www.iva.co.uk

Hey Peeps hope everyone is OK.

I have recently been advised that I am due PPI comp back on accounts I had with Lloyds TSB.

cut a long story short the majority of the comp will be from when I had a joint account with my ex partner.

I wasnt even aware we have PPI on these accounts as he dealt with all the money issues at the time.

As he has also received a copy of the letter he is claiming the money should be retained by him as it was his wages that were paying the debts at the time.

Can he legally do this and what happens to my IVA if I am not able to pay this money received from PPI into it?

I am sooo confused with it all.

Thanks

Hi

I would think that your ex partner should be entitled to half of any refund but the bank may offset the whole refund against the original debt.

Regards

I'd think it would be like a mortgage if you had one in joint names but he paid it all every month, he will be entitled to all its equity. (more or less) I think the law nowdays works on the basis what you get out, is by what you put in. I cannot see any reason why this would be different?

An easy option is to let him have half as it is in joint names.

A messy scenario would be that whilst he may claim he used his money to pay the debt it could be argued that your money went on paying other household expenses as his was being used to pay the debt and if you did not have any income then why was your name on a loan that you could not service and if you had no income then he was happy to keep you and use your services to keep the family home, cook meals for him, shop, wash I could go on.

Ultimately he will have to spend time effort and money on this and if he does not have access to any receipts for shopping / gas / electric / petrol / car tax / council tax etc. etc. etc. then it will prove hard to resolve.

Also Lloyds may just say that as you made the claim and you have the IVA then the money goes to your IP..

Clare I received PPI comp and the loan had been in joint names with my husband I had to send a copy of the letter to my IP and pay back half of the payment

I think you will find that the split is 50/50 irrespective of who paid what, however neither of you may receive anything if lloyds decide to offset it against the debt. After all if there is money outstanding why should your ex receive any of it as surely he is also responsible for repaying what is owed on a joint account.

Karen

If its not a joint IVA then why should the partner pay into it.. from my understanding of the OP it is an old account which is paying out..

Can a creditor offset an IVA reclaim against themselves before having the funds put into the IVA?? wouldn't this be to the detriment of the other creditors as they would then receive a lower percentage back than the creditor who took the PPi money??

Let him claim it!
If they pay the money to him how in this world would your IP get any money off him, your ex, for your IVA?

You will be no better off either way, you do not say if you have children but if you do hopefully he could use any extra income for their benifit.

Good point Heretoday let him claim the full amount, then at least someone other than your creditors get the full benefit..

If the loan was in joint names then it's 50/50 if it isn't then that's a different matter, as nickjohn says whilst your ex may well have paid ex amount so you were also contributing. Good luck hope you find an amicable answer to this. x