Hi everyone, please excuse me if this question has already been covered as there are so many search results for PPI it would take too long to go through.
When we had cards and loans, we only took out PPI if we thought we would be better protected based on the loan amount.
We were never pressured into taking out PPI, if we wanted it, we took it and likewise didn't if unnecessary.
We received a pack from our IVA company to claim back PPI to which we stated that we didn't need to claim. We have no problems in signing away any future claims to PPI as we want the IVA to complete on time. This is due to the amount of people who are still waiting for their cert of completion after nearly a year due to ongoing claims.
We have now received a letter from our IP, saying they are making a claim on our behalf. Is this acceptable if neither of us feel we weren't mis-sold?
Our chosen company have been very good and we have no quibbles with them over any other issues, but is it right to claim this money back from companies who are in fact creditors, or are we missing something here?
I do understand how you feel on this issue but my advice would be to comply with your IP request so that there is no delay in completing your IVA.
Some people have swore blind that they never had any PPI only to find that they have several thousand pounds due back from mis-sold policies
The easiest way is to complete the paperwork honestly and leave it to the agents to pursue any claims. While you may have always been aware of what you were covered for and do not believe you were missold, it is possible that you were mislead and even lied to by the banks which would mean they have to reimburse the IVA.
The money may even come from old cleared debts where the creditor is not even listed in the IVA. However, their bad practices may have cost you a lot of money and even contributed towards your financial problems and ultimately the IVAs.
It is an important point that Michael, had the banks greed not got the better of them then the whole scenario that people in IVA's are facing now would simply not exist.
The IP's are left picking up the pieces, with either implied or indeed explicit direct criticism for doing so, in response to a situation that is entirely not of the IP's making. People are fed up with the whole issue and frustrated with delays, and I am sure we all understand that, but the IP's are doing a job for the benefit of the estate that simply has to be done.
It is far too simplistic to adopt a "bash the banks" outlook, but it is a legitimate question to ask why the issue has arisen, and to bear that in mind if and when it applies to you.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi Beans .. I am one of those Andy is referring to. My company found £7000 worth of PPI from a loan that had been consolidated from way back when and PPI on the first loan had been rolled into successive loans !
Even if you did take PPI willingly, there is still the chance it was mis-sold ( for instance if you didn't really need it, or, as has happened, it was taken in good faith and, in actual fact, had you made a claim it would have been refused --- pre-existing medical conditions is a good cause for this).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
In reply to both Michael and Size 5. I cannot help but say then surely if ppi reclaim or as the case may be paying it in the first place may have exacerbated some financial difficulties then those people affected shud be compensated! Being in an IVA is very difficult and unfortunately the fact that an IVA is on file may prevent future credit or mortgage applications! The dividend returned to creditors unfortunately does not make a difference once you have an IVA on your record!!
Muggins -- you make a very good point there. Whilst I understand the position whereby the IP has to ensure the best return to the creditors, it is the creditors reaping all of the benefits when it was there actions that have exacerbated the situation in the first place!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Having thought long and hard on the subject of whether PPI may or not have been part of the reason I ended up in an IVA I've looked back in time at myself and come to the conclusion that if PPI had never existed all that would have happened is that I could have taken on even more debt (as i would have been judged to be able to afford it) and instead of finding myself unable to pay £50K back 6 years ago it would just have been £70K instead.
Being honest with myself I would have ended up bankrupt no matter what so I don't really care about PPI reclaims. It didn't happen in my IVA, but if an IP asks just sign the paperwork, let them do there job and if your dividend increases so be it.
You have one single goal in an IVA, a completion certificate. Don't become part of the excuse as to why it is being delayed is my view.
Last edited by herbekj on Tue Oct 23, 2012 5:46 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
This, also, is true Herbekj .... there is no harm in trying. To be honest, my stance on the PPI was, if there were any to be had ( which, as it turns out, there is) I was going to let sleeping dogs lie post IVA and draw a line under the whole sorry affair.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I understand what you are saying Herbekj but as foggy says the creditors and IP's reap the rewards of this mis selling! In the meantime whilst debts are written off the debtor still has an IVA on record! I certainly was led to believe when taking out an IVA that mortgages would not be a problem! I even had a mortgage co associated with the IVA firm phoning us to arrange a mortgage on a new property if we decided to sell!
My view is that any PPI reclaim I could have achieved would be dwarfed by the amount I have had written off with interest frozen, add 5 years of interest on the £50K that I didn't pay, I've had my compensation so to speak and as Foggy says I just want to move on and forget the whole sorry affair as well.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
Sorry but I do not feel sorry for the banks! As a taxpayer I have contributed to their bail out! Also paying minimum payment for many years meant the interest paid was more than I prob care to think about!
Experts - Why did this situation not occur with the miss selling of endowments, so lesson learnt or maybe it didn't happen and if not why not?
I'm not going to winge the wrongs or right off PPI. It appears the banks are digging their heels in, with over 1000 cases being referred to the FOS for investigation every day. So the banks know it'll be sometime before a payout
A poster heretoday was told of a lead time of 18 months by the FOS. It’s only fair the IP's put a warning on PPI claim packs about delays and damage to your mental health
How about any IVA that runs beyond 6 years for each month it does, the I/P company has to return 1/60th of their fee each month until it's closed. A sort of consequential damages You see that’s what a builder gets hit with if he’s late in completing a building, so I see no reason why it cannot be applied to the IP failing to complete the IVA on time 50% to the creditors and 50% to the client, each and every month - hey gets my vote, whaaadaya think?
My point to be serious I do have an issue with any IVA that run’s beyond 6 years. To my mind there could be a case to be called that IVA have been miss sold – The debt is written off, all the money returned to the client, we really have suffered enough at six years.
And I’m not having a pop at IVA's as a great debt solution, it is for many, no doubt, but six years, like statute, end of, no exceptions no excuses!
A court decided that banks were wrong and PPI could be reclaimed and by default that meant indirectly every person in an IVA. IPA or whatever potentially had a windfall.
It's unfair to blame IPs for this problem, they are having to deal with it because they are under the same court order as the IVAer is to return the maximum achievable in an IVA if some windfall becomes apparent.
Last edited by herbekj on Tue Oct 23, 2012 7:38 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
