Hi there
I am looking for some advice for my elderly parents who were in an IVA with Payplan. Due to my fathers ill health (he is 72) the creditors agreed for the remainder of the IVA to be written off. This was 23rd June. They have a letter stating it was agreed in full and final settlement and nothing else to pay. As of yet they have not received a completion certificate.
Barclays have written to them saying they made an error in their ppi claim of about 4 years ago and they want to give them an extra £7900 (previously a total of around £15k of ppi was paid to payplan with a small percentage to my parents). Unfortunalty Barclays paid this straight to Payplan. My parents spoke to payplan and they said it had to go to supervisor to see if they were entitled to anything. 3 weeks later and they have called my father to say they will be given £1700, the rest will go to the creditors. Payplan are saying that because a completion certificate has yet to be issued they money has to go to the creditors. I dont understand as they have a letter stating the agreement ceased in full and final settlement, so I am not sure what creditors Payplan refer to.
I feel desperatley for my parents, they tried their hardest to pay it back. They have not got a bean to rub together and feel its grossly unfair that all the money is not there.
Are payplan trying it on or can they do this. My parents are willing to fight if thats what it takes.
I would be grateful for any advice. Thank you for reading.
Also, i forgot to mention that Payplan have said if the offer is not accepted they will not send the completion certificate
As things stand at the moment, in law, the PPI refund belongs to your parents creditors and Payplan are being generous in allowing them to have any of it.
There is a court case ongoing ( appeal to be heard in November) which might change things ... but, if it does then IP's will simply not issue completion certificates until PPI has been dealt with.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I fully understand how you and your parents feel but as foggy explains it us currently the correct procedure. To be offered some of the money is a bonus and however little it is they should be grateful for it.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
If your parents did not sign a deed of assignment then they could argue their case as full and final settlement can mean just that. However the fact that the PPI relates to an error in a case already settled would weaken their argument in my opinion but I am not a lawyer.
I am not sure why they are being given £1700 but some firms do pass on the interest rebate from claims. If this is the case they need to ensure that any tax is accounted for as they will not want any nasty surprises in the next couple of years.
They could instruct a specialist solicitor to argue that the PPI is theirs as the offer was in full and final but this might be clutching at straws and will probably rack up costs that make it not cost effective in any event. I could put you in touch with a lawyer who would have a quick look at the paperwork and let you know if there is any merit in the claim.
I know its frustrating but the way to look at it is that they had debt to pay back and by taking out the IVA they only had to pay back what they could afford, rather than all of it, and they avoided Bankruptcy (and possibly kept their home as a result too).