting thread on PPI: As critical as I am of my IVA firm, they were very good at advising me to claim any PPI before considering an IVA. (not that I ever knowingly took any out). Quite rightly, this should be 'standard practice'.

How the different scenarios here play out, just proves the point that it is down to each of us to properly research all avenues before deciding on which debt management solution is best for us.

Let's be honest though: The recent court cases against the banks etc. opened the floodgates. Many people probably were not mis-sold PPI - they took it out knowingly. Most are still claiming it back though now I bet.

Not sure if many IVA customers are given the 'option' of reclaiming PPI dependant on whether or not it was ‘mis-sold’: Numerous posts on this subject imply that IP's are 'making' customers claim, regardless. This has to be considered a realistic possibility, as there is a financial incentive in the way of the 15% cut received by the IP after all, not to mention the amount of money that partner companies such as EIC make (who some have claimed they are forced to use) - typically 39%.

Little wonder some customers find out about a PPI claim in an IVA, think: ‘oh great, that will settle my agreement’, only to find it does not, because over half of it is swallowed up in fees.

Saying that, equally there are some IVA customers who think that all they owe is their minimum dividend, forgetting that they are liable for all of their original debt throughout the IVA term.

Either way, you are going to be disappointed.

Just which (if any) of the above 2 scenarios apply to the OP is unclear, but some very useful posts here anyway.

Depth_Charge

UpToMyNeckInIt wrote: »

Very interesting thread on PPI: As critical as I am of my IVA firm, they were very good at advising me to claim any PPI before considering an IVA. (not that I ever knowingly took any out). Quite rightly, this should be 'standard practice'.

How the different scenarios here play out, just proves the point that it is down to each of us to properly research all avenues before deciding on which debt management solution is best for us.

Let's be honest though: The recent court cases against the banks etc. opened the floodgates. Many people probably were not mis-sold PPI - they took it out knowingly. Most are still claiming it back though now I bet.

Not sure if many IVA customers are given the 'option' of reclaiming PPI dependant on whether or not it was ‘mis-sold’: Numerous posts on this subject imply that IP's are 'making' customers claim, regardless. This has to be considered a realistic possibility, as there is a financial incentive in the way of the 15% cut received by the IP after all, not to mention the amount of money that partner companies such as EIC make (who some have claimed they are forced to use) - typically 39%.

Little wonder some customers find out about a PPI claim in an IVA, think: ‘oh great, that will settle my agreement’, only to find it does not, because over half of it is swallowed up in fees.

Saying that, equally there are some IVA customers who think that all they owe is their minimum dividend, forgetting that they are liable for all of their original debt throughout the IVA term.

Either way, you are going to be disappointed.

Just which (if any) of the above 2 scenarios apply to the OP is unclear, but some very useful posts here anyway.

Hi

I must give it to you, a very well thought out and perhaps a touch clever post, hitting all the right notes and points, nearly stole all my thunder too...nearly:)

Do you know, I seriously considered clicking the thanks button, that would have made two, but just stopped short on this occasion.

Anyone else?

My take

Find_The_Real

Some very interesting points from everyone and it does show how much of a difference there can be over how IVA companies treat PPI claims.

I have yet to go through the PPI process with my IVA so it will be interesting to see how mine is handled as although I have had PPI in the past, I do not feel I have been mis-sold most of it and the one that I know was mis-sold I have already claimed for and that has been made clear it would be off set against the arrears.

Like the whole IVA debate (which could possible do with a whole entire thread about that) it does seem the whole PPI issue depends on whom with and when the IVA was started.