www.iva.co.uk

Hi
My partner made a full and final settlement to DFD in January, which was accepted on 7th February and I paid for him on the 8th Feb. In the meantime he was eligible for some cashback from Firstplus on a ppi premium, DFD were aware of this as they received a copy of the application form in january from Firstplus. F/Plus said that they couldnt process the claim until the outcome of the complaint against the broker who mis-sold the PPI (this has been going on since 2009 and has not yet gone to court or the ombudsman). However we have found out today that F/Plus have paid the lump sum to my partners iva account. DFD dont sound very hopeful about giving it back, Firstplus arent interested. What is the legal aspect of this please - we were relying on this money to pay towards my partners mortgage even though we werent expecting it yet. We feel that we would have been better just carrying on with the iva and paying the F&F amount off the mortgage now. If anyone can help me I would be eternally grateful

I believe that the funds are captured by the IVA as your partner was aware of the possibility of getting this money for some time. The full and final settlement would have been to finish monthly payments so nothing to do with the FirstPlus PPI claim. You could look for some legal advice or perhaps other posters take an opposite view to mine.

Thanks for the prompt response. We werent aware that Firstplus were going to pay out to be honest. We had a letter saying that they wouldnt process the claim until the ongoing court case was finished. Surely if the full and final has been agreed they cant keep the additional money?

That is a valid argument and may be worth pursuing. If creditors accepted the money as 'full and final settlement' then anything over and above that is excluded. However, a windfall becomes a windfall when a client 'becomes aware' so the FirstPlus PPI had already been captured by the IVA before the full and final was accepted. Therefore , in my opinion, the PPI claim was already part of the IVA and is not additional funds brought in afterwards.

This is only my opinion Emma and I hope for you and your partner's sake that I am wrong. Perhaps a variation may be in order to offer a compromise deal whereby the money is split 50/50 for example. Creditors would get more money and your partner would agree not to start legal proceedings which would be costly for all concerned.

Michael

Thanks again. I hope too that they decide in my partners favour, of course. There was nothing stipulated in the f&f documentation we received relating to the First Plus payment so we are just keeping our fingers crossed. We have spoken to the solicitor who is dealing with the mis-selling of the PPI and he doesnt think that they should be able to keep it but is checking on that for us - he has also offered to chase DFD on no-fee basis, which is very very kind of him.

Hi Emma
If you would like to email me with some details I am more than happy to look into from our side?

Thanks

Hi Declan

Could you confirm your email address please as *email deleted* doesnt seem to work.

Thanks
Karen

Declan

Ignore the last posting - I was having a blonde moment!!!! I have sent you an email - any advice would be greatly appreciated

Kind regards
Karen