PPI, Confusion & Cake

[Mutley1968]

Well here i am again, with an update and new questions.

I am currently in an IVA with Freeman Jones (£33,000 of Debt), 3rd Year review pending

I am in the process of claiming PPI via Think2Claim, from :-

Marbles - Investigated & Denied, after at least three weeks they have still given no reasons to Think2Claim or actually informed me of any decision, i only found out when i called T2C and asked for an update on my claims, until there reasons are given, i will have to wait to see if it's worth pursuing (how long is long enough to wait?).

MBNA - Still Investigating, now over 8 weeks.

C&G - Still Investigating, i did not know about PPI on mortgages, but i do have numerous "Homeowner Loans" with them, now over 8 weeks

Barclays - Investigated & Denied, whilst i received a letter and reasons for denial, they have so far not told T2C anything, i am forwarding a copy to T2C to see if it's worth pursuing, i believe it is as there reasons do not ring true with me.

Argos - Still Investigating, now over 8 weeks.

Lloyds - Awarded £15,600 in PPI, after confirming what i already knew, that the money will be going back into the pot, i was left with these questions.

Since i owed Lloyds around £16,000 when i started my IVA 3 years ago and i have now been awarded £15,600, does that mean, including 3 years of payments to Lloyds via my IVA, if my award is more than i owe Lloyds, i will get the diffrence back ?

I ask this because i have been previously told my IVA was started in a period when only each creditor would receive there money and it would not go into the "Big Pot", if thats true, can i expect the change....if any ?

Ofcourse there's fee's to pay to T2C, so the point may be moot.

The letter also itemised the 8% Statutory Interest (Tax Paid)

I still cannot find out if i will receive the first £500 of any claim or if i receive it all if the company sold on the debt, which everybody apart from Lloyds & C&G have.

And as a last question, once any money i receive goes into the "Big Pot", does this leave me in a better position to negotiate a Final Payment if i wanted to settle early ?

Oh, and incase your looking, There's no Cake

[Foggy]

I was only after the cake !!!!

The trouble is PPI related matters change daily and I know, with FJ, each case it treated according to it's own merits, as to how the proposal was drafted and what might have been subsequently offered / agreed / changed. Only they can tell you what is going to happen!

The PPI refund doesn't materially affect the IVA re term and payments (unless you hit the full repayment figure), however, I believe that it does put you in a stronger position regarding any settlement as the creditors are that much nearer getting what they signed up for.

In my case, the IVA had become unviable due to my marriage breakdown and, as luck would have it, my PPI took the dividend already paid up to around £200 less than the anticipated dividend they expected -- so they settled. The PPI was over £8000 --- had my dividend been £8200 short, my guess is that they would have simply failed the IVA ... but, one can only guess.

[Mutley1968]

I knew the old "i have cake" ploy would work

I read my agreement, back to front and upside down looking for any clues, but nothing popped up, i suspect i will have to sit and wait and see.....patience is not one of my strong points.

I was initially due to pay 40p in the pound (i think) so dropping about £12,000 after fee's into the "Big Pot" should have changed those numbers quite a bit on my £33,000 owed.

Strangely the two companies that initially said no at my IVA meeting are both companies that said no to my PPI claim.

I do think that after every yearly review, a balance sheet should be provided of what you have paid, where it went and how much you owe, i know it would definetly be a benefit to me to know where i stand, theres something about seeing it all in black and white that makes you put your mind at rest.

[Steven Hewitt]

Dear Mutley1968

As you know we are still in the process of dealing with your PPI claims and we are doing all we can to chase things along for you.

Any payment received in connection with miss-sold PPI isn’t subject to the windfall clause which allows you to keep the first £500. However, any PPI refunds paid into your IVA do of course reduce your amount of overall debt.

If you would like us to call and discuss things in more detail please don’t hesitate to let me know.

Thank you

[MelanieGiles]

No-one can possibly advise you on the forum about the rights or wrongs of the claims management process in your case Mutley, and wearing my Claims Manager hat for a moment, rather than my IP hat (I also run a Claims Management Company) - it does seem that everything is progressing with your creditors at a reasonable rate.

In many cases your creditors will seek to exercise their right of set-off - whether this is actually legal is yet to be tested at Court - but if there is a surplus this will be repayable to you, and may have to be paid to your Supervisor in the event that the asset was caught under the terms of the arrangement.

[Mutley1968]

Thankyou for clarifying the £500 clause Steven.

Thanks for your words Melanie, if i sit back and think about it i am no doubt being over eager and wanting everything now.

I think i will sit back and wait to see what happens next, rather than scouring the internet for random pieces of information that in the long run will not actually get me anywhere.

It took me years to build up my debt, so i am sure i can wait to see what happens with it.