If 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.
Jump to article content:
- Find out why claiming for PPI mis selling is possible after an IVA
- Understand how will the banks react to your claims
- Should you get help from a Claims Management Company?
- What are your options if you are still in your IVA? – Find out more below
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.
Hi. My IVA was paid off in March 2017 and my completion certificate was received. Do I have to pay them any further windfalls?
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.
Hi
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
David
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.
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
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.