PPI claim after my IVA

[Stecast]

I finished my IVA in March and have received my certificate of completion so i decided to try a ppi claim on one of my loans.

Received a letter yesterday saying that i was going to be awarded xx amount of money but directly under this it says as i have defaulted on my loan this money will be deducted from my outstanding balance.

I was under the impression that now my IVA is finished with the certificate of completion i have no outstanding debit with them, after looking in to this i found this in another forum'

''If you win your claim then the money is yours, the company may say they are taking it to offset any debt owed to them but as they have been paid from your IVA they have no debt to offset it against. If you get a letter from them saying they are going to offset the debt then write back to them saying you don't accept this as there is no debt to offset against, and to reconsider their decision. Give them 14 days to reconsider and if they don't pay up inform them that you will take matters further.''

Now i was wondering is this the best plan of action and I'm right in thinking i no longer owe the company any money.
Has anybody been in a similar position to me and managed to keep the money.

Thanks in advance for any advice that anybody can give me.

[Foggy]

Hello and welcome. Whilst it is true that there is no longer a debt and, I believe, the creditor cannot use a compnesation claim to offset monies previously owed, they will be within their rights to pay the compensation direct to your former IP to distribute to all your creditors as part of the old IVA.

This is a scenario which has yet to be tested, but has taken place in recent times.

[MelanieGiles]

The issue of creditors offsetting reclaims against their debts is an interesting one which is subject to much investigation by the legal profession at present. I have a meeting with Counsel set for Friday to seek my own advice, but as the PPI monies you are claiming were probably an asset in your concluded IVA, then there many need to be some adjustment to the distributions in the IVA.

I would discuss this with your own IP who may have also sought independent legal advice on this matter.

[Stecast]

Thanks for your advice everybody,
I have done a bit of research in to this matter and you are right in that it seems a very grey area as to weather you have the right to the money or not.
I have read in some cases people managing to keep there ppi money after a IVA and some people not being allowed to keep it.
One lady in the same situation to me just phoned the bank up and was told to fax them the certificate of completion and within 7 days she had the PPI money paid in to her bank account.

Thanks Melanie, i think the best plan of action for me is to phone my IP and get advice from them before i take it any further.

[allancsn]

I think there are a couple of grey areas around further claims on creditors for PPI and bank charges within an IVA.

I have no intention of claiming and it did not stop me completing my IVA but I do understand where creditors might be coming from when they want to offset.

My creditors had to write off over 60% of the money I had owed them (and even though I have no idea how,I did spend the money - what on I ask looking round ) and they also received no interest for 5 years.

But if some had had to pay PPI or bank charges then they as creditors would have ended up with less than nothing. Perhaps even paying off some of my other creditors LOL.

I can understand why they want it looked at.

[Stecast]

I understand your point Alan,
I put a claim in for PPI after one of my frends did and got a large amount of money back, not really thinking about my IVA as to me it was now in the past i decided to try it myself not expecting to get anywhere with it i got quiet a good offer sent to me then it hit me about my IVA.

When IVA's were introduced they was no such thing as PPI claims but now they are so popular and same with IVA's this needs looking in to and a set law brought in to place so everybody finishing there IVA knows were they stand if trying to claim PPI.

Just now it seems very hit and miss in that some people manage to get a successful claim and some don't.

[Foggy]

Like you, allanscn, I had no intention of claiming PPI. Actually I thought I didn't have any ! But thought, if I did, I was still well ahead with written off debt and 5 years saved interest. I wanted to draw a line under the whole thing.

However, as I have posted elsewhere, my firm decided to check and, indeed, have, so far, discovered around £7k from ancient loans that were rolled over into current ones. So, although it started as PPI, the premium, included in the original loan balance was also rolled into subsequent loans, no longer as PPI as I refused it.

[Shining]

I've thought a lot about ppi over the past month or so as I know my IP is contacting me shortly with a view to claiming. To the best of my knowledge I've never had PPI, however, I'll sign and they can try and if they get any a bonus as I really didn't sign up to any.

I just want the IVA over and done with and want to move on.

[Lucy lou]

To PP or not to PP that is the question ?

As the IVA is a legal agreement then it should follow that all PPI claims are dealt with in the same manner If 1 person is allowed and another is not then there needs a set ruling

As I wrote the simplest way is to not pay any PPI to people in an IVA
Set a start year for example Janaury 2011 then any IVA that starts from the 1st January 2011 then no claim can be made and then everybody is clear.

Or split the PPI 50 50 with the IVA and the person in the IVA
Then the person can either keep the money for themselves and helps them out during the IVA or the PPI money that they are allowed is only to be used for monthly payments

Example if they receive £2000 as their share then that amount is used to cover monthly payments until it runs out So the IVA person is helped out and the money claimed is still going to the banks etc

[Foggy]

I agree, Lucy, there does need to be a consistant approach.

Personally I'd advocate the "once in an IVA all bets are off approach". Onve a loan is in an IVA it is frozen at that point, nothing is added and nothing removed, apart from IVA dividends. At the end of the IVA it is closed for good. Surely it is fait to say, at that stage that, in the same way as the creditor cannot suddenly re-appear with claims, then nor should the debtor.

[Willow82]

Hi,

I have recently finished my IVA, June of this year and am thinking reclaaiming PPI on my IVA and other lenders - please could you give me some advice on how to go about this and also as the IVA took on my debt so to speak would I try and reclaim the PPI from them or from the lenders directly?

Kind regards,
Willow82[:)]

[Foggy]

Hi Willow. You will need to handle the claims yourself. But be aware that some creditors will simply hold on the the refund to offset their losses, some will want to pay it to your ex-IP for redistribution to the rest of the creditors.

If any pay it direct to you, there is a distinct possibility that your IP will be contacting you and asking for it back.

DO NOT use a claims company --- if the creditor offsets the money you will get none of it, yet be liable to pay a third to the claims company !!! Likewise for monies caught, one way or another, in the IVA.

The only glimmer of hope is that your IP might be one of those (rare breed) who allows you to keep whatever the creditors pay to you .... however, they have been known to change their minds and the rules seem to be changing daily !!!

[TheArtist]

Foggy, just to be clear - If somebody, with completed IVA and certificates and IP case closed, applied for PPI themselves and the bank paid directly to the individual without involving their former IP, how can the IP chase after the money if they were not contacted by anybody. If you see what I mean

[orchid5]

I think where the 'grey' areas are is that of people being treated differently by IVA providers, some can keep the interest off the PPI, others cannot! There does need to be consistancy in all of this as it causing confusion and upset that need not be.

Foggy i agree totally with what you say regarding claims management companies but some of us weren't given that option, we were told use them or else and weren't told that we could in fact claim ourselves as long as the money went into the IVA pot.

I did infact claim on an old loan that i had, didn't use a claims management firm and you have read the rest, the disappointment i feel that my own supervisor didn't support me and asked the claims management firm to invoice them for their fee on this claim was appalling and i had to jump through hoops to prove they didn't have anything to do with it, even to the point where i told them then i'd sort advice from a police officer friend of mine, that stopped them!!!!

[Foggy]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by TheArtist

Foggy, just to be clear - If somebody, with completed IVA and certificates and IP case closed, applied for PPI themselves and the bank paid directly to the individual without involving their former IP, how can the IP chase after the money if they were not contacted by anybody. If you see what I mean

Yes, I do see what you mean. Hypothetically an ex IP who isn't informed by a creditor that a refund is being made isn't likely to go looking -- doubt they'd have the time or resources.