We completed out IVA 2 yrs ago. Now been awarded PPI. Is it ours ?

[Bev.lg]

we completed out IVA 2 yrs ago and today we have received a letter from Barclaycard one of our debtors offering us compensation PP1 is it ours or does it still have to go into the IVA

[kallis3]

Hi,

Sometimes Barclaycard will send the money directly to the IP but since you have had your completion letter then I'm not sure.

Hopefully one of our experts will be along to advise.

[KAYKAY]

You say you received a letter from Barclaycard. Did you apply for this? And did you use a claims company, as they may be able to advise you.

[JJSIDE]

This happened to me recently. Barclaycard re-evaluated a previously rejected claim and awarded me 17K compensation. My IVA completed in 2009 but they still insisted on sending the cheque to my former IP. I was lucky, my former IP returned the cheque to Barclaycard saying they no longet had an interest in it - Barclaycard then issued the cheque to me. BC will insist sending the cheque to the IP. The IP will then decide if it still applies to the completed IVA or not.

[Bev.lg]

Thanks for your replies we have not applied for any PPI as this was completed through our IVA we completed in Oct 13 but had to wait a year for our CC this letter came out of the blue it states that if we have a CC they will pay the cheque straight to us. My concern is can we do this as our IVA is complete closed down and we no longer have an IP if we let them send the money to the IP what happens to it where does it go if all creditors have accepted final payments. What are the implications to us if we take it and we shouldn't please help

[Michael Peoples]

The money should be disclosed if sent to you. If your IP does not want it then you can have it but most will look at repaying it to creditors. There are legal cases pending and not total clarity so it may be worth speaking to a solicitor.

[Bev.lg]

Thanks does that mean they reopen the IVA because we have been told that it is closed all creditors agreed payments made we do not have an IP or IVA anymore this is definitely a grey area how do we know what happens to the money

[Michael Peoples]

The money is viewed as an asset of the arrangement and had it been paid when the IVA was still open it would have gone to creditors. However the fact that you have made a full and final means you have an argument if this was not addressed within your IVA.

When we do a F&F we make sure that any financial irregularity claims are still the asset of the IVA and we use the R3 standard terms and conditions. We also get our clients to sign deeds of assignment [DoAs] so we feel there is no ambiguity in our cases. However if there is no DoA in place and your IP is not using R3 T&Cs then perhaps you may have an argument. You would need legal advice on this but see what the IP says first. Some will state they have no further interest and allow you to keep the money especially when the amounts are low and do not justify the costs of reopening a closed IVA.

[Bev.lg]

Surely if you reopen an IVA that will affect our credit again that is unbelievable that this could happen surely final should mean final and what is R3T&C we was in this IVA for seven years they decided to claim back PPI in the last year so it had to be extended when they could of actually done it at the beginning of the plan. I am really getting depressed about this now our life was on hold for so many years we are just getting back on track I feel like telling them to keep the cheque if it is going to cause all of these problems

[Michael Peoples]

Reopening the IVA would only be to distribute the funds to the creditors and should have no affect on your credit file. The R3 T&Cs are the terms and conditions of our proposals and regulatory body. Some firms use Protocol terms and conditions which are different so it may depend on your IP. You should speak to them and see what they say.

[Lisa Thomas]

Hi Bev I have only read your initial post so apologies if I am repeating something but the current case law is that the PI refund belongs to the debtor post closure of the IVA however this is currently being appealed through the Courts system so could be a while before the outcome is known.

[Bev.lg]

Hi Lisa does that mean the IP should be informed or do we accept the cheque but not spend it until the case in May is heard. What is frustrating is that if something is deemed complete how can it be reopened we have our completion certificate which we waited a year for because of PPI claims we was in the IVA for over 7years. Can you explain to me what the CC means because I interpret it as being that the IVA is complete all creditors have received agreed payment and have no claim to anymore of our assets or windfalls is this correct. Also on the CC the IP states she is no longer working on our behalf

[Lisa Thomas]

The CC means the IVA is complete and this is exactly what the case law is arguing over. At the moment the law views it that if the CC has been issued its game over for the IVA creditors/IP and the PPI belongs to the debtor. I would be surprised if Barclay's send the cheque to you. |If you do receive the money I wouldn't spend it until you have clarification on the law otherwise you could find you have to repay it in due course if the appeal is successful.

[Bev.lg]

Hi Lisa
When we received the letter they said they knew we had been in an IVA so they would send the cheques to the IP unless we had a CC in which case if we send them a copy the cheque would come to us. We don't know what to do if it comes straight to us how would anyone know as this is obviously common practice now.

[longslog101]

As case law standas at this very moment in time as Lisa says above the money belongs to you, because the IVA is completed and if you didn't sign anything to say future IVA payments would be sent to creditors.

You could write to them stating that under case law settlement should be sent to you.

Yes it is being appealed but that will be future case low, not present.

so in my opinion it would be in your interests to get this sent to you before the case is heard in court of appeal, because if they find it is due to the IVA then that is new case law from that day forward.

so, if it as me I would write to Barclays quoting the case law in this link and that it has been ruled payment belongs to the debtor (you) and do it sooner rather than later.

googling the case name gives more information too. they may write back saying its being appealed but that's not your issue as it stands law says it's yours !(if you didn't sign anything to say you would pay it over).


http://debtcamel.co.uk/ppi-claims-after-iva/