www.iva.co.uk

Hi, I am currently in an IVA. It ends during later August of 2011 after 5 long years. I am currently pursuing a PPI claim on the loan I took out with my bank that eventually became part of my IVA. If the bank agree to pay the PPI back to me does it need to contact my creditors within my IVA? I was under the impression that banks will not and do not discuss information regarding a clients money. If my IVA does not know about a possible windfall from a PPI claim how would they get to find out? Any comments appreciated. Are the banks now obligated to disclose information about payments to individuals in debt?

Hi and welcome.

If your PPI successful, you may find that it takes that money to offset against the money you owe to them which they are quite entitled to do. They may also pay it across to your IVA. Either way your creditors will get a better dividend.

It is always possible that your IVA company may get to find about it so it's always best to be honest and pay it across.

Yes I suppose you're right. I was hoping to keep it a secret. You've shown on your reply (under cartoon) - IVA payment 2 years 6 months and 19 days to go. I only have around 10 months on my IVA to go. If I am successful in my PPI claim I would assume that paying towards my IVA will shorten the time I have paying it off?. If not what would be the point to claim something only to give it to someone else! In any event the claim has not yet been decided. I'm sure that of late the banks have had enough of paying people back charges and claims and are fighting back against this. We shall see if I am successful and how much I have to forward to my IVA.

Unless you are going to pay back 100p in the pound plus fees and statutory interest, then the IVA won't conclude any earlier. Your creditors will just get a better dividend.

I'm beginning to rue the day I entered into an IVA. I get calls from companies stating I can write off my debits in one year due to new government legislation. In entering the an IVA they really do want their pound of flesh no more no less. Sure I'll be out of debt come August of next year but the cost to me has been staggering. A lot of this has been the interest accumulated on my debt. Someone made a lot of money out of my debt. I sure didn't.

But you did spend the money & you have avoided bankruptcy which is what these ads refer to.

Quite agree RHB. The companies who cold call, or send you letters out of the blue are to be ignored anyway. They won't save you money. They're just out to make money for themselves and as a reply to them, the second word should be 'off'.

The interest on your debt would have been frozen once you entered the IVA anyway. Once agreed then that would have been frozen.

Surely when you originally borrowed this money you expected to pay all of it back? The IVA has allowed you to pay a lesser amount back - and you are under duty to keep your IP informed of any relevant issues including the submission of a PPI claim. If the bank who you are claiming against are a creditor, your IP will be notified in any event.