What happens to ppi refund payments while in an IVA

[shroop]

What happens to ppi refund payments while in an IVA even if the ppi is from a refund which is for a loan which is settled and does not form part of the IVA?

[ashb]

I cant really help you as I too have posted here all about the PPI claim I am being asked for and it seems a mushroom of PPI questions is happening, I will post my outcome but I have decided to work with my IVA firm in the hope of keeping a good relationship and maybe they may help me in the last two years left in my IVA, so I dont want to rock the boat but do understand others who are not happy with this recent issue and the high fees being paid. Good luck

[artemischild]

PPI refunds are seen as a windfall and are all paid into the IVA paid and distributed to your creditors to give a higher return.

Arty

[shroop]

Hi guys thanks for your replies In response to you arty would it be the same even if this loan was not part of the IVA and if it is a windfall who should the bank send the money to as this is where I'm havin the problems?

[Niobe]

I believe PPI is an asset, not a windfall.

I think it will be paid towards your IVA but speak to your IP to make sure.

[shroop]

Hi niobe so would the bank have to send a cheque to my IVA practitioner or would they have to send this to me for me to forward on its just they are saying they have the right to use the money to offset the balance of another loan I have with them which forms part of my IVA?

[4kidsnocash]

hi, from what i understand having asked this question PPi is an asset and all monies are payable to your IVA, some companys offset their own debt if the amount is sufficient and send the remaining balance to your IP, others send the payments out directly to your IP if you have been miss -sold PPI,

[Jay H]

My ppi refund was classed as a windfall in my modifications and any windfall under £500 does not have to be payed into my IVA..

[Foggy]

Jay -- I think your IP is in the minority there -- who are they ?

[Niobe]

I believe Cleardebt low you to keep £500 of any PPI claims

[shroop]

Hi foggy my ip is simple debt solutions?

[artemischild]

Sorry I meant assets and not windfall!! You'd think I'd know the inference by now!!! However it does seem each company has different interpretations of what can and cannot be kept!

But usually ppi claims are paid into the iva whether that ppi comes from a loan included in the iva or not.

Arty
*who has had windfall and assessed tattooed onto his forearm!!!

[MelanieGiles]

I've actually got two differing interpretations from two barristers today - just showing how complex the legal arguments are surrounding PPI. Until we as a profession get a definitive view, it is really difficult to advise our clients and comment with true conviction on these forums. The jury is therefore still out ....

[JJSIDE]

My IP has siad that I can keep my refunds ( claims made 3 year after receiving Certificate of Completion ). However, what if he is wrong? What happens if 6 months down the line the legal position has become clear and it is ruled that the refund should have gone into the IVA? Can he then turn round and ask for the money to distribute to the creditors? At the moment the refunds are sat in a savings account - is it prudent to leave them there until things become clearer?

[MelanieGiles]

Get an indemnity from him to say that he has no claim on the PPI either now or in the future.