PPI as full and final settlement ?

[Casper]

Hi,
Long story short...
I have an IVA, & a secured loan. Loan has payment protection insurance with chance of a full refund after 5 years.
Asked DFD if i can offer the refund as a full and final payment (2 years to go on IVA). Amount offered is 1p in £ less than what they should be getting after the 5 years.
DebtFree said to put it all in wrighting, how much i''''m offering, proof of where the money is coming from etc.
DFD drag their feet getting an offer ready for the creditors, so have to request the refund as it''''s due.
I inform DFD that i''''m ready to make the offer and ask if they have the offer ready to sign. Again they ask for proof of how much and where from, so i send them a copy of the letter with the cheque attached.
The next thing i know is DFD have said the refund is a windfall and the want it all, The money will not be accepted as a full and final.
Where do i stand?
I''''f i''''d known they would want to take the money i''''d have said to the loan company to leave it in the loan. At least then i would have paid something off of it. As it is i''''ve been paying for 5 years and if DebtFree take the money then i havent even started paying the loan off yet.
Also DebtFree said how can i get the refund, the loan company should have paid the money into the loan knowing im in an IVA, The secured loan company didn''''t know im in an IVA (i think), should i tell them and return the cheque?

Any help will be great, I''''m hopping mad with DebtFree stringing me along letting me think i could be making an offer as a full and final and then say no we just want the money. Why didn''''t they say at the start that if i accept the refund then they would want it as a windfall. If they did then i would have left it where it was.

kind redards.

[Adam Davies]

Hi
That sounds a bit unfair.
The PPI was from the secured loan and not part of the IVA.You are obliged to surrender any windfall into your IVA but the question is that you requested this money on the understanding that it was to be used as a full and final.
Who was the cheque made out to ?

[MelanieGiles]

The following was posted by me in response to your earlier query about this sum. I am afraid that this sum is a windfall, it does not matter if it came as a result of the secured loan.

"I am afraid that I also believe that this is a windfall, but would have done from day one.

I assume that this is a First Plus loan and that you have not made a claim on the policy over the first five years. This was a perceived perk available to customers as an incentive to entice borrowers to that particular company, but in reality it is just a way of charging more interest for the remainder of the loan.

I do not think that you should ever have been misled that this money would not fall due into the IVA, and can understand your disappointment"

[Casper]

Hi,

Cheque was made out to me, DFD have said i can write a letter to them stating the facts. They said to ask in the letter if the money can be offset to first plus (the secured loan) what ever that means?
or ask if the creditors would accept the money as F&F. I would have to give proof that i have no equity, proof i would strugle to pay the monthly IVA contributions when i cut my work hours to school hrs.

If they insist on having the money as a windfall what are the chances of being able to keep part of it? My kitched roof (flat roof) could do with a re-felt.

I feel like ripping the cheque up and returning it to first plus.

regards,
Sue.

[MelanieGiles]

I think that you could negotiate keeping some of the money for home repairs - I would certainly view that favourably if I were your IP. It is such a shame the possibility of this windfall was not discussed with you prior to the IVA - I always do this with my own clients who have this type of loan. Perhaps DFD are not familiar with dealing with clients with First Plus loans?

[Casper]

Where would i stand if i return the money to first plus instead of giving it to DFD?

Today i will be informing my boss i wish to reduce my hours to school hours. This will mean we will not be able to keep up our normal payment to DFD, do you think this would help convince the creditors to accept the money as a F&F. I know we will most likely loose our home if they dont, but at the end of the day family must come first. My body clock is ticking ever louder and i really need another child, dont want my daughter being an only child.
If it means we have to loose the house and move into a rented house then so be it.

regards,
Sue.

[David Mond]

Write a personal letter to Derek Oakley at DFD expolaining:

1. You wanted to offer the bank refund as a full and final (and had previosly mentioned this to one of his administrators)
2. You have urgent house repairs
3. You are reducing your hours of work
4. You intend having another child.

Your offer (to within 1p) of what your IVA offered over its full term is fair and reasonably and if I was your Supervisor (IP) I would happily accept and put same to creditors.

Let me know how you get on. Good luck

[Casper]

Hi David,

Who is Derek Oakley?

Have you got an email address?

[Adam Davies]

Hi
He is an IP and you can get his email address at the Insolvency Services website
Regards

[Skippy]

Search on http://www.insolvency-service.co.uk/newipsearch.htm

[MelanieGiles]

Casper - I am sure that in an earlier post you mentioned that Derek Oakley was actually your IP? I assume from your query that you have never actually spoken to the gentleman himself?

[Casper]

Hi,

Well i've finally managed to talk to the guy who is drafting my F&F proposal.

Apparently the the other two guys i've been talking to this week are mistaken thinking the PPI refund money will be taken as a Windfall.

I've been told that as i applied for the F&F before the money was released to me it will be offered as payment for the F&F. If however, if i'd have had the refund first then they would have taken it as a windfall.

So i should be getting some paperwork to read and sign early next week. He also informed me the updated pence per pound total of the offer is the same as what the creditors would be due on completion of the full IVA term.

With the way things are at the moment, i hope they take the offer.... He said it has a good chance, the only down side is if they dont then the money will be taken as a windfall.

Oh well, at least i still have a chance of a F&F for now.

Oh yeah, my IP is Mr Redmond by the way.

Kind regards,
Sue.

[Lisa2009]

Good luck with the F&F offer, i hope they accept.
Mr Redmond was hubby's IP. He never got to speak to him in 3 years despite numerous emails. He did however recommend that hubby's creditors accepted his F&F offer, which in the end they did.

[MelanieGiles]

The money is a windfall - the fact that you applied for a F&F before knowing about this money bears no relevance to the fact that is an asset which should be made available to your creditors.

Clearly your IP does not agree with this, and as his interpretation works to your advantage, I am sure that you will not want to rock any boats. But don't be suprised if creditors do not agree with him either!

[caraf]

Hi
I have got this same PPI in which I am due a refund (if not claimed against)in June 2011 of approx 19,200.00. Do I pay this off my secured loan or should I claim the refund and pay it into my IVA ??