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, 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).
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.
Hi,
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.
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.
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?
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.