PPI After IVA - HFC Reclaim Success Sort of? Please Help!

peterg04 · 17 June 2012 at 12:32AM

Hi Tomboy unable to put link in so just type PPI and IVA in search forum and it will show in list

TomBoyNI · 17 June 2012 at 1:01AM

I must state again that this is not money that was written off. The value quoted is pre IVA and was paid by me prior to the IVA commencing. It is NOT anything that was written ofF when I went along the lines of an IVA.

I am wondering also if an IP can bankrupt someone to make an example of them. I can't see that being legal after an arrangement was successfully completed.

johnb0y · 17 June 2012 at 3:12AM

I am sorry, I completely disagree with Gimpsdad. The whole issue of IVA is indeed a grey area, and how banks and supervisors deal with you will all depend on you individual circumstance. If your IVA is fully completed, and your supervisor has not made a conscious decision to encourage you to apply for PPI mis selling then you are in a different situation to someone has yet to complete or has been asked to submit PPI reclaims during the repayment periods.

IVAs are indeed an alternative to BRs, they are NOT the same. While it is true that as a bankrupt the Insolvency Service has declared that PPI reclaims remain an asset. They have refused to do the same for IVAs. IVA's are a legal agreement between two parties, BR are not.

If you can genuinely proove that you have been mis sold PPI then the financial institution are required to give careful consideration to your complaint and compnesate you appropriately. If you have completed then you have nothing fro compensation to be offset against.

During your a persons IVA they bank is liekly to have sold the debt to offset losses. Additionally, a person in an IVA will be making repayments which banks have argued unsuccessfully they have not received as a consequence of selling on the debt. Unfortunately they took a chance and lost out.

Increasingly, its been shown in a number of instances, if PPI hadn;t have been in place, debt spirals may have not occured.

My final point is on the issue off PPI as an asset. I can understand why the Insolvency Service has said in BRs they money remains a live asset. The institute would not have agreed to the debt write down and are liekly to have received scraps form the person involved.

In IVA's very often repayments are larger (over 50% of outstanding money, but each one is different) and it is a joint agreement between you and the finance institute. PPI having been added to debts would have artificially inflated the debt due. For instance, in my circumstance, PPI payments accounted for over 30% of the total debt. It has been argued successfully that as such, the dividend repaid to the financial instution have been inflated by that amount.

The key element of a successful PPI reclaim is to return you to the original position you would have been in had PPI not have been mis sold to you. As such I have submitted 13 claims against various organisations, with advice from my IVA provider. 8 have settled properly with the odd hiccup. 5 have now been referred to the FOS for consideration. One is HFC.

Early discussions with FOS indicate that they will consider the claim, that is successful they will instruct to repay to me and not to the IVA supervisor who is very clear, that in my situation he could not redistribute as this would leave them then open to a challenge from me, and not a route that his practice is willing to leave themselves open to.

He is also clear however, that since 2009, all new IVAs would be expected to be paid to him and repaid, as PPI process is now in place. You have a choice of claiming or not claiming. If you do or don't its up to the individual. But the money is to be redistributed if you do.

So for Tom, stick to your guns mate. Refer this on. You may fulfill the criteria to get through the grey of IVA world and get to keep your dough from HFC. If though at any point you IVA supervisor during the period of your IVA has suggested to you that you make a claim, then the IVA provider may ask for the cash for redistribution.

TomBoyNI · 17 June 2012 at 3:22AM

Thanks for that detailed reply Johnb0y. My claim was done on my own with no input from my IVA IP. This was completed in 12/2010 and I did call my IP to ask and was basically told we re finished with you do work away, which I did.

Thanks again

peterg04 · 17 June 2012 at 10:39AM

Hi Johnb0y, enjoyed your comments, can you tell me when you forwarded to FOS have you had a case number and how long before you got it after your complaint, I have sent in a complaint against HFC, I posted it recorded which I know was signed for but its not on their system yet, also cheeky question, was by any chance one of you creditors who paid up RBS. we had a Nat West loan I have spoken to them and they have said if the account was paid via the IVA and completed they would pay us, total of £11000, would be nice to know this is true thanks regards Pete

Slinkyskills · 17 June 2012 at 12:35PM

Hello guys,

I've just registered on here today and was doing some searching for my question below however after reading this thread it seems I pretty much have my answer.

There are some very detailed, informative responses in here so I'd like to say thanks to those that have posted. I am in similar circumstances however I'll explain below.

I've recently made a complaint to MBNA about some PPI that I believe I was missold.

I have written to them with the evidence and they've wrote back advising they are investigating my complaint and will respond within 28 days. The problem I've got is this;

I've been in an IVA which I finished paying into in December last year. I haven't as of yet had all my paperwork through my Insolvency Practitioner as there is a problem with Revenue and customs. The Revenue and Customs have contacted my IP and other IP's advising that they shouldn't have been charging them tax on IVA's which means my IP are entitled to claim any tax back which in turn means that by law the tax owed has to be repaid to my three creditors.

