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Can I claim for PPI mis selling after my IVA has finished?
Money Advice, Debt Advice & Debt Help

Can I claim for PPI mis selling after my IVA has finished?

Claim for PPI mis selling after IVA finishedIf you have finished your Individual Voluntary Arrangement (IVA) it is possible to make claims for PPI mis selling. Even if your Arrangement finished some years ago you can now make PPI claims which could be worth £1000s.

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The deadline for claiming for PPI was 29th August 2019. If you did not make your claims before that date you are no longer eligible. No new PPI claims can now be submitted.

Are you allowed to claim for PPI Mis Selling after an IVA?

If your IVA has finished this means that any outstanding debt you owed to the banks has been written off. However this does not change the fact that you may have been mis sold PPI before your Arrangement started. As such you can now make a claim.

The mis selling of PPI is a separate issue to whether or not you only part paid back your debt. In the same way as if you had paid off your debt in full your claim must still be considered. Compensation must be paid if you were mis sold.

Before starting any claims you must have your Compeletion Certificate . Before then your Arrangement is not formally completed. Any compensation would still have to be paid to your IVA company.

Will Banks pay the PPI Mis Selling compensation you are due?

If you claim for mis sold PPI after you have been through an IVA it is highly likely that the banks you claim against will tell you that they do not have to pay you the compensation you are awarded. They will use two main arguments to prevent you from getting your money.

The Off-Set argument – Firstly the bank may say that the money should be kept by them to off-set the outstanding debt that they are still owed because you went through an IVA.

The unrealised Asset argument – Secondly they may argue that the compensation you are due is an unrealised asset (or an after acquired asset) of your Arrangement. As such they claim it should be paid directly to your old IVA company.

Should you get help from a Claims Management Company?

If you are dealing with your PPI claims yourself and the banks refuse to pay your compensation to you it is unlikely you will get your money.

You can escalate a complaint to the Financial Ombudsman. However if upheld they are still likely to say take the side of your Insolvency Practitioner.

For this reason if you are claiming after an IVA it is best to consider working with a claims management company. You will have to pay a fee for this. However you should not be charged unless you receive any compensation you are due.

You should use a specialist claims company who understands the implications of you having been in an IVA and who will not charge you unless any compensation due is actually paid you to.

What are your options for PPI Mis Selling if you are still in an IVA?

Any compensation paid to you while your IVA is still running is a windfall. As such it has to be paid into the Arrangement. Given this if possible it is best to delay making your claims until after it is finished.

Having said that your IVA company may require you to authorise them to make claims on your behalf. If this happens you cannot refuse. You are obliged to cooperate with them to ensure you maximise the amount you pay back to your creditors.

If you were asked to claim for PPI mis selling during your IVA you may still be due compensation that has not yet been paid.

If you believe your IVA company made claims on your behalf during the Arrangement it is still sensible to review your options after it is completed. It is possible that the claims were not investigated properly. In addition you can still make claims against debts that were not included such as debts paid before it started.

24 thoughts on “Can I claim for PPI mis selling after my IVA has finished?

  1. Debbie says:

    Hi. My IVA was paid off in March 2017 and my completion certificate was received. Do I have to pay them any further windfalls?

    1. Hi Debbie

      Given your IVA is completed and you have a completion certificate almost all windfalls you now receive are yours to keep. For example if you win the lottery you can keep the money. If someone dies and leaves you inheritance it will be yours. If you sell property such as your house or car all proceeds from the sale are yours to do with as you wish.

      That said there are a few instances where windfalls you now receive may still be payable to your old IVA company. This is where the reason for the windfall happened before or during your IVA. For example compensation for mis selling of PPI which happened before your IVA started may still have to be paid to your old IVA company.

  2. David says:

    I went bankrupt in 2000 and was discharged in 2006. I am now currently in an IVA , nearly 3 years into it. I have had a payout back dated from 1998, pre Bankruptcy of £2000. This payout related to one of the creditors within my bankruptcy.

    I have been informed that the amount has been sent direct to my official receivers? I’m trying to find out exactly where, as this payment was from 1998 and now my bankruptcy is over am I entitled to the payout? And surely can’t go to my current IVA if the account in question does not relate to any within the IVA?

