PPI and expired IVA

Tonyh167

I had an IVA which where formerly settled and closed on completion of 5 years back in March 2016. Everybody was supposedly happy, I hadnt missed any payments etc so I started afresh, and hopefully will not get into that situation again.

BUT.....

Since then, I have had a letter from HSBC regarding a claim that I made on a personal loan insurance back in 2008 (ish). Originally it was dismissed but they seem to have had a change of heart so many years on. I gave them the details they required but then they said, 'oh, you have had an IVA inbetween'. Are they right that any payment I was/am due, would go to creditors involved in the IVA and not to me?

Would this also be the case should any claims for PPI be made? As part of the IVA, the company dealing with it supposedly contacted all lenders involved to discuss such payments, and although we were told that we would see a percentage (10% I think we were told), we never actually received anything.

Is it worth me having checks for PPI done? Does an IVA ever really close?

Hope someone can advise please.

-taff

They can send the money to the IVA if they want to. Yes, that will be the case for all potential PPI complaints.

Tonyh167

So an IVA is never really closed then??? You can get had over by your bank, that ends up forcing you into a dialema resulting in an IVA for 5 years, get receive notice that the IVA is closed but in fact anything you claim in the future, can in fact go to anyone else through the old IVA. For how much longer or is it continuous/open ended? Why bother telling me it's closed, if its not?

Nasqueron

Tonyh167 wrote: »

So an IVA is never really closed then??? You can get had over by your bank, that ends up forcing you into a dialema resulting in an IVA for 5 years, get receive notice that the IVA is closed but in fact anything you claim in the future, can in fact go to anyone else through the old IVA. For how much longer or is it continuous/open ended? Why bother telling me it's closed, if its not?

Things like IVA or DMP or bankruptcy allow you to draw a line in the sand and the firm agrees to not chase you for any more money but that doesn't mean you don't owe the money still on a bank record somewhere. In effect you are asking them to refund you money you never paid hence why they can pay a refund on the debts you never paid as is logical. Your situation is what it is, in simple terms you borrowed more than you could afford to pay back and that hit the bank profits so shareholders like say a pension fund didn't get as much money that year, all has knock on effects.

Tonyh167

Noted and duly accepted....... I think.

Part of the problem was the fact that yes I borrowed money in the form of a personal loan but when my employer chose not to renew/extend a number of employees long term contracts, I tried to claim on the loan insurance. The bank new and had written proof of my employment status when I took out the loan but claimed I was not covered when I needed to claim. That left me having to continue repayments, including insurance payments, whilst out of work. This had a knock on effect which led to bankruptcy or IVA. After IVA completed, bank decides that 'on review on past claims', one of which being mine, they were of the mind that the decision may not have been the right one at the time. I could reclaim. No point then if the very people that stitched me up before are just going to be paying themselves then.

Nasqueron

In essence yes, you probably were miss-sold but it's not to say it's not worth trying to complain, they may pay you some e.g. if they cleared your debt and there was an excess, they may no longer have a claim to the debt if it went to a debt collector so who knows, you may get lucky

-taff

If paying the loan was the sole reason you were in an IVA, I would make that complaint to them, that their failure to cover the loan even though you had the insurance resulted in the IVA. If it wasn't though, that you had other financial commitments that you couldn't make besides this loan, then I wouldn't.