www.iva.co.uk

Hi
I have got PPI for my First Plus secured loan in which I am due a refund (if not claimed against)in June 2011 of approx 19,200.00. My IVA will finish in December 2012 Do I pay this off my secured loan or should I claim the refund and pay it into my IVA ??

Or should I try and cancel this insurance now and try and claim I have mis-sold it. It is very very expensive at approx 150.00 per month. I could do with this money at the moment.
Just heard this morning that they are putting my gas and electric monthly payments up.

Hi
The refund will be seen as a windfall so it may be better to pay it off your secured loan.
You could cancel it now but that will just increase your disposible income and hence your IVA payments.
Regards

Andy - it is still a windfall even if it is used to pay off the secured loan.

Some creditors reduce the loan and claim a reduced amount in your IVA - discuss with your Supervisor(IP)

Hi Caraf,

If you cancelled the PPI at this stage then your payments to FP are very unlikely to decrease by much each month if anything at all. Unless you can reclaim the money as a missold product then you are better off continuing to its fruition at 60 months when you can claim for between 95% & 100% (dependent on the underwriter of the insurance)of the PPI taken out.

Given the difficulties they are having lately it may be worth writing to them if you feel you have been missold the product. I believe they aqre more receptive to the claim in the current climate. All calls would have been recorded so if you were told you had to take the PPI to get the loan then you may be able to claim it back. You would not of course get any money back but it would come off the balance outstanding and would reduce the monthly payments which would not happen if you just cancelled, as the interest on the PPI is front-loaded.

This is a secured loan - so there is no reduction of lending in the IVA!