    Please help anyone , hope this make sense,
    Many thank

    1. Hi David

      I can confirm that what has happened in your case is correct. The PPI compensation awarded to you must be paid to the Official Receiver even though your original bankruptcy is over. This is because if you are awarded PPI compensation on any debt you owed pre the date of going bankrupt it is still treated as an unrealised asset of your bankruptcy. As such the OR has a claim on it. There is no time limit to this. Unfortunately you are not entitled to this money.

  3. A ali says:

    Hi guys

    I went in to a IVA which was completed in 2011 and it has become evident that I was mis sold PPI. The bank have said they are sending this payment to the iva practitioner. Is this correct even after 8 years have passed since I completed?

    thanks in advance

    1. Hi A Ali

      I am afraid this is correct. It follows a court ruling regarding the payment of PPI mis selling compensation after an IVA called Green v Wright in 2017. In this case the Court of Appeal ruled that PPI compensation paid for debts that were paid off prior to the start of the IVA or included in it must be paid to the IVA company. There are no time limits.

      The only instance when you will be able to keep PPI compensation after an IVA is if it is paid for a debt taken AFTER the IVA was completed. Alternatively if the IVA company themselves chose to waive their right to the money. Some IVA companies do this and others do not. You should speak to your old IVA company. You never know you might be lucky and they might send you the money.

  4. Howard says:

    Hi, I had a full and final IVA settled and closed in April 2018. This ran from 2015. This last few months I have been pursuing a claim via a claims company and I now have a letter form RBS saying they will settle a claim on an old credit card between 1990 and 2015 offering me £6000.

    They have sent a settlement letter direct to me to settle saying ‘if I have been in an IVA (or bankruptcy etc) the settlement will be made to the relevant account’. Would you say this means they will put that into RBS accounts that were in the IVA? (Bank account, loan and credit cards).

    1. Hi Howard

      Normally RBS will withhold any PPI compensation due and use it to off set against old debts with them that were not paid in full. If you included their debt in your IVA then there will almost certainly be a balance they have recorded as outstanding.

      Given this I think it will be highly likely they will retain the £6000 to repay the balance they say is still owed to them. If they do there is nothing you can do about it I am afraid. As such I think there is very little chance you will see any of this money.

  5. H. Thompson says:


    I finished my IVA just over a year ago and have received the closing certificate confirming that my IVA is complete.

    My ex partner (un-be known to me) applied and was granted PPI compensation from a joint mortgage, which was paid off in full (no debt) 14 years ago. I received a letter from the mortgage (bank), stating I was due half of this amount as it was in joint names. I signed all the relevant documents and returned them to the bank. I have now received a letter from them saying they cannot pay me the money as I had an IVA.

    In order for them to re-consider, I need to send them a copy of the completion certificate and a letter from the IVA company, confirming that they have no financial hold over me. I have had many differing responses but the main response was, that the IVA company could re-open my case and take the money from me. I really want to know, if it is worth all the stress again.

    1. Hi There

      The Green v Wright ruling of March 17 which I have referred to in previous comments above made clear that PPI compensation paid after an IVA is completed still has to be paid to the IVA company unless they confirm it does not apply to their IVAs.

      The fact that your compensation relates to an old mortgage debt paid off prior to your IVA start date is irrelevant. The compensation still has to be treated as an asset of the IVA because the opportunity to make this PPI claim existed at the time you were in the Arrangement.

      That said to find out if you can get the money or not is really not very difficult. All you need to do is make a quick call to your old IVA company and ask them whether they require PPI compensation now paid to you to be handed to them or not. If they say yes then you have no hope of getting the money from the bank. If they say no, they will certainly confirm this in writing. You can then give the doc to the bank and they will release the money to you.

      By doing this you are not reopening your IVA in any way so there is no need to worry about that. I would say it is definitely worth making the call to your IVA company to at least find out where you stand. If you don’t want to do that please post the name of your IVA company hear and I will let you know what they are likely to say about it.

  6. Richard Archer says:

    In my IVA I made a legally agreed “full and final” settlement offer. At the time I had the IVA ppi miss-selling did not exist. The practitioner claims that it was an asset. My question is how can it be classed as an asset when I was not aware it existed?

