Hi all, Have heard from a friend who is also in IVA, he has been through the ppi process, and a refund has been sent to his IP, who have in turn told him that he is entitled to a refund of "the statutory interest" which totals £677.00, I have also been through the process but have as yet heard nothing from my IP. Is everybody in an IVA entitled to this refund?
You can lead a horse to water, But a pencil must be led!
The PPI repayment contains interest which is deemed a taxable income. We reimburse 40% of the interest to avoid leaving the client with a tax bill but you need to check with your own IP as to what they do.
The 40% of the interest goes back to you and the 60% remains in the pot for distribution to creditors. If you are a higher rate taxpayer you will get extra to cover this but this is not that common. I hope this makes sense.
I doubt very much if you will see a single penny of it. We were with mc Cambridge Duffy & every single penny went into the iva. In fact the last time I phoned them, which was about a month ago they were still holding onto over £5k - something to do with offset creditors amounts.
I did ask them to send me notification as & when any additional payments are sent to the creditors but as yet it's been silent.
IVA COMPLETED & CLEAN CREDIT FILE.
An old bible proverb says this: the rich one rules the poor, and the borrower is a slave to the lender.
Hair Bobbles
We can only rebate money where interest has been paid on the PPI reclaim. This is not always the case and sorry if you have not been happy with our service. I am glad to see that you received your completion statement less than four months after your last payment which I believe is better than most and rest assured we will deal with all the money as quickly as we dealt with your IVA.
I apologise again if you feel we have let you down and by all means contact me directly if there is anything else you need.
I am assuming interest has been paid along with ppi claim as on the final report to the creditors under the heading of:
" supervisors abstract of receipts & payments"
Receipts
Debtors contributions
Bank interest net of tax
Financial irregularity claim
FI claim interest-
I'm assuming the FI claim interest is the statutory interest that seems to to be the the hot topic. & if it isn't,,,
What's the difference between "FI claim interest & statutory interest?
I have no complaint with how quickly the cc happened we were threatened with non compliance if we didn't sign & return the ppi forms to equity & finance so it was in our best interests to comply.
I do appreciate that at the end of the day we got into debt x& by means of the iva we have done our best to pay back what we can.if we had gone bankrupt the creditors wouldn't have got anything....But I do feel it's a little unfair that some are getting to keep ppi & others are not.
IVA COMPLETED & CLEAN CREDIT FILE.
An old bible proverb says this: the rich one rules the poor, and the borrower is a slave to the lender.
Hi Bobbles -- yes, it does seem unfair when some of us are treated differently. Unfortunately thgis is down to the PPI shambles being a new scenario to the industry and, there being no precedents through the courts, IP's are interpreting things differently, through no fault of their own.
Believe me, they are as irritated by all of this as we are !
Although this might not apply to all and is my own view and based upon my own circumstances, I feel that PPI should simply have been dealt with by legislation voiding any PPI claim for those in formal insolvency solutions.
I have saved tens of thousands in interest I have not had to pay and in actual debt written off --- the £8k PPI paid in is peanuts in comparison and, frankly, not worth all of the angst and ire this is causing all sides.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
