Finished IVA March 2012 and then received PPI payment which I've spent. What will happen now ?

[Caroline.cz]

i finished my iva in March 2012 and then recieved a cheque from ppi payment which i was led to believe from DFD was now mine, they have now asked for it back but the money has been used? what will happen now?

[Niobe]

Hi and welcome to the forum.

Have you received your completion letter? If not then I'm afraid the PPI should have gone to DFD to be paid to your creditors.

Please speak to your IP as soon as possible to find out what will happen now.

[disappointed]

This is a problem, we are all waiting to get our closure notice from the IP and the IP is not closing the IVA even years after the payments have finished so they can squeeze every last drop of pence out of the debtor, after all the IVA used to mean Independent voluntary agreement? It should now be called DTASFE Do this and suffer for ever!

[Niobe]

It's never meant independent disappointed - it means Individual Voluntary Arrangement.

[Shining]

I would echo to speak to your IP. If you've a letter which or correspondence that states or led you to believe the money was yours then do produce this.

Unfortunaely, we're all under the Terms and conditions of the IVA until we receive that certificate. x

[Caroline.cz]

I have emailed DFD to tell them that i was led to believe the money was now mine,but no response as yet! i have not had my certificate of completion yet, now worried as i do not have the money to pay back and am concerned what they can do[:(][?]

[Shining]

I'm unsure of what will happen maybe one of our experts will be able to say how they would deal with it in their practice. Although I would say there isn't a general way to deal. x

[Niobe]

I agree with Lesley that we're not sure but I do think that it should have been paid across as you've not had the completion letter.

[nickjohn]

My understanding is that if you have not had your completion certificate then you are still bound by the terms of the IVA and any PPI is a windfall and should be paid into the IVA.

I guess they could extend your payments until you have paid back the amount equal to the PPI, unless you have written confirmation from them that the PPI is yours..

[Leese]

If you don't have it in writing they have probably recorded the conversation. Give them the phone number the call was made on and ask for copy. You may still have to pay it back but if it is their error they should give you some time to do it.

[MelanieGiles]

Ask your IP to confirm why they believe that the monies are rightfully due to the IVA, and take legal advice on this if you need to. Not all PPI reclaims are assets of the IVA and it is important to confirm that claims are valid.