How does ppi work when in an IVA? Most of my debts have been on payday loans a such however one of them was not and ppi is going to be paid out. I am in an IVA with payplan and I only have 6 months to go before it finishes. I was originally told I would pay back 37% I am however going to be close to paying back 65% as I always have paid extra when I have earned over 10% of my wages. Payplan use a company called creedo claims to chase ppi and they will take 25% + VAT from the money paid by the clydesdale. I think this is unfair as for the past 3 years I have done the chasing with the clydesdale I had to go into my local branch several times to get myself certified so they had proof it was me since they wouldn't acknowledge I had anything to do with them. eventually I found a very old letter which had the account number of the loan on it so they couldn't argue any more. Clydesdale have said I am owed for the premiums which amounts to £1822.52 plus £1553.28 in interest making a grand total of £ 2973.80. I was told when I phoned payplan that I would probably get the 8% interest but the person I spoke to sounded new so I wasn't sure if she new all the facts. If she is correct does that mean I will get the £1553.28 or did she mean they take 8% of the total and give it to me. Any help would be appreciated.
Last edited by Stephendg9 on Tue Sep 13, 2016 2:36 pm, edited 1 time in total.
Hi Stephen, I obviously couldn't say with 100% certainty for yours, but we were with Payplan and for all the successful ppi claims that paid up (not the companies that used the set-off method) Payplan refunded us the 8% interest. Nearly fainted when I was told my first one back in 2014 - I got back just over £2k interest and simply didn't believe the person I spoke to as from the beginning i didn't even know we had any ppi and secondly thought if we did ALL went to the IVA! so fingers crossed for you as it does likely that you'll be getting the interest.
IVA started Sept 2012, Full & Final accepted Aug 16th 2016 & CC issued 10th Jan 2017
The PPI is an asset of the estate and will be due into the IVA. If it's not dealt with by the time of closure then your IP will ask you to sign an assignment document signing the rights in the PPI over to the IVA. If you refuse to sign this the IVA will simply stay open until your IP has realised the refund themselves.
As regards the costs - this is up to creditors to approve and effectively comes out of their pockets/dividend.
A regards the interest that will depend on what agreement, if any, you have in place. Some firms will allow you to keep the interest element only of the refund.
As regards your assistance in getting this in, you owed your creditors a debt and your help with the PPI will result in them receiving more of the debt back than was originally anticipated. In any event part of the terms of your IVA would be to cooperate.
Based on what you have said the interest element is £1,553.28 of the compensation. I'm not sure what the 8% the lady at your IP firm mentioned relates to. 8% is the level of statutory interest creditors receive when there are sufficient funds to pay them interest in top of their capital dividend but this has nothing to do with PPI interest.
