Claimimg PPI to pay IVA

peejaylew

A friend has an IVA on which all payments have been made and is in the process of being finalised. The operating company are requesting that he gives permission to a Solicitor of THEIR choosing for them to reclaim any PPI and use it to pay off creditors under the IVA, Fair enough BUT, can he not reclaim all PPI which may be due on the understanding that he uses ALL proceeds to repay the IVA up to the total amount. This way ALL proceeds would go to the creditors instead of only 70 to 75% with the Money Grabbing solicitors taking the balance, and probably sharing some with their mates in the IVA company ?

milliemonster

Yes he can, I am doing the same, our IVA is finished but we have to look into PPI reclaiming even though I know we didn't take any out, my Iva company wanted us to use their reclaiming arm but we refused saying we wanted to do it ourselves, the only stipulation they had on this was that we had to give them weekly updates.

You are not obliged to use a solicitor they state, unless that is written into the IVa contract he signed.

Nasqueron

The companies are probably aware that people who have completed IVAs and then claimed PPI back months or years later often end up with the money in full rather than it being used on their debts from the IVA (so effectively borrow money, don't pay it back and then claim the PPI back on top of that) - so probably trying to get it done before IVA finishes so they can get some extra cash