I wonder if anybody could shed some light on the 'statutory interest 8%' on an upheld PPI claim.
We have received confirmation of amounts due in respect of a successful PPI claim from RBS, there is a declaration and acceptance form that we need to sign and return, within the declaration it mentions a scenario if you are in an IVA which we are. It says "any payment will be made to the relevant account I hold with you. Any disbursements due under the terms of the arrangement will then be managed by the Group's Insolvency Team" I have no problem at all with the money being paid back to reduce the debt owed to RBS my query is the 8% statutory interest - who keeps this? Do RBS? IP? or ourselves, there doesn't seem to be any consistency when I have looked online.
The interest forms part of the refund and will go to the IP to distribute to creditors. Some IP's offered to allow the client to keep the interest element as a carrot for agreeing to revised terms and conditions. A couple offered the first £500 of any refund in return for co-operation, in the early days. Most take it all.
RBS are also well known for keeping the refund and offsetting it against their debt. There is doubt they they can legally do this and there is, I believe, at least one court case in the offing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
