I have just spoken to my IP who says that Lloyds cannot do this, the insurance was mis sold (and they have admitted this) so they should pay that back to me, I would be allowed to keep some with the rest going to my IP to share among creditors. The loan I had with Lloyds TSB is included in the IVA and they agreed to the payments. Ifthey keep this they are getting money off me through something they admittedly mis sold.
That's good to hear that your IP will be getting them to handle the mis-selling appropriately.
Hi Michael, thanks for clarifying the figures. But I think you are wrong in respect to Lloyds not benefiting from their proposed way of dealing with this. Even the figures you have provided would of shown a material benefit to Lloyds. They can't include the fact that Lloyds may not be able to reclaim any policy it has paid for the insurance provided as they have mis-sold it. This is not because of the account holder and therefore is seperate to their financial affairs on the account.
Using the figures you have provided the will in effect of boosted their return for the debt from the agreed £5,000 to £6,210 (£4,210 + £2,000). You have to include the £2k benefit as this would ordinarily be paid out and they are retaining it for their own benefit.
Cheers
Andy
Last edited by GinSkipper on Thu Jun 25, 2009 7:54 am, edited 1 time in total.
Hi all, just an update on the PPI, I spoke to Lloyds TSB Customer Service today who insisted they have sent a cheque for £2781 to my IVA company. I e-mailed my IP (who is on holiday apparently) and asked if they had received the cheque. The reply came back to say tey hadn't yet received it - Lloyds say they sent it on 28th JULY, anyway, I have again been told that I can have a payment of £500 as it is being treated as a windfall, yet, when I work extra I have to give up 50% of any windfall, is this fair? I know I'm in a difficult position questioninmg my IP but if you don't ask............
I agree with Melanie. There seems to be a difference of opinion on windfalls. Windfalls in certain circumstances are ignored if less than £500 but anything over that and the whole amount is payable to creditors. It is not a question of keeping the first £500 it is more to do with the fact that it is not worth processing anything less than that amount.
