www.iva.co.uk

Can creditors claim "windfall" money after the IVA has been completed??

I started an IVA in 2007, but by 2009 I had repaid the the whole of it off with full and final settlement (courtesy of bank of Mum and Dad!)

I recently had a letter from Santander stating that they believed I was misold PPI on a loan. I completed the necessary details and it was confirmed that £1040 was due back to me.

I sent my bank details to them and when I eventually received the money back from them it was only £240 that had been refunded.

When I called Santander to ask where the other £800 was they confirmed that it was used to pay the arrears I had on the account.

They stated because I had merged Loan 1 into Loan 2 I was only entitled to the balance of PPI from Loan 1 (the £240) as Loan 2 was the one I "defaulted" on.

I never went to arrears at any point prior to my IVA being created or concluded. So assume when they state "defaulted" they mean the creation of the IVA??

The man I spoke to was not able to comment, and referred the matter to the claims processing team, however I doubt I willhear back any time soon.

Is it correct that I am penalised in this way?

Hope you can put my mind at rest!

Many Thanks

(ps. sorry I have "reposted this, but I did not received many responses and have added extra details - really want to know some professional terminology to throw back at the bank as I am sure this is not fair or correct)

I hope one of the experts will pick up on this - I have no idea as there are two seperate loans involved.

Thanks for the reply.

What is the situation with just one loan?

As far as I am aware, once you have completed then any PPI claimed on a loan afterwards should be yours.

I've no idea what Santander have done though with merged loans.

As far as i am aware it's the same. I just wanted confirmation so I don't sound daft when I argue it out lol

Thanks for your reply again

Nadine

I think differently actually. The PPI was mis-sold prior to the iva so the claim is there but dormant during the life of your iva. Therefore it is an asset available to your creditors even though you have subsequently completed...as in fact, your iva shouldn't have coMpleted until all funds available to your creditors had been realised. That the claim wasn't known about during the iva doesn't change that it was an asset for the creditors during the iva and therefore payable to them retrospectively. That's what I think anyway - seems logical based on the current claims arguments. And the terms of the iva apply to all assets and windfalls held at that time (even unknown ones). Would be good to hear from the professionals as I could be totally wrong!

Back in 2009, missold PPI wasn't such a big thing and probably wasn't thought of in this instance which is why the IVA completed.

I am just so thankful I never took any out.

If you're IVA is complete then that is that regardless of whether you find yourself a windfall that you knew nothing about.

Just because you get a 'Windfall' that may or may not have been included in your IVA when your IVA is complete and for some strange reason someone thinks you should pay it across retrospectively is plain ridiculous. Just how would you do that exactly?

You've met your IVA obligations, you've got your completion certificate, you've come off the register, your creditors have updated the credit agency records.

Money is yours.

Thanks for that! My thoughts exactly!!

Will let you know how I get on

Nadine

Hello Nadine P
I would go back to them for the full money or raise it with the FOS as you should be due the full money.

If your IVA completed in 2009 then all the accounts should have a zero balance and all ppi refund will be due to you.

I was in a similar situation where after my IVA completed in May i had a letter about 1 loan which i filled in the details and it went through the FOS as the bank said no, then they changed thier mind and offered £1700 but due to IVA said no money due. I sent them IVA completion letter and email from supervisor and threatened going back to the FOS and now they are going to pay me the full £1700.


regards
steve

Thanks for that. I'm going to call them this evening and if still no success I'll formulate a letter to that effect and enclosing necessary enclosures.

I wouldn't mind so much , but I never defaulted at all on the loan! It's mad!

I'll let you know how I get on

Thanks

Nadine

I called Santander yesterday to be told that they have made the correct decision and that I am not entitled to any more than they have given me.

I will try writing to FOS and see if they are able to assist.

Hope they are as I have a few credit cards that I know I have the same sitaution with, and would hate to see them profit even more off me lol

Thanks for your help

nadine

If you completed with a f&f paying back 100% then I do not see how they can retain any of this as they have already received there full amount !
I would personally be liasing with the powers that be and. Be taking them all the way !

Did the F and F repay the whole of the debts plus fees and interest though?? If not the accounts would show as partially satisfied or settled and I imagine lenders are within their rights to offset any paid out ppi claims if an account still has a balance.

Paul

Your IVA has completed so your creditors can not make any further claim whatsoever against you. The money borrowed which gave rise to the debt and the insurance policy that was sold are two distinct (and completely separate) things. Upon entering onto an IVA you have a balance against each creditor and a dividend is agreed on that balance. If the balance was say £1000 and the PPI was £100, then the amount of the "debt" should be £900 and not £1000 therefore logically you could logically argue that the dividend at the end of the Iva has actually been understated. The creditor has sold a policy and therefore deprived you of the use of those funds. I would go straight back to them and demand the balance, what would they do if the boot was on the other foot?