Claiming for mis sold PPI after an IVA is possible. However whether you can keep any compensation due depends on the terms of your agreement.
- Can you claim for mis sold PPI after an IVA?
- How are the banks likely to react?
- Can you keep the Compensation due?
- Claiming against accounts not included in your IVA
Can you claim for Mis Sold PPI after an IVA?
There is nothing to stop you from making claims for mis sold PPI after your IVA is completed. This is after you have received a completion certificate from your Insolvency Practitioner (IP).
You should not start any claims yourself before you have your certificate. If you do any compensation paid is caught by the windfall clause of the agreement and would certainly have to be paid to your IVA company.
In certain cases even after your completion certificate is received PPI compensation subsequently paid will still have to go to your old IP. This is in accordance with the Green v Wright Appeal Court ruling in March 17.
Green v Wright confirmed that in cases concerning “All Asset” IVAs PPI paid after a completion certificate has been issued is payable to the Arrangement.
How are the Banks likely to react to any Claims you make?
If you make mis sold PPI claims after your IVA has finished the bank may simply send you a cheque for any compensation due. However they may be reluctant to pay it to you. There are two reasons for this:
The set off argument
The set off argument is based around the bank arguing that they can hold bank your compensation. They say they are allowed to use it to offset against the debt you did not repay them because you were in an IVA.
The unrealised assets argument
The unrealised asset argument states that although your IVA is completed any PPI compensation you get now must still be paid to your IP. The Green v Wright case has confirmed this for All Asset IVAs.
Can you keep the compensation due?
Before starting any PPI claims you should ask your old IVA company for a “letter of no interest” in any further PPI compensation you may be due. If they refuse it is likely they will still claim it under the Green v Wright ruling.
If you get a “letter of no interest” then you can proceed with making claims. If the bank refuses to pay out on the basis of set off you could complain to the Financial Ombudsman Service (FOS). However the process can take 12-18 months with no guarantee of success.
A specialist claims management company may be able to help you claim and overturn any bank set off argurments. However they will charge a fee payable from any compensation you receive.
IVA Information is not a Claims Management Company. We are unable to help you with your PPI claims. If you want help you need to use a claims company regulated by the Ministry of Justice.
Claiming for PPI against accounts Not Included in your IVA
You may have had debts which were not included in your IVA. Perhaps you had a loan with a bank which you paid off before it started or a secured debt such as a mortgage or car finance.
If you had PPI on any of these debts you might think that because they were not involved in the Arrangement you should now be able to claim against them and keep the compensation due. This however is not the case.
The fact that the opportunity to claim existed at the time you were in your IVA means any compensation paid now is still an unrealised asset of the Arrangement. As such it can be treated in exactly the same way as if the debt had been included.
Before claiming for PPI against debts not included in your IVA you should make sure you get a letter of no interest in the same way as if the debt had been included.