complicated question you may be able to help with

[pm.e]

Hello,
Sorry to bother you, but I have a complicated question I think you may be able to help with. I hope you don’t mind.

Co-operative Bank and Mint have offered me refunds on my accounts but they won’t pay me by cheque as I have requested.

Co-operative Bank have said that all monies they will credit will have to be paid to my Insolvency Practitioner as I am in an IVA (All 100% of it)

I dont think or consider the refunds a windfall, and my question is can they do this? i.e. not send me a cheque and take it off my balances with them? If it took it to court via moneyclaim, would they have to pay me by cheque?

My other question is ref: IVA? How does the bank charge refund issue affect this?

Your help would be gratefully appreciated, and if you know of any standard template responses to this, this would be again extremely helpful.

Many thanks.

[MelanieGiles]

Hi pm e and welcome to the forum

The banks are quite correct, but I am suprised that they are prepared to refund the money to your IP rather than reducing their claims. If they are intend on providing you with a refund, this is definately a windfall under the terms of your IVA, and it is rightly payable to your IP for all creditors to benefit from.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[DebtDummy]

pm.e, I asked my former IP the same question and he informed me that the refunded bank charges would be paid into the IVA. All of it, not 50% of it.

I agree with you though. It's not a windfall like the lottery or an inheritance, but....there you have it.

All I have left is my humour.

[Skippy]

I don't know if I am reading this right pm.e, but are you paying 100p in the pound into your IVA? If so, would any refunds mean that the IVA could be shortened?

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[freelili]

Hi Skippy

No, The way I am reading is a 100 per cent of the credit refund goes into the IVA, under the windfall clause.

by the way Pme you are not bothering anyone ask away

LILY

[Skippy]

Thanks Lily, for some reason I couldn't get my head around it!

As Lily says pm.e you're not bothering anyone - that's what the forum is for x

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[neverending]

Hi
Just to clarify
If PM.E was proposing a 100% dividend then any windfall[reclaimed bank charges]would shortern the term of the IVA.If not it would just mean a higher dividend to the creditors
Regards

[pm.e]

Hi

Thanks for all of your replies.

My IVA is 29p in the pound.

If the refunds of charges is termed a windfall, then my dividend would increase?

I am still not sure that it is really a windfall?

Anyone have any thoughts on this?
thx.

[neverending]

Hi
My thoughts are that it will be classed as a windfall and that your dividend will increase.
Regards

[MelanieGiles]

Hi - If the bank's are intent upon refunding the money directly, rather than reducing their own claims (which I do find odd), then these payments can be nothing but windfalls.

A windfall is not just an inheritance or lottery win. A windfall is defined as any money or asset which you obtain whilst subject to your IVA, which was not known about at the time you entered into the agreement. You therefore have to offer up the whole lot to creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[pm.e]

Ok, thank you Melanie,