{"id":11263,"date":"2011-03-22T16:24:16","date_gmt":"2011-03-22T16:24:16","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=11263"},"modified":"2019-08-08T16:28:01","modified_gmt":"2019-08-08T15:28:01","slug":"ppi-in-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/ppi-in-an-iva\/","title":{"rendered":"PPI in an IVA"},"content":{"rendered":"\n

Many successful claims have been made against creditors in relation to Payment Protection Insurance (PPI), where the borrower has been miss-sold a PPI policy and many such borrowers have received compensation from the offending creditors. In the context of a borrower entering into an Individual Voluntary Arrangement (IVA) where one or more lenders provided PPI in the past, the debtor may make a claim for compensation against any creditor who miss-sold such a policy.<\/p>\n\n\n\n\n\n\n\n

Should the borrower have a PPI compensation claim in place prior to \nentering into an IVA, any compensation paid while the IVA is up and \nrunning will be treated as a windfall and any monies received have to be\n paid into the IVA for the benefit of creditors, although the terms and \nconditions of the IVA proposal may allow for the creditor who is paying \nthe compensation, to offset the payment against any debt due to that \ncreditor. Any surplus left over would have to be paid into the IVA for \nthe benefit of the other creditors.<\/p>\n\n\n\n

\"Payment<\/figure>\n\n\n\n

If the debtor makes the claim for PPI compensation after the IVA has \ncommenced, any compensation paid would be treated in a similar manner. \nIt is entirely the decision of the debtor whether to make any such claim\n during the life of the IVA. Indeed the debtor could defer making the \nclaim until the IVA was completed, at which time the debtor could retain\n any award without being obliged to pay any creditors, since all debts \nwould be written off at that stage. However, the debtor would have to \nconsider the possibility that the right to make a claim could lapse, due\n to the Statute of Limitations.<\/p>\n\n\n\n

The treatment of PPI compensation claims, based on miss-selling of \nthe policies, gives rise to considerable debate, as to whether all \ncreditors are treated equally and fairly when the monies from a \nsuccessful claim are distributed. To allow the \u2018miss-selling\u2019 creditor \nto offset the compensation against the debt before treating the \navailable balance as a windfall for the benefit of all creditors seems \nto be the standard approach and the least unfair practice. On the other \nhand, the supervisor of the IVA stands to gain by encouraging the debtor\n to pursue the PPI compensation claim, where the supervisor\u2019s fees are \nbased on realisations in the IVA. The decision to proceed with the claim\n rests with the debtor and it would not be surprising if a debtor in \nthis situation resisted such encouragement (to pursue the claim) until \nthe IVA had run its course in the expectation of being able to retain \nthe full amount of compensation paid, when creditors would have lost all\n rights to a share in the proceeds.       <\/p>\n","protected":false},"excerpt":{"rendered":"

Should the borrower have a PPI compensation claim in place prior to entering into an IVA, any compensation paid while the IVA is up and running will be treated as a windfall and any monies received have to be paid into the IVA for the benefit of creditors.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-11263","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=11263"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11263\/revisions"}],"predecessor-version":[{"id":11273,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11263\/revisions\/11273"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=11263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=11263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=11263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}