How on earth can PPI claims be classed as a 'windfall'as far as i am concerned it was illegally taken or to be precice stolen off you by greedy banks, no different than if you get robbed by a burglar.
If you got robbed by a burglar and they stole £1000 and then some years later they recovererd the money, how the hell is that a 'windfall ITS YOUR OWN MONEY - a windfall is someone elses money a bookies or lottery etc,i dont know how IVA companies have got away with this.
Because it is an asset available to you in the IVA period. If you were not in an IVA you may use that money to clear debts so it's got to go to them.
Remember in most IVA's a large % of debts are wiped off so you can't really expect creditors to do that and let you keep any assets available during the IVA.
I agree with Kazza and it is nothing to do with the IP firms 'getting away with it'. We have a legal responsibility to creditors and any asset that is not specifically excluded from the IVA is included within the IVA. Failure to reclaim this money for creditors would be potentially negligent on our part and we could become personally liable for any loss to creditors.
It is an asset of the estate, rather than a windfall. Effectively, your debt is higher than it would have been had it not been there. This assumes, of course, that the PPI was mis-sold, and not all PPI was mis-sold, however that is another issue.
Very simply, if a debtor is owed money (in this case PPI) it is not unfair to assume that, when the money is repaid, he would have paid some or all of his debt off with it. Which is exactly the same as paying PPI redress into your IVA. You are blaming the wrong people here I'm afraid, if there wasn't an issue with PPI then I.P's would not have to deal with it.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
