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.
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.
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.
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?
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….
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.
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.