New legal advice has come forward that could help UK residents involved in Individual Voluntary Arrangements (IVA) to make claims against banks that mis-sold them Payment Protection Insurance (PPI).

In a nutshell, individuals who entered into an IVA scheme may be able to make a claim if any accounts in the IVA bundle were covered by a PPI. The key here is that the claimant must be able to prove that the PPI was mis-sold by the lender.

Maple Leaf Financial will review your Individual Voluntary Arrangement (IVA) and we will be happy to discuss your individual concerns and requirements : 0800 7747624

Claim PPI after IVA facts

According to an article published in the IVA Advice Forum, the following facts are revealed:

1. The IVA scheme does not in any way affect an individual’s right to make a claim for a mis-sold PPI.

2. Money paid out prior to the establishment of an IVA may be included in a claim.

3. Even if all the debts have already been paid off under the IVA terms, creditors may not offset any payment due.

What it all boils down to is that individuals may make a claim for a mis-sold PPI even after all debts have been paid off in the IVA scheme. It will also cover individuals who are in the process of paying down debts under IVA. Again, the key is that individuals must be able to prove that they were mis-sold PPI by lenders. If the bank agrees that the PPI was mis-sold, it’s likely that the individual will be given a repayment. This calculus will also work if the Financial Ombudsman Service (FOS) forces a lender to agree that a policy was mis-sold.

It gets a tad more complex. The claim for mis-selling may only be applied to PPI payments already made. In some cases, the PPI costs may have been plowed into account balances. In other instances, the PPI charges may not have been paid before entering into an IVA scheme. What’s being presented here is that it’s highly unlikely that a lender will agree to reimburse PPI fees that were never paid before the IVA scheme was signed onto by individuals.

What, then, is the consensus? The forum is advising that individuals who make claims for mis-selling prepare to dig in. It’s apparently quite common for a lender to shoot down a PPI claim that’s connected to an IVA. Lenders are looking for ways to duck out of paying more claims.

After the initial refusal by a lender to pay a claim, the forum advices affected individuals to ring up the FSO and let them run with the ball. The FSO will make a ruling for or against the claim.

A polite warning to the lender that the FSO option may be applied could soften up the lender. The bank may decide that paying the claim outright is a better course of action. The FSO bills lenders £850 for deciding each case.

Individuals can surf the Internet to find clear instructions and advice on how to file a claim.

IVA’s

IVAs are an alternative payment option that debtors may use to avoid a formal bankruptcy. The rules to establish an IVA are governed under the Insolvency Act 1986 and are specifically outlined under part VIII. Individuals using the IVA option enter contractual agreements with unsecured creditors to settle debts.


PPI in IVA Service

Having extensively researched legal arguments on Insolvency claims the company remains one of very few with the knowledge and insight to interpret the needs of Insolvency Practitioners and the ability to deliver financial recoveries on PPI with IVA’s – thus significantly increasing dividends to all participants of the IVA.

It is widely believed that claims within insolvency were pointless as the creditor would easily ‘set off’ any and all payments against the outstanding debt.

This argument has now been overcome resulting in PPI cases being settled in a routinely manner. Lenders are instructed to forward all settlements monies to the benefit of the IVA supervisor.

Maple leaf financial  maintains a fully regulated account in instances where monies are sent to us, or it is preferred to instruct lenders to make the payments there

READ MORE


Claiming PPI in IVA, Getting the Facts Right

Whether you have completed your IVA or you are still in your IVA, making a mis-sold PPI claim is still possible. However, there are differences between the two situations. In one situation, you will be able to keep the compensation you receive from a successful claim. In the other situation, this simply is not possible.

READ MORE


Can I make a PPI Claim when I am in IVA

Individuals who have been paying for Payment Protection Insurance for their loans or other debts may qualify for a mis-selling claim against a bank or the loan company. Recently, this issue has become controversial as banks try to minimise the number of people who file a claim. Nevertheless, there have been a lot of successful claims made already. With this, those who have an existing Individual Voluntary Arrangement don’t have to pay their creditors or any PPI provider.

READ MORE


 

Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim

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Tim Capper

Bringing you financial news and information in plain english for Maple Leaf Financial. My aim is to help readers understand these often complex financial instruments.