Well it has been nearly 3 years since I last posted here and I am hoping to find some wholesome advice on my issue.
I recently was advised to reclaim my PPI on certain loans/mortgage I had back in 2003. At this time I was not in an IVA nor had any idea I would end up in one. So the PPI was taken out on 23/10/2003 via FirstPlus.
We entered an IVA on 16/02/2006 which included FirstPlus as a debtor.
We settled our IVA early on 26/02/2010 and received a completion certificate on 06/03/2010.
So that's the background to my issue, know after fully looking into the PPI reclaim procedure, I was led to believe that right to reclaim PPI was based on the time the product was sold.. i.e. 23/10/2003. and NOT the time/date when the agreement or PPI Offer is made.
SO my question is, why does my PPI from PRE IVA status have any reflection upon my POST IVA status?
I know that this is a huge GREY area in the IVA/IP world at the moment. But does this mean that should I be so lucky to win a small Lottery amount, that this too would have to be included in an settled and completed IVA?
I feel that after finally getting through the nightmare of debt, IVA's and numerous health issues that this has once again had to be re-opened and the old wounds flared up.
So my loves any advice, insight or thoughts on where I go from here would be lovingly received.
If I understand this correctly, your PPI would have been an asset of the IVA as this was in existence when you took out your IVA. A lottery win now would not fall into this category as this was not an asset at the time of the IVA.
This is my understanding, and I do stand to be corrected. I also thought PPI claims could only be made on loans taken out post 2004. Again I stand to be corrected.
The issue of lottery wins and other windfalls post IVA is relatively easy, the IVA is closed the money is yours. It is an asset that was not in existence before or at any time during the IVA. Happy days.
PPI is slightly different, inasmuch as it did exist, although you may not have been aware of it. If you were bankrupt, then unequivocally the asset belongs to the Trustee indefinitely and has to be paid over. That said, I have seen instances where it has been reclaimed and NOT paid over. I wouldn't recommend that of course.
I think you should put in a call to your IP, he or she may consider it an asset but may work with you to reach an amicable arrangement. Then again, they may decide that the case is closed and that you are free to pursue your claim. Best to hear it from the horses mouth I would say.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Thank you Size 5 and KAYKAY, I will contact them all and see what happens, just want to make sure that I follow the correct path and don't end up the wrong side of right as they say.
So many IP's have it down as a Grey Area and makes me wonder who sets their guidelines and rules and whether legislation has to be changed or reviewed before we can all sort and settle our IVA accounts. I truly believed that after 2 years of settling my IVA I would never ever have to re-open or re-visit it again...
I think one of the issues aswell in this situation is that some other posters have found that when they have reclaimed PPI to a debt that was in their IVA even after completion the creditor has not refunded the PPI claim to the debtor but applied it to the written off debt anyway!, so if you do go down this route I would be very cautious about using a claims management company, if First Plus didn't pay out to you but instead applied it to the debt you had with them, you could still end up with a bill from the claims management company for the work they did
Insolvency law is largely based upon statute, but Individual Voluntary Arrangements are contractual and therefore contract law plays a big part in determining outcomes.
English law has devolved from centuries of parliamentiary reforms and case law. Things continually change and the issue of PPI is no different. It may take a few test cases to be brought to Court before things are clearer for all of us - and ultimately there may be new laws passed, but this will all take time.
This is what I am discovering, I was not aware of this nightmare before I claimed back PPI from First Plus if I had been I would have let sleeping dogs lie and walked away.
Thank you too Melanie, your advice is always so helpful.
Just a thought, sorry for throwing so manyh of these out here today.
If our IVA's are based on contractual law, then surely if a contract is taken out, completed and settled to it's conditions and requirements. Surely the IP's can't add clauses at a later date to cover issues like PPI after they have closed. Because the person entering into the IVA contract was not made aware that inception of the contract, therefore surely it can not be up held?
Like I said just a thought and would like to hear your thoughts on that xxx
IPs don't and cannot add clauses to IVAs once they have been accepted. But if the IVA provides that all assets are included in the IVA, then that is a matter of fact - hence why PPI claims are being treated as they currently are. The right to PPI claims existed at the time the IVA commenced and therefore the proceeds are rightly due to the IVA creditors.
