My husband and I have a joint loan with First Direct and only myself am in an IVA. My husband arranged a payment scheme with First Direct for his portion of the loan 5 years ago when I started my IVA. DRSP sent us a letter from First Direct with an agreed sum for PPI from them and we duly signed and sent back. I rang DRSP and asked if they had paid the money over yet and asked also for the reference number so my husband could chase his share. He was told by First Direct that the money had been paid 4 weeks ago to Metropolitan which is a debt recovery service for HSBC/First Direct !! They also said we had signed to this affect which I checked with DRSP who confirmed that we most certainly hadn't. We had received no letter from First Direct to say this had happened and if we hadn't of it chased it we would have been unaware of it. I have spoken to Cleardebt who have said they will try and sort for me but how does my husband stand on getting his share back ?
It sounds like HSBC have offset the PPI against the remainder of the debt. They may have this right if the debt has not been cleared in full but Cleardebt should be able to hopefully sort this out.
I think they have but are they legally allowed to do this ? My husband ( not in an IVA) already has in place an agreement to repay his share of the loan to them which he did with them 5 years ago and has never defaulted Surely they cannot go back on this agreement without notifying him ?
Also my share should be shared with the rest of my debtors and they shouldn't just pay themselves back .
If your husband has cleared his liability to them he should get his share back so he should contact HSBC or the firm acting on your behalf. There is a debate as to the right of set off which hopefully Cleardebt can resolve on your behalf.
Thank you Michael . It appears that Metropolitan haven't even paid my share into the IVA and are just holding the money. Cleardebt will be on their case though
My husband signed the First direct letter accepting the payment that Cleardebt sent him but we didn't realise that there was a clause in there saying any outstanding monies to be paid to Metro.. Metro it turns out act for First Direct so why it wasn't on their own headed paper to flag this up seems unfair to me. Anyway just goes to show never trust what anyone tells you to sign and read it over and over again first !!!
My partner received his share of the PPI claim as the loan was in joint names but he was not in the IVA. So your husband should be entitled to his share. Hope Cleardebt can sort it for you.
Joint loan means each person are responsible for the whole debt not just a share - so if one persons enters an IVA, the other non IVA person is still responsible for all the debt minus the IVA payments.
Its not a straight 50/50 share, so you may find off set takes place
Last edited by ginger323232 on Wed Feb 19, 2014 6:33 pm, edited 1 time in total.
