PPI as full and final settlement ?

[Adam Davies]

Hi
Answered in another post.
It will be seen as a windfall unless it is paid directly against the secured loan.
Regards

[MelanieGiles]

It is still a windfall, whether it is paid off the secured loan or not. You need to seek direction from your IP at the time the refund is payable to see what they say.

[caraf]

Melanie
What would you advise be as a IP ?

[MelanieGiles]

I would have dealt with this issue prior to the IVA being proposed - however if it had not then I would seek direction from creditors as to how they felt the money ought to be treated.

[caraf]

Thanks Melanie
I did tell Clearstart at the time but they just ignored it, told me to forget about it because I could need to claim and then there was no money due. So this is what I did, until now when I just started to think about it again.
carol
x

[David Mond]

Different IP's have different intrepretations. In the main it is a windfall. But if a creditor is willing to pay up then you'll need to speak to your IP as to what should happen. Most creditors would offset it against what is due to them and hence reduce their debt in the IVA.
Interesting points of view which I will take up at the next IVA Protocol Standing Committee meeting in Novemer.

[MelanieGiles]

There is no debt in the IVA! This is a secured loan.

[Adam Davies]

Hi
So if the secured creditor offsets it against their debt then it won't be classed as a windfall ?
Regards

[MelanieGiles]

But it is not the secured creditor's choice Andy - it is the debtor's right to choose what happens with the money, which is a windfall! If they choose to offset it and reduce the secured loan, this does not alter the fact that they have received a windfall.

[David Mond]

The secured loan included the cost of the mis-sold PPI and hence it should be deducted from such secured loan and I would not treat it as a windfall. The sured loan is what it is and is not part oif the IVA. The reduction in such loan will leave you with extra monthly contribution to pay into your IVA. Discuss with your IP.