Can you claim PPI after you have completed your IVA or Trust Deed?
I have been told many times that going through an IVA or Trust Deed is a very emotional and stressful time and how relieved most of you are to have completed and put it behind you. You can now get back on with being in control of your life. Even though you would never want to go through this process again, many find that they have learnt a valuable financial lesson having gone through insolvency.
Moving forward and getting your finances back on track is a liberating experience and part of that is finding out if you can claim back any mis-sold PPI. Seeing as the additional cost of PPI would have contributed to your financial problems, its worthwhile checking if you are entitled to a refund.
Difficulties regarding claiming PPI after IVA
Claiming PPI after you have completed your insolvency may be more complicated than those that have not been through what you have, but it is still possible. You can make claims both against the debts that were included in your IVA and against debts which were paid in full before it started. This is true even if you completed your IVA some years ago.
The terms and conditions of your IVA along with any variations will state what happens with PPI after completion. If the terms and conditions are not clear, you may want to discuss your options with your Insolvency Practitioner. From our experience, we are aware that some Insolvency Practitioners will state that the PPI must be sent to them for distribution even though they are not entitled to it. Always request documented proof that they are entitled to take your money Banks will often contact your Insolvency Practitioner without your permission to confirm where the refund should be sent. If the refund is sent to your Insolvency Practitioner, it is worthwhile contacting them and requesting it be returned to you.
There are currently two court cases, one in England and the other in Scotland that may help to clarify what happens to PPI after completion. Both these cases are waiting Appeals which should hopefully be heard soon.
The other difficulty that you can sometimes face is that your bank will state that they are entitled to retain your PPI refund to offset your debt that was part of your IVA. You may believe that your debt was ‘written off’ because it was included in your IVA, however, this is not actually correct. Your debt is not written off but instead a legal agreement has been reached with your lender that means they cannot come after you for repayment of the debt. The debt however may still appear on their records.
Should I process it myself?
There is no reason why you can’t process your PPI claim yourself, however if you are looking to use a Claims Management Company then you will need to find one that has experience in processing claims for people who have been through insolvency. By using a company that does not understand the consequence of PPI and insolvency, you may still be charged a fee if your PPI refund is sent to your Insolvency Practitioner for distribution to your creditors or kept by the bank to offset your debt. You need to make sure that if either of these things happen, you will not be out of pocket.