    1. Hi Richard

      Based on the Green v Wright court ruling in March 17 your IVA company has the legal right to claim any PPI compensation awarded to you after your IVA is completed. It does not matter whether you knew about the option to claim for PPI at the time of your IVA or not. The rule stands because as you were mis sold, the opportunity to claim existed whether you know of it or not.

      Some IVA companies have said the Green v Wright ruling does not apply to their IVAs. As such they are happy for individuals to keep PPI compensation subsequently paid. However it does not sound as though you old IVA comapany is one of those. As such there is no way you will be able to get this money I am afraid.

  7. Tony Coleman says:

    My iva ended in 2012. The Green v Wright court ruling was in 2017 how does this affect my ppi claim? I agree that this is not the only contributing factor that I got into dept, but having companies taking money unlawfully from your account doesn’t help. Has anybody challenged the ruling as I would suggest it has not taken the unlawful act that contributed to people’s downfall.

    I also find it difficult to understand how a new law can be back dated and how this law only affect ppi . What happens if a heir hunter company contacts you about a deceased relative pre the IVA do they have a claim on this.

    1. Hi Tony

      I am afraid I cannot offer you any good news here. The Green v Wright case went through three different courts during 2016-17. In the first hearings at the lower courts I understand the individual (Mr Wright) actually won. It was not until the IP (Mr Green) appealed to the Court of Appeal in London that the case was decided for the IP.

      I am not a lawyer but it is my understand that once a case has been decided at the court of appeal then that is it. There can be no further challenge. As such it is now down to your IVA company to say whether they enforce the terms Green v Wright case or not. If they decide to do so and say they want to keep the funds there is basically nothing you can do about it. I do not think there is any lawyer in the land who will want to take up your case…..

      In terms of your final point this is difficult to answer. I would suggest that following the Green v Wright ruling the answer would be yes. However in this situation it would be highly unlikely that the heir hunter company would be aware of your IVA and so you would more than likely receive any money due to you.

  8. KEVIN SHARP says:

    Hi James,
    My IVA was completed in 2009 i successfully claimed back my ppi in 2016 before the ruling however 2 more redresses have contacted me saying there was more redresses owned to me and they were going directly to my IVA practitioner from back then, I have contacted my old IVA an they said they would send me back the calculated interest owed what does that mean?

    1. Hi Kevin

      From what you have said it sounds as though your old IVA company have decided to stick to the Green v Wright ruling and keep any further money due from PPI mis selling. Most of the time they simply keep the lot. However in some cases they decide to return the interest element to you.

      This is the interest you would have earned if the money you used to pay for the PPI premiums originally had been in your bank rather than used to pay the premiums. This amount is generally quite small so I would not hold me breath for much of a payment from your old IVA company….

  9. Malcolm Parry says:

    Hi. I was in an IVA scheme 17 years ago & was paying £450 monthly. A year later my wife & i decided to raise money from our bungalow to pay the IVA company a full & final settlement of £30,000.

    The creditors accepted this amount & we received a completion certificate in December 2004, stating that the IVA was now finished.

    I have now been told by RBS that I was mis-sold PPI & am due just over £800. can they stop this payment in light of the IVA all those years ago & in light of the creditors accepting the £30,000 full & final settlement.

    Thank you.

    1. Hi Malcolm

      The short answer is yes. Given the mis selling happened before the IVA started then any PPI compensation is an unrealised asset of the IVA. This is regardless of the timescales involved.

      As a result of the Green v Wright court case RBS are obliged to refer this compensation back to the IVA company. If the IVA company do not want it then I believe RBS have a policy of holding it back to off set against any portion of the debt they were not originally repaid through the IVA.

      Given this I think there is little or no hope of you seeing any of this compensation I am afraid.

  10. Marrie says:

    I applied for PPI on behalf of my late husband. If I am rewarded will this go to my IVA which was finished 2 years ago?

    1. Hi Marrie

      If your late husband was not in an IVA any PPI compensation awarded to him after his death will be paid to his estate. If you then receive all or part of the cash because you are the beneficiary of his estate, I believe it should then be treated as inheritance.

      However as inheritance this would only be payable into your IVA if your late husband died while the IVA was in place. If he died afterwards the inheritance is yours to keep.

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