It is possible to claim for PPI after your IVA is finished. However any compensation received will normally be paid to your old IVA company.
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- Can you claim for PPI after an IVA?
- Is your IVA company obliged to give any of the compensation to you?
- What if you owe money to a claims company?
The deadline for claiming for PPI was 29th August 2019. If you did not make your claims before that date you are no longer eligible. No new PPI claims can now be submitted.
You can claim for PPI after an IVA?
Prior to March 2017 it was often possible to claim for PPI after your IVA was completed and keep any compensation paid. However that changed in March 17 after a ruling by the Court of Appeal on the case known as Green v Wright.
In the case, the Insolvency Practitioner argued that any PPI compensation paid after the completion of the Arrangement should still be paid to them. There were 3 court hearings in all and eventually the Court of Appeal agreed with the IP.
As a result of Green v Wright, before paying out any PPI compensation most banks will now check whether you have been in an IVA in the past. If they discover that you have, they will automatically forward any compensation due to your old IVA company.
There is no time limit on the effect of the Green v Wright ruling. It does not matter if your IVA was completed 10 years ago or more. Any PPI compensation now due will still be forwarded to your old IVA company.
Is your IVA Company obliged to give any of the PPI Compensation to you?
You may become aware that a bank has paid PPI compensation direct to your old IVA company. If so, it is worth calling them to find out whether any of these funds can be returned to you.
Many IVA companies will simply say you are not entitled to anything as per the Green v Wright case. However, some have decided that Green v Wright does not apply to their IVA’s and will still give you the money.
You may find that your old IVA company is prepared to return some of the compensation money to you. Some firms agree to return the interest element. It is always worth asking. The worst that will happen is they will say no.
What if you owe money to a claims company?
Prior to August 2019 it was common to use claims management companies to assist with PPI claims. If you used such a company it is possible that they will still send you their bill even if your compensation is paid to your old IVA company.
In this situation you should first suggest that they contact the IVA company and claim their fee from them. If they press the issue you should stand your ground.
Tell them that they should have asked you whether you were ever in an IVA before taking on your case. Had they done so they would have understood the risk that you would not be able to pay them in these circumstances. As such you should demand they waive their fee.
If a claims company refuses to waive their fee in these circumstances, you should threaten to raise a complaint with their regulator (the FCA – Financial Conduct Authority). They may well back down to avoid this escalation.