I completed my IVA in 2009 on the bases of the creditors accepting a lump sum as a full and final settlement. Recently I made a claim for PPI and the bank (RBS)offered me a figure of £2800 as a gesture of good will.
I accepted the offer but now RBS say they have paid into the 'outstanding' account. Basically not into my bank account.
It sounds as if RBS have set your claim off against their unpaid balance under the rules of set-off, which they may be entirely entitled to do depending on the terms of your loan agreement.
You may need to get a lawyer to check out the legality of this for you, but in the first instance ask the creditor under what authority they are relying on.
Many thanks Melanie I have asked them and await their reply.
I understand that as this IVA started before Feb 2008 it depends what it says in the terms and conditions and that I need to establish if I fall under an 'unrealised asset' clause? What wording should I look for?
If this proves to be the case can you advise how I should argue that the 'offset rule' does not apply?
Here we are talking about apples and pears effectively.
Set-off is a right given to a creditor if they can prove that the debt you owe them, and their requirement to compensate you for a mis-sold product are mutual. Opinion is divided on the legality of this - personally I don't think there is mutuality, but my barrister believes that there is - I wonder who will ultimately be proven right?!!
The issue of the asset provision determines whether cash generated from a mis-sellin claim belongs to the IVA or yourself. To determine this point, you firstly have to get over the set-off issue.
I am aware that this is a complex area for a lot of folks, but I hope I have explained this adequately for you - no doubt your former IP can talk to you in greater detail about the actual position.
Ok I took your advise and asked the question. The first response was, 'the payment process is currently under investigation and I am unble to provide you with any further details'.
Next I got this from RBS;
'The PPI Department process is to make payment to any open account in the customer's name and the decision as to what happens these funds is then made by the appropriate department. Hence the need to call our credit management Services Department on 08001510400 as previously advised.
I must point out that the acceptance form you signed regarding our offer of redress did include the following relevant para;
If I am subject to an IVA, any payment will be made to the relevant account I hold with you. Any disbursements due under the terms of the arrangement will then be managed by the Group's Insolvency Team.
First I have already provided a certificate to prove I am no longer subject to an IVA and secondly I had assumed that any account was closed as far back as 2009.
What should I do ? I am not happy having to deal with an Insolvency team again and feel I am being pushed in a certain direction.
Would it be best to ask the FSO for help at this point?
That is not correct - they are preferring themselves over your other creditors, and I think this gives you grounds to make a complaint to the Financial Ombudsman.
