There are a lot of individuals out there who are scared with the mere thought of bankruptcy, and this is where an IVA comes in handy. IVA stands for International Voluntary Arrangement, and it is sort of an alternative for those people who don’t want to fall victim to bankruptcy.

Recently a lot of people have been asking a question that, can they claim Payment Protection Ins (PPI) after their IVA is finished? Well, if you are someone with the same question then you need to stick with us throughout this article because today, not only will we answer this question of yours, in fact, we will explain the whole science behind PPI too. So, people, take notes of what we are about to tell you because this article can actually be very useful for you in the long run.


Claiming For PPI

First of all, keep in mind that claiming PPI after IVA has finished is possible. Yes, you can definitely claim for PPI even after your IVA has finished. One can actually make claims against the debts that were included in his IVA arrangement. In fact, you can also make a claim on the accounts paid even before it started.


The Right Time To Start PPI Claims

Make sure that your IVA is completed before making any PPI claims. You might be wondering that how exactly will you know about the completion of IVA, well, when it’s the case, you are actually given a proper completion certificate that is signed by your very own Insolvency Practitioner. Know that it’s extremely important to wait for your completion certificate even if you have finished and paid all your monthly payments.

On the other hand, if you claim PPI before the completion of IVA then remember that any compensation that you are given, it must be treated as a windfall and according to the terms of the arrangement, you will have to hand it all, over to your IP.


How The Banks React To PPI Claims?

After the completion of your IVA, when you claim for PPI, the banks become hesitant to pay you the compensation you are rewarded. And well, there are two major reasons behind this reluctance;


1- Setting off:

There is this set off rule where the bank is allowed to hold your money back to pay a debt that you owe it. Basically, in this situation, the bank will argue that they can easily hold your compensation whenever they want just because of your unpaid debt.


2- The unrealized assets:

This argument stated by the bank is that even if your IVA has now completed, you could have claimed your PPI while it was still running. In this case, no matter what happens you still have to pay your IP the compensation that is paid to you.


Using A PPI Expert

Remember that once your IVA is completed, you can then always make a claim for PPI mis-selling yourself. But unfortunately, if your bank backs off at the end and refuses to pay you the compensation then yes, you might have to give up on your claim as there is nothing you can actually do about it. The only way out is to file a complaint with the FOS(Financial Ombudsman Service), but this process can take around 18 months to complete and that too with no guarantee of success in the end.

This is the main reason why you should always look for a specialist company or a PPI expert before making the claim. You will have to pay a specific fee to your agent or company, but that fee is only supposed to be paid if you get your compensation.

Published by Mohammad Shoaib