Hi, I am currently 6 months into my IVA. During the initial set up stage with a debt mangement company in December, they advised i could reduce my overall debt by claiming aginst a miss sold PPI,by One of the credit card companies. I agreed to this and almost 10 months on i have recived written confirmation that they are willing to reimburse me several thousand pounds but written off aginst my credit card arrears due to the IVA. This i accept but here is the problem the company representing me will charge me 28% commission which is just short of a thousand pounds which i do not have,as my monthly expenditure is set to the penny With my IVA payments. I thought the sleepless nights were over but this is now worrying me again. Can any one advise of my next step. Thanks Del.
Hi and welcome to the forum, I don't know much about the ppi claims but was under the impression it was taken from any amount refunded to you? Might be worth checking x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
There is no way I would touch one of these companies with a ten foot barge pole!
If you are in the IVA then anything won from the claim will probably have to go towards your creditors.
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
No offence to anybody who has used an assist company for PPI reclaims ... but it's a bit like paying some one who happens to be walking past your house £100 for changing a lighbulb !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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
Paul - remind me never to invite you for a drink!!!
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
Anybody who thinks that it is worthwhile trying to reclaim missold PPI insurance whilst in an IVA should think again. The following article I noticed on a claims management website is quite clear about the pitfalls awaiting claimants who are in an IVA - and yes, I was also missold a hefty PPI premium on a large-ish personal loan, but I was not tempted to claim even now that my IVA is over.
The reason why Claims management companies will not do PPI Compensation Claims if your are in an IVA
Technically the answer to this is YES however there is a big BUT that you should know about.
When you enter into an IVA (Individual Voluntary Arrangement) you would have had to do an income and outgoings statement to see what your current disposable income is. The lenders will then agree to monthly payments over 5 years based on this disposable income. The lenders will then calculate how much of your debt would be repaid over this 5 year period and then wipe out the remainder of the debt (upto 75%) on the face of it this is great, you get debt free in 5 years and may only pay back 25% of the original debt.
The problem with this is that any income you recieve over and above your stated disposable income would be taken by the lenders. So if you get a full refund for your Payment Protection Insurance this will be taken up by your IVA agreement and you will not see any money.
Therefore most Claims management companies will take on customers who have an IVA as the customer will never see any money and would then be burdened with an Invoice from the Claims company that the customer would struggle to pay.
This is an unfortunate situation as the PPI may have been one of the causes that got the customer into financial difficulty as it would have made the Loan payments more expensive in the first place. We have spoken to many IVA companies about this situation and there is not a pratical solution at present.
The customer can always do the claim for a refund themselves and this would reduce their debt but most customers just don't have the stomach for another fight with lenders after going through the IVA process and never bother.
I would recommend the OP speaks to their IP. As the creditors are going to be benefitting, it may be possible to expense the cost of the claim to the iva. Good luck x
Hi del, are you saying that the same people that helped you set up the IVA went after the PPI claim? If so then they have "mis-sold" their services. They will be well aware that any returned PPI would go directly into the IVA and therefore aware that you wouldn't have the money to pay them.
Good point Leese ---- they would also be entitled to the 15% fee on payments into the IVA -- so looking to be paid twice ....... 28% charge to client plus 15% from IVA pot ....... 43% ... not a bad few minutes work !!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
