Families face trouble being debt-free after payment protection insurance mis selling refunds come in late than expected.
Individual Voluntary Arrangements, a form of financial debt assistance service, is the usual method of many UK families looking to keep themselves debt-free. The service allows insolvency agencies, in the case of the Giddings, ClearDebt, to intervene between lenders and borrowers and create a plan to clear debt.
ClearDebt, in this matter, is tasked with resolving the issue by handling every financial income the borrower has. This includes any lotto winnings, inheritance and other payouts. The percentage will be shared to all lenders involved.
This includes PPI compensation.
The delays for Tony and Debbie Giddings had caused them to wait for longer to receive payouts from their PPI complaints, a responsibility that ClearDebt has before it could issue an IVA completion certificate.
Because of the delays in PPI refunds, the couple are still listed in the Government’s insolvency register, creating complications for their plans to re-mortgage their home. They had been paying only for interest in the last few years.
According to analysts, it isn’t just the Giddings but thousands of other UK families are suffering from the indirect consequences of the banking industry’s inefficiency to handle UK PPI refunds.