Thankyou for all your imput recently,but i still dont understand how claiming ppi on a iva is beneficial to the creditors its like robbing peter to pay paul....i dont benefit as nothing goes off my debt....the creditors dont benefit as you have taken money back off them to give them a small amout back so they actually lose out !!!! and in my case all the creditors had ppi so its not even one came off better, i would of understood this if the money had come from an outside source but not from the creditors themselves ....im sure put to them it would of been better for them to keep the ppi ......i just dont get it ....who benefits???
A lot of creditors have a pot of money set aside for ppi claims so in effect they are just juggling figures about,but effectively no one gains,except where someone is repaying a large portion of debt.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
If you claim PPI and you're in an IVA then it will either go towards the debt to the original creditor or be spread among your other creditor.
It will come off your debt, but not off your IVA as such. You will always owe the full amount to the creditors until the IVA is completed. Your creditors will get a better dividend.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I guess that the way to look at it Tracey, is that when you borrowed the money you intended to pay it all back I assume. Things changed for you which prevented you to be able to do this, and your creditors agreed that they would write off an element of your debt. This is a privilege which not all people are afforded, so do you think that it is fair that you receive a lump of money back from one creditor and then you get to keep it, whilst your other creditors still suffer the same right off?
If creditors have made mistakes by mis-selling PPI then they have to refund it - but the other creditors should be the ultimate beficiaries and not you. I am struggling to see why you feel that this is unfair. All creditors benefit from a PPI claim, because they receive a higher dividend than was originally anticipated.
At the end of the day, receiving compensation for PPI from one creditor which then goes towards increasing the return to all the creditors in your IVA would be a benefit for those who do not have to repay claims.
If you feel that you can claim PPI miss-selling from all of your creditors, then as you say at the end of the day if they all pay out and share the payouts it is really an academic exercise as in theory no one gains. However this is probably an unusual situation.
