www.iva.co.uk

Hi,

Hoping someone can help me.

I entered into an IVA in 2005, however it failed and was terminated in May 2009 as I was unemployed and couldn't make the repayments, since then I have been paying my creditors directly.

In July I was advised by a friend I may have been mis-sold the ppi on a loan I'd had which was included in the IVA and which I am now in a payment arrangement with a debt recovery company which the bank sold the debt onto. I made a claim and the bank have agreed I was mis-sold the ppi and offered me a refund, however as the last contact I had with the bank was via the IVA company they have paid them directly, I have contacted the IVA company who have advised me as it is an asset of the IVA they have the right to the money and will distribute this to my creditors.

Is this correct as the IVA was terminated 3 years ago and I am currently paying the creditors myself directly?

Many Thanks

At first glance this of course sounds wrong.

Have you checked the insolvency register to see that you are not still in an IVA for some strange reason.

You may have also just been talking to someone who doesn't fully understand that your IVA was failed at the IP company and maybe you need to go higher if this has really happened and have that money refunded to you.

Maybe Melanie or one of the other experts will be able to comment to give some guidance. x

I have checked the Insolvency Register and I am not listed.

I have also now found out the bank have also sent the IVA company a PPI refund for a loan I paid off in full in June 2004, can they keep this also?

i'm not sure on any of this but hopefully one of our experts will pick up on this and offer some advice.

Will keep this bumped up for you x

IVA company have said as the PPI policy existed at the time the IVA commenced in Aug 2005 it is classed as an asset - surely the loan which was paid off in 2004, the PPI policy can't be classed as existing as it ceases once the loan is paid off.

Any ideas?

Hi
I think this was just worded badly, ie it is not that the POLICY was in existence at the start of the IVA, but the entitlement to any compensation for any misselling of the policy was in existence, and therefore an asset.
this would also be true of the PPI on the loan that was paid off prior to the start of the IVA, if any compensation is due on this, then it was also in existence at the start of the IVA and therefore also an asset.
so it would seem that they are both assets at the start of the IVA, but that does not necessarily mean they are due to the IVA, that will depend on how assets are dealt with in your own particular case.

Your IP is correct insofar as the timing of the transaction occured - ie the policy was sold to you pre-IVA and thus any right to lodge a claim for mis-selling attracts to the same timescale. You do need, however,k to get your IP to prove that the monies are an asset of the IVA. Not all IVA proposals provided for this, and it is best to check before the monies are distributed to creditors.

Melanie,

How does one know if any PPI monies are classed as an asset and appropriate for inclusion in an IVA? Is it a specific clause in the agreement?

Yes - your IVA will either include an "all-assets" provision or not. Some firms are claiming that even if there is no provision, that the claim is still caught by the IVA, and so you really need to take specfic advice from your IP or former IP as to what their viewpoint is.