I took out an IVA in 2009, which ended early with a third party settlement settlement in 2013.
During the IVA, my IP did PPI reclaim search with a 3rd party company and added on 360 quid for this to the IVA, the outcome was nothing worth pursuing. I thought nothing more of the matter.
Out of the blue, this Sept I was contacted by RBS who said they thought I was missold a PPI on a loan that I had, I paid 3 years before the IVA, then it got included (last 1 year of payments).
So after 2 months and many forms and calls, they wrote to me Friday saying they agreed to pay me 1100 due to misselling. I thought ok that's cool as out of the blue...then under the payment section in letter it said " As you are currently in an IVA and your finances are being managed by a IP, we have paid them directly."
I thought that is a bit strange. So called them up and got put through to a call center in Philippians..they said to fax over my document to show that I was no longer in an IVA...but couldn't really help me. They said it may be escalated but the money, a cheque, was sent out on 12th,. Now they did this BEFORE they wrote to me as I only received the letter on 14th from them. It also says in letter if i am not happy with the amount they are paying to get in contact in next 28 days.
i find this whole thing very odd. Completely out of the blue, and even after my IP assured me that no PPI claim would happen in IVA now they pay out only to pay the IP directly.
Am I due any money from this? Am I due no money from this? Am I due all the money from this?
Hi Jimi --- I am afraid there is no black and white answer to this and it will rest on how your IP wants to deal with it. In theory any money, even after the IVA has concluded should be paid into the IVA. However, the IP must make a business judgement as to whether it is economically viable to reopen the IVA files and to distribute the sum, pro-rata, to your creditors.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for your reply Foggy. So shall I contact the IP or try and contact RBS again to sort this out, as they implied they may, through escalation, re-issue the money if they received my certificate of completion in good time.
Also when you say is it economically viable for the IP to reopen the IVA, what exactly do you mean? Does it cost the IP money and are they obligated to give me at least the interest? What about the 360 quid the IP charged me for the original PPI claim search that I got charged for and was fruitless? If they do not reopen the IVA (this also sounds worrying to me - can they ask for more payments?) would they even reissue the money to me or just keep it themselves?...who does the money belong to?
This is so strange as it was unexpected in the first place.
First when I say "re-open the IVA" I do not mean make it live again -- merely access the files to distribute the monies to your creditors.
It will cost the IP money -- to find the file , get it out of the "basement", contact all the creditors and divvy up the money -- then account for it to you and the creditors as well as account to HMRC for tax due on interest ( the interest element is taxable as income). A lot of work for 15%.
They are not obligated to give you the interest unless you signed any agreement to that effect. Such agreement would have given them absolute right to the money.
The money, if the IP chooses to deal with it, belongs to your creditors ( after deduction of fees and costs).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
