Does anyone know when PPI statutory refunds are paid. Signed and agreed GT spotty letter, received PPI refund (paid straight to IVA, is the interest element only repaid when completion certificate is issued? No response from GT. Just wondered if anyone had experience of this.
I was told by GT is will be paid when all the PPI is completed, and it is only the interest on what is paid to creditors not the amount received so it will calculated be after EIC and GT have there cut.
Last edited by Pandy on Sat Oct 05, 2013 11:54 am, edited 1 time in total.
If life is what you make it, I must have been in a strange mood when I made mine
I was of the understanding that the interest element would be paid over when it was received, less the costs for EIC (35%) and less the GT fees (25%) - they may also take off the tax element you will have to pay (20%), if they do not take the tax off remember that you will need to pay this direct to HMRC.
All in all the amount you actually get back is quite small (if you had £1,000 of interest paid you would get back about £200 after all deductions) and I believe the carrot on the stick offered by GT to get people to sign the "spotty letter" is very miss leading..
Hi nickjohn,
This is part of the email I received from GT regarding this, copied directly from email
*
I can confirm that your variation meeting was accepted by creditors and you are therefore entitled to retain funds of statutory interest, however in line with term 2 of the variation, this is net of costs. Therefore all sums must be paid to your IVA in full in order for the necessary costs to be deducted once all PPI claims have been resolved. The statutory interest due will then be refunded back to you.
I took that to mean it was calculated after they had all had their cut and it wouldn't be paid back until PPI was complete
Last edited by Pandy on Sat Oct 05, 2013 1:15 pm, edited 1 time in total.
If life is what you make it, I must have been in a strange mood when I made mine
Thanks for your replies. I'm sure after all the cost deductions it will not be a lot, but then I wasn't expecting any PPI refund, so anything is a bonus really, that's why I was quiet happy to sign the paperwork.
I know it may be reasonable but if you think about your creditors, why do grant Thornton and EIC ( same company) get 35percent and then 25 percent of what your creditors should be gaining. At least we know how they make their money!!
Why are GT taking 25% of the element which they have accepted is returnable to their clients. If the interest is not deemed to be an asset realisation, then no fee should be charged. And the interest sum should be paid over as soon as the refund has been received.
Until such time as we have a forum poster who has managed to get interest repaid we don't know what deductions GT will be making. It is only an impression that they have given in communications with enquirers that they will deduct fees.
We shall have to wait and see upon what.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The spotty letter does detail that any PPI monies reclaimed will be subject to the fees (theirs and EIC's), as the interest forms part of the PPI reclaim then I guess they feel it is acceptable to deduct their fee.
They can only draw fees on actual realisations. If they are deeming that the interest is not a realisation - and it cannot be if they are giving it back to their client - then they cannot charge fees unless the IVA allows this. Maybe this was another thing included specifically in the mass variation terms?
Mel,
Section 2 of the variation proposal states that the interest will be repaid NET of cost, they don't specify what the costs are though, it might just be EIC's cut or include there % of monies collected. Until someone gets the interest refunded we just do not know
If life is what you make it, I must have been in a strange mood when I made mine
I have had several conversations and emails regarding this with gt.
The answer I got was that we will receive any interest once all the ppi has been received/investigated. They confirmed that this can be done even after the iva has closed.
In short, it's on their timescales. My iva ends July 2014 but the ppi investigation can run as long as it wants.
I have contacted the regulatory authorities about this to see what they think, will let you know when they get back to me. Don't know if anyone else wants to ask the question on their website, they will maybe look into it if more people ask. Just looked up financial regulatory website
