Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
would you not get to keep 50% of it if were to be returned to you?
I had PPI on a loan and have been debating if it is worth challenging Natwest over it as I have no doubt that the product was mis-sold and represented.
I don't think so. It would either be used by the firm you are claiming from to offset against their loan, or be distributed amongst all your creditors.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It does depend on what your individual voluntary arrangement says about the treatment of windfalls. Some earlier IVAs do allow the retention of 50% of any gains.
Reet, I received a letter today from Lloyds TSB saying, "the relevant department has stated that as the refund is your loan protection policy, this must be paid to your loan account to reduce the existing debt".
I will obviously pass this to my IP to see if they can do anything, am I right in thinking that this favours one debtor over the others?
Anybody.........
I don't think it is. As your debt to Lloyds will reduce, it will mean that your other creditors will get a higher dividend.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Will the other creditors realy receive an enhanced dividend?
It seems to me that this may only be possible if the IP takes the step to reduce the dividend payment to Lloyds or alternatively (and less likely?) if you were originaly agreed to pay 100p in the £ plus costs in your IVA.
Perhaps your IP can clarify if they intend to reduce the divy share to Lloyds as it would seem totally unfair for them to directly benefit above other creditors for their mistake....?
Sorry, I have to admit that I personaly would get some enjoyment from trying to sort this kind of issue out and get a fair and equitable result. [;)]
If it goes towards paying the debt to Lloyds, then surely they will not be claiming the same amount from the IVA? There is an agreed dividend and they cannot receive any more than that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I appreciate what you are saying and fully agree if that is their intention. I just think it needs to be backed up by the IP taking a positive step towards ensuring their future dividends are reduced.
Of course to be completely fair and equitable, this should be in the form of using the £2,000 in lieu of any dividend payments until this sum would be consumed. That way they would not benefit from receiving payment early and ahead of other creditors. I still think that any other creditor that is party to the agreement would take a different view point on how Lloyds propose to handle this.
I'm not 100% sure on how it works Andy, so I won't argue with you.
Let's hope one of the professionals can come on and settle it for us.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I prefer to think of it as friendly debate rather than an argument. [:D]
Anyway, when it comes to how this works in practice, I am no more sure than you. I just hate the thought of them gaining some form of unfair advantage above any other creditor when they have clearly admitted their fault.
As far as I can see, Lloyds wouldn't gain anything. They may have had some money paid back early, but the rest will be at the same time as the other creditors and I presume that the other creditors will be happy that they are getting a better dividend.
And I agree that it is a friendly debate Andy![:D]
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This will cost Lloyds especially as they may have already paid the premium to the insurance company who might not refund it. The overall dividend will increase to creditors but Lloyds' claim will reduce.
If the debts are £40k, Lloyds are owed £10k and the money for creditors after fees is £20k the dividend would be 50p in the £ [£20k divided by £40k]. Lloyds would therefore receive £5k. Now that their claim has had to be reduced the total debts have decreased to £38k but the funds for creditors remain the same £20k. The overall dividend would increase to 52.63p in the £ [£20k divided by £38k] but Lloyds will only be paid on a claim of £8k so the actual cash they will receive is £4,210 [£8k x 52.63%].
Lloyds will cretainly not benefit from any misselling but the other creditors will.
