The question of PPI claims for people in IVAs is something which we have been asked about a lot recently. New developments in this matter have led to a change in our policies for handling this. These changes have been outlined below.
We would like to take this opportunity to inform you of important matters that affect your IVA following the judicial review into the mis-selling of Payment Protection Insurance (PPI) and how this is likely to affect you.
Following the recent decision by UK banks to abandon their court case into the mis-selling of PPI, it has been established that any claim arising is compensatory in nature and as such must form part of the IVA estate for the benefit of your creditors.
Your IVA Supervisor has a duty to investigate whether or not a potential claim exists and he will be writing to all debtors within IVAs in due course to advise exactly what they need to do and how this will affect each individual case.
Needless to say, it is imperative that your Supervisor is informed of any PPI claims:
Failure to notify your Supervisor about any of the above could have severe consequences including the potential failure of your IVA.
If you are currently making a claim against your creditors, have already made a claim for mis-sold PPI or have been informed by your creditors that you may have a claim then you should inform your case worker immediately, who will inform you what, if any, further action you need to take.
If you have yet to investigate the possibility of PPI Claims then please wait receipt of the letter from your Supervisor which will be forthcoming.
The purpose of an IVA is not to write off as much of your debt as possible; it is to ensure that you pay back as much as you can afford to do whilst ensuring you are able to cover all of your regular household bills and to have a good standard of living.
If your circumstances improve by way of the realisation of an asset such as compensation for mis-sold PPI or through a large pay rise or the injection of an unexpected windfall it is only right that the additional amount is paid to your creditors.
The full scale of Payment Protection mis-selling has only recently been established and banks themselves have only recently decided to abandon their appeal into the original ruling that they must pay compensation for mis-sold PPI policies.
Within your IVA proposal it is stated that if you come into more money then you should pay more - this not only covers potential windfalls such as inheritances or lottery wins but asset realisations such as equity from a property, the sale of shares or compensation for mis-sold PPI.
You should contact your case administrator immediately.
If this comes to light at a later date then the consequences could be severe but if you notify your administrator now then we can advise you what, if any, action you need to take.
ClearDebt will be able to take an assignment of any unsettled claims which will avoid any unnecessary delays. Further information regarding what is an assignment and how we will deal with same is available here.