Some facts about PPI reclaims to try and tidy these posts up:-
1 Only the client will honestly be able to say whether a PPI policy was mis-sold to them.
2 Only when a client acknowledges that they have had a PPI policy mis-sold to them can an IP insist on a claim being made.
3 IPs cannot insist on claims being made - only the client can do this after acknowledging that they were mis-sold something in the first place.
4 IPs do have a duty to maximise realisations for the benefit of all creditors, and if this comes from genuine PPI claims then I applaud their efforts.
I will be so glad when the PPI claim runs out of steam - thankfully it won't go on forever!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Melanie, so basically he does not have to sign it, they cannot insist he does, and they cannot insist that the secured loan is claimed on purely because im married to him. I do see the point about raising "honest funds" to pay to the creditors, and also agree and applaud it if that was the case
Just a quick point (which I have mentioned on other threads on here over the last couple of days. A client may not realise they have been mis-sold PPI...see my quote from another thread below:
“A customer who has been sold PPI may feel that it was sold correctly, but without full knowledge of regulatory requirements how would they know. For example, the seller may not have fully informed the customer of all of the terms and conditions and eligibility criteria. In many cases a client may be aware of ownership of the PPI policy and be happy to pay the premiums, but only when a claim is submitted do they become aware of not qualifying for some or all of the benefits of the policy.”
"If the PPI seller has done everything above board there will be no claim, however if they have not performed to the standards set out by the Office of Fair Trading and the Financial Ombudsmen’s Service then they may have a claim to answer."
Msjax, on your point if there definitly is mis-sold PPI on a secured joint loan and only your husband is in the IVA, there is an asset of which your husbands share, 50% (assuming equal ownership) should be due into the IVA. I dont know in this scenario if you can be forced to claim it back though? Maybe Melanie can answer that one?
Gosh this is really going to be a hot subject for a while on the forum I feel.
I can honestly say that the phrase 'the debtor may not realise they were mis-sold PPI' makes me concerned. I can see a huge delay in finalising some IVA's. With mine, I knew it was mis-sold but needed the loan which is why I am reclaiming with a view to increaing my dividend to creditors.
However, many people take out PPI's knowing that they would not be able to claim for illness due to pre-existing conditions but are happy with that as their partner would be covered, they would be covered for unemployment or death.
If I were in the position of some of our fellow posters, and I did not think I was mis-sold PPI, I would be stressing the points made by Mel above and refusing to make a claim. This really could be seen as bordering on fraud and who wants that when you are just coming out of 5 years credit damage under the IVA. Be strong and resist buy of course if you have been mis-sold then conscience should lead you to make a claim to imrove funds available in the IVA pot.
I agree, Kazzafunk. If I thought I might have been mis-sold PPI I would happily claim it back to go into the IVA ... but not right on completion.
I would be starting the ball rolling now ( and do it myself, so the creditors get more ). I am concerned that the IP is possibly getting the usual "cut" for handling the claim, which I am told in some cases could be as much as 25%. So if you were awarded £1000, the net amount paid into the IVA would be £750. Of that, under the terms of the IVA, the IP gets the agreed 15%. So, from a £1000 award the IP will get £362.50 and the creditors £637.50. DIY, they get the whole £1k!
If I had completed with PPI outstanding I would simply let it go. As I have said before, the creditors will have written off a substantial amount already, without having to cough up a PPI claim too!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It is very scary what some posters are saying are happening to them and with my luck if it were me in that position, I'd probably win the lottery while my IP sorted out the PPI and have to pay loads over as part of the windfall clause! It just seems very unfair to me that you get almost to the end and then they shift the goalposts a bit. I wonder what they will think of that we will have to reclaim by the end of ours!!!
Hi Kazza, I think it would only be fraud if you knowingly claimed for mis-sold PPI when you knew it wasn’t. Unless you know all of the rules and regulations surrounding PPI and the FOS and OFT guidelines I don’t think even a reasonably knowledgeable person could know? Establishing whether you are entitled to a claim is a fair course of action in my view (and it is just a view)and if the PPI seller can show they acted correctly then there would be no claim.
Foggy, even if you did it yourself the IP would still receive a share of it as they are typically paid a percentage of what is paid into the IVA. Creditors can’t accept direct payments so it would have to be paid into the IVA to be distributed to creditors. You are right in that creditors would receive a greater share as there is no cut for the claims management company. I suppose the issue is do you want to do the claim yourself or instruct your IP to do it. Either way the money (or the majority of it) will go to the creditors.
