I am 2 years + into an iva, and am under a great deal of pressure from DFD to complete a ppi release for EIF. I have expressed my concern over there rates which would cost over 50%. I feel that there are using my situation to make high profits for themselves. Am I under any obligation to allow them to complete the ppi because of my IVA by DFD
Going off what others have written on the forum before I do not believe that your IP can dictate which firm you decide to use for your PPI reclaim, you can even do it yourself I did. However, you will probably find your IP will say they use a preferred company as they feel they have the knowledge and experience to do the job properly whereas you are a novice and cannot guarantee the banks will pay out..
You also have to be happy that you were actually sold PPI, just because you may have it does not mean it was miss sold. If you were happy that you were not miss sold then tell your IP that then they cannot make a claim on your behalf.
As you say the PPI claims company will make around 30% for their work and your IP will no doubt take 15% so they both do nicely out of it, however, this aside it does mean extra cash goes into your IVA pot for the benefit of your creditors..
Thanks you for your reply, I have heard that you can approach the creditors direct and ask that if any ppi is available that the creditor take all the refund off the debt owed. is that correct?
Yes, from what I have seen it is becoming more common for the creditor to agree to a PPI reclaim then just knock it off what you owe them. What you have to be careful of with that scenario is that if you instruct a PPi reclaim company to act on your behalf and a creditor agrees to pay you, say, £3,000 and knocks it off the debt so no money actually changes hands then the PPI claims company can come after you for their 30% fee (£900)..
If you do decide to contact your creditors direct - there are numerous sites with template letters to send to them - keep copies of all correspondence and send regular emails to your IP with updates as to what you have sent out, what replies you have received etc etc. Be prepared to get flack off the IP as if you do it yourself and the creditors knock it off the original debt then they do not get their 15% fee..
I'm with DFD and reclaimed PPI sucessfully on a loan. The creditor rewarded a payment to my IVA and knocked the rest ftom my debt with them. I agreed as it seemed a fair outcome. DFD however are now demanding I report them to the FO as they insist the creditor is not allowed to do this. Its a pain. Check and double check with your IP before accepting any offer.
The set-off of a PPI claim against a debt is not something one can request - the right of the creditor to do this either exists or it does not, and the terms of the original loan contract will probably confirm this.
