Mis-sold mortgage claim and my IVA

[beverley824]

Hi I really need some advise I started a mis sold mortgage claim 18months ago in joint names with my husband last month I went into a IVA just for my own debt ,my mid sold mortgage claim has now been passed to a solicitor On a no win no fee basis I don’t actually know if I will even receive any compensation should I tell my IS company about the claim or wait until I see if I am due any compensation ,if I do receive any compensation the company who were pursuing the claim on my behalf plus the solicitor will need to take their payment from the compensation ,I am worried that they will take the whole amount into the IVA and I will be left with a big bill to pay to the company and the solicitor I always said if I received any compensation I would pay off my debts or as much as I could anyway so I would put whatever was left after paying the company and the solicitor into the Iva ,also the compensation will be in joint names as the mortgage is in joint names the IVA is solely mine all the debts wereMine not my husbands , would the IVA company let my husband keep his share of the compensation I really don’t know what to do as there is no guarantee that I will even receive any compensation ,do I need to tell the IP now or wait to see what happens ,I’m just asking because I had a credit card debt with Santander which went into the IVA I received a letter to say they owed me a PPI payment which had been pursued by another company on my behalf what has now happened is Santander have paid the PPI straight to the IVA company and now I have to pay bill to the other company for pursuing the mis sold PPI claim ,all this started long before I went into the IVA and I had actually forgotten about it until the letter came ,could the same thing happen with the mis sold mortgage claim because if they pay it straight to the IVA company I wouldn’t be able to pay the solicitor or the company pursuing it I really don’t know what to do any advise you could give me thanks Beverley

[Foggy]

The mis-sold mortgage claim will be treated in the same way as the PPI claims. We usually advise against pursuing such claims off of your own back, via a claims company. Although many IPs will pay the claims company fees from the refund, some will not and this, as you know, can leave you with the bill for fees ! If an IP refused to cover the fees, however, I would take a complaint to their regulatory body as this is wholley unfair.

On the PPI claim already dealt with --- did you ask your IP to cover the fees ? If so, what was their response ? Depending on the reply yo those questions ---- I would appraise the IP and seek his written agreement to cover the fees payable from any refund. If he refuses tell him and the solicitor acting that the claim will not then proceed and the IP can explain to the creditors why he has not fullfilled his duty to maximise returns on the debt.

With regard both PPI and mortgage claims, your creditors are only entitled to your share (usually half). So if the PPI was on a joint loan the IP would only get half the refund (and pay half the fee, of course).

[Beverley1001]

Hi I asked about a mid sold mortgage claim the claim was started around 18 months ago and I only started an IVA last month should I have told the IP about the on going mid sold mortgage claim they never asked and I never thought to tell them should I tell them now right away or wait until I see if the claim is successful I might not get any compensation anyway thank you Beverley

[Foggy]

Hi I asked about a mid sold mortgage claim the claim was started around 18 months ago and I only started an IVA last month should I have told the IP about the on going mid sold mortgage claim they never asked and I never thought to tell them should I tell them now right away or wait until I see if the claim is successful I might not get any compensation anyway thank you Beverley

As you say, it might all blow over with no compensation due at all. But,on the other hand, if there is a payment to be had you need to know that the IP will bear the fees from said payment, rather than 'pocketting' the lot and leaving you with a bill ! An indication f how the IP might react lies in the way they treated that PPI claim you mention and the answers to the questions I posed. At the momennt the mortgage claim is a 'non-event' and, as you say, might come to nothing, so you have done nothing amiss in not mentioning it at this stage --- from the IVAs point of view.