P.S. I myself would not know whether PPI I had taken out was mis-sold as I do not know all of the rules and regs surrounding this issue.
I think I will have to agree to differ with you on this one Gareth. I am a small print reader before I sign anything and know exactly what I can claim for or not claim for on insurances I take out. Therefore if I did not think I had been mis-sold it would be fraud.
The only reason I am claiming mine back is bullying tactics by my fave bank HSBC and for them telling porkies pies about being able to cancel. I have been trying to claim this back since 2009 but due to the court case it was all on hold. I could have dropped the case when I went into the IVA (as suggested by the FInancial Ombudsman) but due to our low return thought they may as well carry on.
As long as this action is conducted at the beginning of someone's IVA and the IP does not force a claim when a client does not wish to I don't see a problem.
I don't think any of us will totally agree on this one. I don't agree with it, or at least if you do have to try and claim, it should be at the beginning, or part way through, the IVA - not the end.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
msjax has a very good point that I hadn't considered. Its odd that you would claim for mis sold PPI against the companies that you have agreed your IVA with. The only winner will be Equity Finance Co.
As for me, I am always careful what I sign up to, and cna definitly say that I was never mis sold PPI, so following what I have read here I am going to go back to DFD and inform them of this and see what they say.
PJA, a lot of the debts in an IVA are bought by other companies, and usually for a lot less than the debt value. These companies would be more than happy to get you to reclaim the PPI as they stand to gain a lot of money and none of the claims will be against them.
Obviously with such a hot topic there are a lot of opinions on this matter and it is understandable that there are differing views. One thing I would say is don’t be too swayed by people’s views on this forum (mine included). They are just opinions. If you are unsure about how to proceed take [independent] advice from an expert.
P.S. I have a new account; my previous postings on this thread were under the name buckles
Hi all
To give some perspective on this from our side, the recent admission by a number of large lenders that they will not defend proper claims of PPI mis-selling has created 2 issues for IPs of IVAs -
1. The IP must satisfy themselves that they only admit creditor claims at the appropriate amount. To the extent that they are inflated by inappropriate policies this requires challenge.
2. To the extent that reclaims of premiums and associated interest is available the IP should pursue these as an asset in the IVA.
Because it's a specialist area we are working with PPI expert claims companies to ensure we do this correctly and help our clients as best we can and of course, we are only interested in pursuing genuine claims.
There are various debates around PPI and whether it was mis-sold or not. The seller of a PPI policy needs to demonstrate that they followed the appropriate process to determine that the PPI policy was suitable and fit for purpose. For example and generally speaking they must have explained any limiting factors to making a claim, the full costs (and the effect of interest accumulation in the event that the policy cost was added to the loan). They must have made it clear that the PPI policy was a separate transaction and not have implied that it was a condition of the loan.
The evidence of thousands of claims supports the assumption that these processes were not routinely followed. The putting aside of billions of pounds by the big banks as provision for PPI claims further supports.
So, we recommend that our clients take the time to provide the information and allow the PPI experts to make their assessments.
I’m on annual leave all of next week but will be checking the forum and will respond to any queries on my return.
Hi all hope all is well, i thought it was until i too received one of these packages as i too am with DFD, my concern was that A)One of my credit cards was down as belonging to Co-op, i've never had a Co-op credit card and the number that was quoted actually belonged to the Halifax card i was once the sad owner of. B)Two store cards which i had with Captital CE group, had been brought out by Santander who i hold my current account with. Naturally i want to pay back as much as i can into my IVA and am hopefully on the homeward stretch but what i didn't want to happen was that because the bank where i hold my current account isn't aware of my IVA if this process started and they make the link, bingo a whole heap of worms have started. I have phoned DFD today who couldn't answer my question directly but did say that they didn't think it would affect my current account and so i had to then phone this other company who also didn't know the answer, they phoned me back some 2 hours later to say all was well that it would not have any impact on my account but i'm still troubled. I agree with many posters here that you don't sign something unless you agree with it. The fact that i don't have to send this back does please me somewhat as i do feel in all honesty that whatever i put my signature to i have agreed too but i will send it back, i won't see the money if indeed there is any and to be honest i'd rather worry about the here and now than something i have no control over.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
