Did you have a PPI refund that went to your IVA?

Did you have a PPI refund that went to your IVA?                                        

If you have had a Payment Protection Insurance (PPI) refund in the past, and that payment went to your IVA administrator to disperse (meaning that you did not in fact receive anything) then you can potentially now look at recovering this.

There has been a change to the way that PPI compensation payments to IVA specialists are made and, retrospectively, there is a good opportunity to look at addressing those payments that have been made to them in the past.

What is PPI? 

Payment Protection Insurance (PPI) refunds which were made in the past were as a result of mis-sales from the Banks.  There has been an argument that as this was compensation, you should not have lost out and the payment should not have gone to an IVA specialist to disperse.

Bankruptcy is slightly different because legally, any claim that you had on someone prior to your bankruptcy rests with the Trustee in Bankruptcy meaning payments to the Trustee in Bankruptcy would still stand.

However, with IVA arrangements, if you have paid in the past – there is potential for recovering this money.  The law is changing at the moment.  Currently we do not know exactly what those details are as there is an ongoing legal case which is due to complete at some point in 2017 and will provide a final decision on this area.

What are the legal changes that are resulting in refunds being made direct to consumers, rather than IVA specialists? 

The likely changes will mean that PPI payments received are likely to be the right and responsibility of the individuals making a claim – not of the Insolvency Service. Up until now, they have been taking the monies and receiving them from the lenders and dispersing them amongst the creditors of the client.

This is different from bankruptcy and is not to be confused.

It is also different from debt recovery companies who just manage payments back to creditors on your behalf (where you already would have received full reimbursement direct from whichever lender) unless you of course owed that lender money.

The Insolvency Service is in a considerable amount of turmoil over this, as they may potentially have to reimburse clients who have paid money to them and refunds have been received from various lenders.

The exact details are not yet known, but if you have had a PPI payment in the past from a lender that went to an Insolvency Practitioner on your behalf, that you now consider making a claim to recover this money direct for your own benefit.

Can I get the money back from the Insolvency Service? 

It is not guaranteed at the moment that you will be able to recover your money direct from the Insolvency Service, or indeed from the lender who made the payment to the Insolvency Service in the first place.

The legal ruling is currently being established, but we are warning our clients and anyone else out there who has had a PPI refund in the past that has gone direct to their Insolvency Practitioner that there is a good chance recompense can be achieved and you could receive the full refund which you were due in the first place.

What can we do? 

As a firm, we are established, with our Principal having been involved with banking disputes for almost 20 years.

We enjoy and welcome any challenge to obtain a refund for our clients where it has been mis-sold.  We have always argued against PPI refunds having to be paid to Insolvency Practitioners because whilst there are legal requirements for insolvency practitioners, it is not a bankruptcy and they are effectively just legalised debt collectors.

The potential change in legal rules means that we now have the opportunity, all on a no win no fee basis, to represent our clients and to obtain a refund in relation to the PPI, whether it is from the lender, the Insolvency Practitioner or whoever else the payment was made to in the past.

Martin Knipe