PPI after IVA

[busytrev]

Hi everyone I would like to take this opportunity to say what a fantastic website this is and thank the posters for all the sound and friendly advice.. :cool2: :cool2:

I could do with some advice on PPI claims. Does anyone know if you are still entitled to claim if you entered into an IVA which is now finished? All the original debt was consolidated into the IVA which was then settled in full after only 4 months.

[Bill-K]

Re: PPI after IVA

Hi Trev. I have helped some PPI claimants who had IVA's - technically 'Trust Deeds,' which are the Scottish equivalent. With an IVA, the creditors each agree to accept a reduced amount, and this is based on an agreement that you make with the administrator to repay a fixed amount each month over a fixed period of time (usually 3 years). Upon settlement of the IVA, the creditors thenrelinquish any further claim, and you then become completely discharged from the debt - as agreed.

But that does not discharge the creditors from their legal responsibility to have dealt with you fairly and reasonably in the first place, and if they have mis-sold an insurance product - whether it was attached to any of the IVA-related debts or not - then they are still liable for that. Indeed, it could be argued that - if they hadn't mis-sold the PPI in the first place - then the IVA may not have been necessary.

There is nothing to stop you from making a PPI claim, but you may need to be ready for them to make it as difficult as possible for you to pursue it, as they have already accepted a reduced amount in settlement of the debt. The mis-sold PPI was paid for by charging it to that debt, but the fact that the debt has now been settled by a mutually agreed arrangement (the IVA) does not absolve the lender from their responsibility to have dealt with you fairly from the outset. The PPI premiums were paid by you to the insurance provider/underwriter with the aid of the lender, who not only mis-sold you the PPI, but charged it to your loan account. They have settled the account with you by mutual consent - but you have NOT been refunded the mis-sold PPI - so you should be able to reclaim it.

And if they play 'hard-ball' with you - then you might like to remind them that the FOS take a dim view of this, and will be likely to award further compensation for undue distress.

[busytrev]

Re: PPI after IVA

Hi Bill,
Thanks for taking the time to reply and thanks for the advice. I just need to decide now whether to do it myself or get one of the rip-off companies to do it on my behalf..