Thank you Melanie, I am beginning to have a clearer understanding of the issue thank you.
What I am concerned about is that the PPI Claims people do not mention anywhere on there information about people in IVA's where still current or completed. Had there been any warning from either them or my IP I would have steered very well clear...
Hi All. Been reading but not posted for a while. The challenges to my physical and mental health continue and I am still unable to work. I ended my IVA early with a F & F from my redundancy package in July 2012 (higher dividend than originally agreed), and await my CC. My only income is £71/00 ESA, and my redundancy money will run out in approx 3 months. My mortgage alone (£96k) is £770pm - due to increase by approx £26 in October/November, and have virtually no equity. I am on a variable rate as Santander wouldn't allow me to fix again due to my IVA. I am awaiting the outcome of my DLA claim. That's the background. I submitted an application for ill-health retirement, and though I understand it's very hard to get, I wondered whether I would have to pay more into my IVA if I was successful and able to get a lump some from my pension. I would take a lump sum to reduce my mortgage significantly so I could afford to pay the mortgage and not lose my home. I would then need to keep surplus to 'top up' benefits/ pension to cover my bills. My question is: would the pension lump sum be classed as an asset of my IVA, and if so, would I be required to pay the outstanding balance, fees, and statutory interest, or could I ask if they would consider a lower offer so that I could keep my home. Any advice would be greatly appreciated, as my only other option would be to sell up now before I accrue any arrears. I would be forced to sell anyway if I don't get ill-health retirement, and I woulld be homeless. Thank you, x
IVA journey started: 30th March 2009. Settled: 17th July 2012. Completion Certificate received: 13th March 2013. Breathe. x
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
IPs don't and cannot add clauses to IVAs once they have been accepted. But if the IVA provides that all assets are included in the IVA, then that is a matter of fact - hence why PPI claims are being treated as they currently are. The right to PPI claims existed at the time the IVA commenced and therefore the proceeds are rightly due to the IVA creditors.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
IPs don't and cannot add clauses to IVAs once they have been accepted. But if the IVA provides that all assets are included in the IVA, then that is a matter of fact - hence why PPI claims are being treated as they currently are. The right to PPI claims existed at the time the IVA commenced and therefore the proceeds are rightly due to the IVA creditors.
Hi all, I am totally new to this forum and wondered if anyone had any more advice on the the Firstplus PPI claim question?
I have been in an IVA since 2009 and am starting to see a slight glimpse of light at the end of the very long, slow tunnel!! I too have been told by Firstplus that I could claim mis sold PPI (taken out in 2006) and cleared 2007 (if I recall). As they are not a current creditor to my IVA will I still have to pay money to my IVA or would I be able to keep it?
Just a small update on my post here, After successfully getting my IP to agree that they wanted no part of my PPI refund and that all monies where due back to me and my partner.
They confirmed that we were no longer restricted by our arrangement and that we were entitled to pursue and reclaim any mis-sold PPI due to us and that is does not fall under the terms of our IVA Arrangement.
As you can imagine that this was very good news for us and Firstplus made us an offer of settlement.
That's were this fairytale has taken another wrong turn, after months of negotiating and sending my IP's letters confirming refund due to us, I have know been informed that Firstplus will be withdrawing their offer to pay me directly as they have decided to apply my compensation to the loss they suffered when the IVA was settled.
So here is my question for all you legal beagles out there please....
The IVA was a legally binding contract between myself and my creditors, whom as part of that agreement agreed to be bound by it's terms and conditions. One of those being that all liability and redress of loss be written off and accounts closed and settled and marked as closed.
So how can they know state after making us three different offers of settlement, that they are applying this compensation from our mis-sold PPI to their losses.
They agreed to write off and settle the loan as paid up when the IVA finished and was settled in 2010.
This sounds like a big bag of sour grapes on their end.
But another concern is how can they just decide to go back on a legally binding contract they agreed to abide by and also does this mean every other creditor on my IVA might decide that their written off losses might be worth pursuing too?
I am a very worried bunny and if there are any legal buddys out there who could point me in the right direction for advice, I will be eternally grateful....
