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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, there is a new claim going about at the moment about compensation to do with mortgages, not ppi, if an iva is closed, are they entitled to receive any monies received from this compensation

    1. Hi Debbie

      This is a good question. If we were discussing bankruptcy and not an IVA then the answer would be yes. Any compensation paid for mis-selling which happened prior to the date of the bankruptcy would be regarded as an “after acquired asset”. In other words because the opportunity for the compensation to be paid existed at the time of the bankruptcy, it must still be treated as an asset of the bankruptcy and handed over even though the payment is received after the bankruptcy is over.

      Whether the same rule can be applied to an IVA is debatable. It would ultimately depend on the terms of the IVA. If the terms included “all assets” of the individual then I believe the IP would have a claim on any compensation paid in the circumstances you describe. However if the terms just state “named assets” then they would probably not have a claim.

      The overall issue here is it is highly technical and probably something that lawyers in a court room would have to argue over……

  2. Sue says:

    Hi, I settled my IVA in Nov 2019 and received my completion certificate. However I have received a cheque today relating to PPI on my mortgage which I was unaware I had. Do I need to forward this onto the IVA company or is this mine to keep? Only £100

    1. Hi Sue

      Depending on the attitude of your IVA company any PPI received after you get your completion certificate should still be paid to them (after the Green v Wright case of 2017) . As such you should really contact them and ask. That said if you have received the cheque and it is only £100 I do not think they are going to be that interested. I would be pretty sure they would let you keep it.

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