PP! & IVA

[killerkev]

My IVA finished last year (after 6 years) but right at the end a PPI claim was raised so the IVA cannot be closed down until this has been sorted out . I have now been informed by the claims company this could take up to 2 years!!.
My concern is in 12 months I retire and had intended to take 25% of 1 pension pot to pay off some of my mortgage.
But i have been informed if I do this the IVA will claim the money to make the payment up to 100% of the debt ( have paid 55p in the £)
Can the IVA do this ????
If I knew the 5 year IVA would take up to 8 years I would never have taken it out!

[footiemad]

This seems very wrong to me Kev. Which company are you with and are you speaking to your case worker or the IP? If the former, I would insist on speaking with your IP as it is not your fault that there could be such a long delay. If I were you and your company are insisting on taking your pension TFC then I would defer taking the pension until such time that your completion certificate is received.

[ivoriva]

Yes, technically this is true, until your CC is received you are still under the obligations of the IVA. However, this case demonstrates just how unfair all this fiasco is and I would fight it every step of the way if the situation arised.
One can only hope that, as several IVA providers have already put in place, that CCs can be sent out and PPI is investigated without the client still being under all the other obligations of their IVA. It would appear guidelines are being created to make this standard practice (judging by what I've read on here).

[killerkev]

Thanks for replies seems to be a problem that is becoming common!!!
I have no problem with paying what is due but it seems to me the rules keep changing & never in the debtors favour!
I never wanted to take out a PPI claim in the first place but was not given a choice.
I will have to push my provider a little more.
I have several pension pots most I can defer but this one is a very old policy and has guarantees built in so if I do not take the benefits when due I will lose a lot of money and the annuity will drop

[footiemad]

Kev - Can you not take the annuity and just defer the lump sum? Also have you checked with an IFA to see if the annuity rates may be even better than your guaranteed rate with another provider. As another thought, if the claims company are saying that the claim could take up to 2 yrs, why not claim yourself, it would be a whole lot quicker.

[killerkev]

This is a very old policy from the 1970's and cannot be deferred , the only option is to not take the cash sum ,but I was hoping to use this to pay the mortgage off then be debt free for the rest of my days !!!!
It will pay out a lot more than any policy on the market and pays out when I'm 60 all the other pensions pay out when 65 unless I take reduced sums.
I had planned everything years ago when I first took out the IVA so that I could pay as much as I could then clear the mortgage , but things seem to keep changing !!!

[footiemad]

Oh yes I remember those policies (sec 226A or something). In any event I really think that you have a strong case to get your IP to send your CC whilst applying for PPI at the same time. Good luck