My brother who is also in an IVA and is still in it now made a claim recently to Egg about a missold PPI and he was successful however they have written to him explaining that although he was successful the refund has to under his arrangement be repaid to his creditors which means he doesn't get a penny of the claim.

He is gutted as he was expecting a claim of around 3k so he's thinking about challenging it but tbh I don't think he has much of a chance of seeing that money.

I am now worried that MBNA are going to do the same with me as the IVA I was in has not yet been finalised as in I have not had all the completed paperwork through. Firstly this is no fault of my own as I should have had this paperwork months back and secondly I have finished paying back in December so realistically any potential refund if I'm eligible should be paid to me and not my creditors if this happens if I'm correct?

And finally as mentioned above by others if this PPI wasn't inserted in the first place which it was without my prior consent or knowledge then perhaps I wouldn't have been in this financial state in the first place this is my argument.

I'd like to stress no decision has been made yet as to whether I am due a refund so I am only speaking hypothetically at this present time so it's a case of what if really.

Can anyone advise me if they were to end up paying the money to my creditors am I by right entitled to claim this money or possibly challenge it in court?

Thanks.

TomBoyNI · 17 June 2012 at 12:48PM

From what I have read and have been told by the FOS the most important document seems to be the Certificate of Completion. I think the date that it ultimately shows will be the determining factor as to whether your IVA is considered closed. Although to be fair I am just presuming that on what I have learnt over the last few days. Hopefully someone more knowledgable will pop along soon.

johnb0y · 17 June 2012 at 2:04PM

TomBoyNI wrote: »

Thanks for that detailed reply Johnb0y. My claim was done on my own with no input from my IVA IP. This was completed in 12/2010 and I did call my IP to ask and was basically told we re finished with you do work away, which I did.

Thanks again

Good luck mate. I hope you come out trumps.

johnb0y · 17 June 2012 at 2:07PM

peterg04 wrote: »

Hi Johnb0y, enjoyed your comments, can you tell me when you forwarded to FOS have you had a case number and how long before you got it after your complaint, I have sent in a complaint against HFC, I posted it recorded which I know was signed for but its not on their system yet, also cheeky question, was by any chance one of you creditors who paid up RBS. we had a Nat West loan I have spoken to them and they have said if the account was paid via the IVA and completed they would pay us, total of £11000, would be nice to know this is true thanks regards Pete

I only submitted a couple of weeks ago. So not even had an acknowledgement yet. Not expecting to here anything for a another few weeks. I know they have received it all. I've not laid any claims against RBS.

johnb0y · 17 June 2012 at 2:17PM

Slinkyskills wrote: »

Hello guys,

I've been in an IVA which I finished paying into in December last year. I haven't as of yet had all my paperwork through my Insolvency Practitioner as there is a problem with Revenue and customs. The Revenue and Customs have contacted my IP and other IP's advising that they shouldn't have been charging them tax on IVA's which means my IP are entitled to claim any tax back which in turn means that by law the tax owed has to be repaid to my three creditors.

My brother who is also in an IVA and is still in it now made a claim recently to Egg about a missold PPI and he was successful however they have written to him explaining that although he was successful the refund has to under his arrangement be repaid to his creditors which means he doesn't get a penny of the claim.

He is gutted as he was expecting a claim of around 3k so he's thinking about challenging it but tbh I don't think he has much of a chance of seeing that money.

I am now worried that MBNA are going to do the same with me as the IVA I was in has not yet been finalised as in I have not had all the completed paperwork through. Firstly this is no fault of my own as I should have had this paperwork months back and secondly I have finished paying back in December so realistically any potential refund if I'm eligible should be paid to me and not my creditors if this happens if I'm correct?

And finally as mentioned above by others if this PPI wasn't inserted in the first place which it was without my prior consent or knowledge then perhaps I wouldn't have been in this financial state in the first place this is my argument.

I'd like to stress no decision has been made yet as to whether I am due a refund so I am only speaking hypothetically at this present time so it's a case of what if really.

Can anyone advise me if they were to end up paying the money to my creditors am I by right entitled to claim this money or possibly challenge it in court?

Thanks.

By the sounds of things your brother will have to have any potential reclaim sent to his supervisor for resdistribution to all creditors.

As for yourself. The key is having the completion certificate. As you don't then your supervisor will more than likely require you to have any potential claims redistributed. You are entitled to make the claims. But as explained, until the completion certificate is issued all monies must be sent to him. It would be highly unlikely that a court would be sympathetic.

PPI After IVA - HFC Reclaim Success Sort of? Please Help!

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