Tricky Question
I had loan way back with citi financial, then years later had IVA, which citi was named on, i then failed on my IVA, years pass, citi write to me saying they refunding my PPI, but just redressing my account with the refund. i take up complaint with FOS, to ask for payment to be sent to me so i can choose who to pay, like court fines, council tax etc 1st. FOS ask for copy of my IVA, and ask for conformation if practitioner has interest or not in my complaint. so i contact company i had IVa with asking for above informtaion, and they advise that they can have payment and it to be distributed to all my previous creditors. so my questions are
can my IVA company do that even thought my PPI that was miss sold most prob pre dates even IVA's. and if i didnt have the miss sold ppi in 1st place i wouldnt of needed a IVA
2. is citi allowed keep all the premium or should they have send that to my IVA company
unfortunately my understanding is that your previous IP is right to claim the money and administer this to your creditors. I appreciate it may seem some what unfair but I believe this to be the case.
Do you have any of your IVA paperwork as this may clearly state in the proposal document or chairmans report what happens in these circumstances.
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The balance of any payments made to the nominee, or any third parties in relation to the original consultation or preparation of these proposals, less the fee agreed by the debtor, will immediately be paid into the arrangement for the benefit of unsecured creditors. Any such sums are to be paid in addition to the contributions offered in the original proposal.
The PPI claim will be seen as an asset for the benefit of all your creditors. Unfortunately you don't have a say over how the funds are used if it is included in your original IVA. If the PPI wasn't missold you would not have any monies to reclaim so the fact it was, is somewhat irrelevant I guess.
The wording in the paperwork can be difficult to work through so do go back to your original IP to get any clarity you need so you understand fully what has to happen and why.
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In regard to the complaint you have with CitiFinancial for the mis-selling of Payment Protection Insurance (PPI) I must make you aware that following the decision by UK banks to abandon their appeal against the outcome of the judicial review into the mis-selling of PPI, it has been established that where the mis-selling predates the closure of an IVA, any claim arising is classed as an asset which must be realised by the Supervisor for the benefit of the creditors.
Clause 10(6) confirms that the termination of the case does not affect the Supervisor’s powers in dealing with obligations which are necessary in fulfilling his obligations.
“10(6) Completion or termination (or both) of the arrangement will not affect the supervisor’s power to carry out such functions and to exercise such powers as are necessary for him/her to fulfil his/her duties, obligations and responsibilities under
the arrangement, Act and Rules and to resolve any matters that arise during the arrangement”
As the mis-selling of PPI occurred prior to the termination of your IVA, any compensation arising is an asset of the estate and it is your Supervisor’s obligation to distribute thes
e funds in accordance with the terms of
so i guess they claim the ppi then? even thou i doing all the work etc. if this money goes back into my failed iva . what will happen after. will my iva still b seen as failed
Hi Kevin, I completed my IVA and received closure certificate and in the course of the IVA paid the IP £600 to investigate the mis-selling of PPI and they recovered £20. Since IVA closed received an offer of £4.5k for mis-selling of PPI and even though IVA closed they are insisting the money needs to go back to the IP to pay creditors even though debt is now written off. This seems to be opposite of what your IP is telling you.............perhaps they make it up as they go along!!
Part i dont get with this is MY IVA Failed and after some searching i found the following information
What happens if my IVA fails
When a person who's in an IVA fails to maintain the agreed payment schedule as laid out in the IVA proposal, the IVA is deemed to be in breach.
It is worth noting there are several ways in which an Insolvency Practitioner can assist a client in maintaining their payment schedule for those who are keen to avoid their IVA failing. For instance, the Insolvency Practitioner can, at their sole discretion, reduce the size of the IVA payments or even offer a temporary 'payment break'.
But, eventually, after enough missed payments, there will come a time when the Insolvency Practitioner will have to consider the IVA to have failed.
When this happens the Insolvency Practitioner will write to all the creditors named in the IVA to inform them that the IVA has failed.
Once the IVA is deemed to have failed, the client is no longer under the legal protection of the IVA and their debts are no longer under the control of the Insolvency Practitioner.
Instead, the client becomes responsible once again for making payment arrangements to their creditors, without the help of the insolvency practice that was supervising their IVA.
so i dont get that im now in control of repaying all my creditors, why has my IP got have my PPI payment to pay these ppl. When im in control, shouldnt it be upto me not my IP
I have only been in iva for 18months but because the ppi was paid from a previous creditor not included in my iva it has been paid back, must admit wish I could have paid it off iva to complete without equity release in another 3 years but have urgent house repair that needs doing so have no option but to use the 5K for that.
Can anyone tell me how long am i bound by the rules within my iva. Mine got terminated in Sep 2010 but i am due a dpi refund soon and my isp is sayin they want the cash cuz of clause in my terms. i keep asking when will i b finally never b bound by any rules again within my iva. They keep sayin it was terminated in Sep 2010 so was wondering if any1 here could help me
My first thought was exactly what you mentioned in your later post. If the IVA has failed and you are now dealing with your creditors youself then why is the IP now involved again?
Last edited by MikeyM on Tue Feb 18, 2014 8:23 pm, edited 1 time in total.
They only got involved because f.o.s asked for copy of iva as citi was named on it. F.o.s also said they wanted letter of isp stating if they had a interest in the ppi payment. So i contacted iva firm and asked for above.that's when they told me about the clause in my iva regarding windfalls, but it terminated. so i just wanted find out when i would be free from all the rules etc in my terminated iva
I have been advised the following from isp : lthough you are no longer bound by the terms of your IVA in respect of monthly contributions and providing regular information regarding your financial position, your former supervisor still has an obligation to protect and recover any funds that constituted an asset at the time the IVA was in force.
Compensation for mis-sold Payment Protection Insurance (PPI) represents an asset of the estate and as such your former Supervisor has an obligation to recover this money for the benefit of your creditors, until all PPI Claims have been realised or you have repaid your all your creditor 100p in the £ plus statutory interest at a rate of 8% per annum.
Only at this point will your former Supervisor have met his obligations and no further interest in your case.
To me it says i will b for ever bound until i repay everyone or i can some how prove i dont have any more ppi's or unexpected windfalls. just don't make sense
