www.iva.co.uk

Hi,

my iva has been complete for over 6 month now. I've recently received a letter to reclaim ppi from a bank. I didn't think I'd be successful but thought I'd fill in the questionnaire. I haven't heard back yet as it was only last week but just wondered what happens if I'm successful? Will I have to give it to my iva even though it's now complete? Or will the bank withold it all for the loan I had with them that was included in the iva? Obviously if I get any money I don't want to spend it and then find out the iva was still entitled to have it.

thank
meg

Hi Meg -- this is still a very grey area. Some proposals exclude PPI -- many don't ( even if it isn't mentioned specifically).

Again some creditors will offset a PPI refund against the debt, some will pay it to you, and some will pay it to the IP.

Some IP's will want the money paid into the IVA, some won't --- those that don't are possibly playing with fire as the creditors might have other ideas.

I am afraid this is not a very helpful reply ---- have you received your certificate of completion yet ? If not you are obliged to inform your IP in any event.

Ho
thanks, yes I have got my completion certificate.

There are four potential options:-

1 The creditor will refuse to accept your claim
2 The creditor will accept your claim but off-set it against their debt in the IVA
3 The creditor will accept your claim and the money will need to be paid to your IP, less your personal tax liability on the interest element of the claim
4 The creditor will accept your claim and your IP will declare that they have no interest in the money.

The try answer will lie in the strength of your claim, and the wording of your former IVA proposal.

Hi, I have replied to various things on the forum but PPI reclaim and IVA is still in its infancy. However, I have been successful in several reclaims (relatively Small), however I have won them and the redress has been paid direct to me.

I would suggest however to;

1. Make sure the IVA has been fully implemented and the certificate received.

2. The notice of dividend has been received by you and a copy of this can bee sent to your ex creditors.

IPs do gain out of these PPI and it can help your case in so much as the redress can be made to your IVA had it not be concluded. You may indeed be able to conclude early, but will not receive any direct payment from your creditors.

However, should you have concluded and received your documentation, there is no reason why the PPI cannot be paid direct you.