Can a bank offset PPI after an IVA?

ladshead

I completed my IVA in February and a claim against HSBC (who were a creditor) was dismissed by the bank (HSBC) because of my IVA. I contacted the ombudsman who is investigating my claim and has asked me for a "letter of no further interest" from my IVA supervisor. I have provided the ombudsman with this as requested and I'm pretty sure they will find in my favour, otherwise why ask for this? Anyway, can the bank (HSBC) still offset the debt even though the IVA is completed and the IVA supervisor has washed their hands of me?

Foxy-Stoat_3

You don't normally get to keep the PPI refund as the IP classes the refund as a windfall. If the IP writes the letter then you could keep the PPI refund.

Have you spoken to your IP about this?

UpToMyNeckInIt

...It's an interesting one: My view is that once you have you Completion Cert. then any after-acquired asset such as PPI is yours to keep in full. (This is providing that your IVA company have not required you to reclaim PPI as part of your IVA).

Some IVA companies are also issuing CCs on the proviso that any PPI (and specifically only PPI), has to be subesquently handed over. This is a recent amendment to allow CC's to be issued, without any ongoing PPI investigations otherwise holding up the completion process.

Then there is the issue of the bank 'setting-off' any PPI against previous debt you had with them. HSBC are notoriously hostile towards IVA customers. Truth is, once they are in the IVA, they no longer have the right to 'set-off'. Whether or not they attempt to do so is of course another matter. This might be an issue for the Ombudsman to look into.

ladshead

The IVA is closed and the IP has given the ombudman a letter saying they have no further interest in my financial affairs. The debt was also sold to Max Recovery by HSBC and they told me that they will not accept any PPI. It either goes to me or the IP. So I can't see how HSBC can offset this. Help!

UpToMyNeckInIt

Ladshead,

OK then, based on your information:

1). Your former IP has issued a CC and declared no further interest in your financial affairs. So any PPI or other windfall is now yours to keep in full;

2). Your PPI dispute remains with HSBC. ('Max Recovery' merely buy 'bad' debts off various creditors, who just want them off their books); and

3). I have seen postings - from an IP, to this effect on other forums: Once a creditor is bound by an IVA agreement, they no longer have a legal right to 'set-off'.

In summary, if you believe you were mis-sold PPI by HSBC (or anyone else for that matter), you have the right to claim it, and keep it.

Good luck.