Hello all
I’m new here, and there are a couple of topics that have caught my attention, specifically about PPI claims. For what it’s worth, here is my experience. Apologies if it’s been covered before elsewhere on this forum, but I hope it’s of some use.
I’ve been in an IVA for the last 12 months. My sole creditor is NatWest. I have no debts to anyone else (no credit cards, store cards, anything), and the reason I entered into an IVA was due to a personal loan I had with NatWest and the increasing difficulty of meeting the monthly repayments, what with a continuing pay freeze at work and the rising cost of living. Having previously been in the familiar cycle of one loan consolidating the last one and basically being beholden to the bank (not a great situation to be in), and despite having got into the habit of keeping strict records of all my financial transactions so I knew exactly where I was at any given time, the monthly repayments were becoming an increasing strain and I was keen to break out of that cycle. So, after lots of advice, careful thought and soul-searching, and knowing full well that the alternative was to once more go cap in hand to the bank (which I absolutely did not want to do again), I decided to apply for an IVA.
I was told that my application was quite easy to process, as having only one creditor and a distinct lack of credit/store cards, private loans etc made it much simpler. The IVA was agreed and it is by far the best financial move I have ever made.
Now, the PPI aspect. Just prior to going in to the IVA, I had lodged two PPI claims with NatWest. Obviously, my having an IVA changed the complexion of it, and I was aware that the lion’s share, if not the whole amount, would have to go towards the debt, and I was unlikely to see a penny of it. During the process of deciding whether or not to go for an IVA, the whole thing about “windfalls”, as well as any money earned outside my regular salary, was explained to me, so I assumed I wouldn’t see any of it.
Nonetheless, I contacted my IP (Freeman Jones, based in Manchester) to enquire as to what the procedure was. I was pleasantly surprised by what he told me.
Please read this bit carefully, as you may not be aware of what you’re entitled to.
My IP told me that, according to the regulations, I am entitled to retain, and I quote: “the first £500 of any after-acquired asset”. This regulation applies to each payment, rather than it being a cumulative figure. So in my case, it applied to both pending PPI payments. So the lion’s share of my PPI payment does indeed go back to NatWest (I like to think of it as me cleverly making my creditor pay off my debt to them by way of money they owed me anyway..!), but as one payment came in just below £500, I was entitled to keep it, and as the other payment was over £2,500, I was allowed to keep the first £500 of that.
That’s how it’s supposed to work. Whether or not this regulation is at the discretion of your IP, I don’t know. But it does exist, and if you haven’t been told about it, ask them. I guess it also depends on who your IP is – some may be more inclined towards reaping as much for your creditor as possible, whereas others may be more inclined to make sure the system works as much in your favour as they can manage. Fortunately, my IP falls into the latter category.
NatWest, or RBS, the parent company, to be more precise, have been pretty crap about it all though. My IP has had to crack the whip with them as they’ve cut corners and disregarded the IVA altogether when effectively making payments to themselves, when all payments should go through my IP. I’ve raised this with him and this will be discussed in detail during my six month review later this week. I’m not sure where I stand in terms of RBS having essentially not stuck to the terms and conditions of the IVA, but I’ll find out soon.
But the main thrust of my post is to point out (if it hasn’t been pointed out already by someone else) that in the event of a PPI claim, it is not the case that your creditors get 100% of it and you get nothing.
I hope this is of some help.
IVA? Best financial decision I ever made.