www.iva.co.uk

I completed my IVA last year, one of the conditions of my IVA being completed was a PPI check, I filled in all the paperwork and heard nothing back and have received my certificate of completion. recently the Halifax contacted me direct about my PPI and a letter I received Saturday offering me £8409 in PPI compensation. is this money mine to keep? I know that my IVA has been completed as I have been removed from the insolvency register and have qualified for credit. please help

Yvonne

You need to check this with your own IP although I am surprised the money has not been offered to them. The IVA may still be open with the IP to administer the reclaims of PPI even if you have received your certificate.

Hi Yvonne. I would imagine the refund cheque will be sent to the claims company dealing with PPI on behalf of your IP and the money, I am afraid, will be paid out to your previous creditors as an asset of the IVA.

Even if you get the cheque there is a very high chance the money isn't yours to spend

If you get the cheque I'd speak to your IP to arrange for it to be paid over if needed.

Martin

Our PPI cheque came written to The Trustee of Mr S *******, we had to send it in regardless. Ours was for over £13,500 so you can imagine how gutted I was especially as we had fought Barclays ourself back in 2008 and they decline to sort it out, I eventually contacted the FSO and it was upheld but got minimal refund. I feel your pain I honestly do, it's like 'Here's what you could have had'
Ironically had we not have take the PPI in the first place our finances wouldn't have suffered so badly trying to maintain the monthly payments and resulting in us going down the IVA route. However that juicy check did help us tremendously with our F&F offer being accepted.

I doubt your IP would have closed your case down, if they had felt that there was outstanding PPI - so if the money is sent to you directly, I would think that you are pretty safe to keep it. Was PPI specifically provided for within your IVA proposal? Did the proposal provide for all of your assets to be taken into account?

Was there not a legal document (power of attorney or similar) which allowed the IVA to complete with PPI outstanding ?

If so the paperwork that pixie filled in should be looked at again to make sure this isn't the case.

Personally I'd want the ok from my IP before considering the money mine.

Martin

I've been back through the original paperwork and nothing is mentioned about PPI being included. I have spoken to GT and they have said that the PPI will need to paid into the IVA as there is a 'post IVA clause' for this. is it worth fighting this?

PPI will not have been mentioned specifically in most ongoing proposals as it was not thought about at the time. It is, however, regarded as an asset and, as such, can be clawed into the IVA, unless excluded.

GT maintain that it has to be paid over in every case as, had you known about it at the start it would have been declared as an asset and taken in.

They have a very weak arguement, but, nothing has yet been tested in court and so they hold all the cards in this particular game.

ok I'm starting to get stressed now. received cheques from the Halifax for the PPI claim. all payable to me, not a trustee. so what do I do now? I'm really reluctant to hand this over GT when they've issued me my CofC as I understood that to mean the IVA was done. waiting for a reply from Cartridges solicitors to see what they advise.

No expert so someone feel free to correct me on this - Your only liable to pay the full amount plus fee's. Anything left over is yours. Unless the creditors seek lost interest of course. If you owed less then that amount to do the above, the remainder would be yours??

If I were you I'd bank them, put them in a savings account and don't touch the savings account until you get agreement from your IP or obtain advice (advice that is prepared to reimburse you if it turns out to be wrong)

My thinking is that if GT do ask for the £8k and you don't have it things could get very messy, especially as GT probably plenty of resources to fight over it.

Martin

that was my plan martinw, I have a bank account with Lloyds that I can never remember the pin for so they'll be safe there!

If it was me, I would pay the cheques into a savings account and see what happens over the next few months.

Any question to GT, I feel sure, would be met with the response that this money is due to be paid into the IVA -- rightly or wrongly.

My own feelings are that, if the completion certificate has been issued, with no specific terms included regarding PPI, then that is the end of the matter as far as the IVA is concerned and the creditors should take the IP to task for dereliction
of duty in failing to address this, not the debtor, who has, after all, been formally released from all obligations by the issue of a certificate of completion.

This need not delay the issue of certificates of completion, as long as the IP does the job they are being paid for and accounts for outstanding PPI issues in the terms.

This whole PPI issue has been handled incredibly badly by the Insolvency Service as a whole, with nothing but opinion to go on. Those firms that are attempting to sort this out sensibly are swimming against a strong current!

I'm of the view that once you are on receipt of your completion certificate, you are no longer bound by the terms of your iva. The clue is in the word 'completion' Simple as that.

So unless you have some sort of unusual clause allowing completion pending PPI recovery, the money is yours.

Good luck.