Why should creditors benefit from PPI claims they had nothing to do with ?

[Ann.z]

We were approached by think2claim part of think money group whilst now in an ivA with freeman jones part of the group also. We started the process and have been awarded £7,363. Which we are told gets split between all creditors is this correct and if so why does is not come off the creditor the refund has come from? Why should other creditors benefit from something they have nothing to do with, personally I wish we hadn't gone down this route!

[Adam Davies]

Hi and welcome

It is seen as an asset of your IVA so spread between all creditors, even if the payment was offset against the creditor concerned it will make no difference to the payments or term of your IVA

Regards

[plasticdaft]

The creditor may well offset the ppi against their own debt but as Andy says it matters not.

Paul

[tinks81]

I will never understand the PPI issue. Companies are supposedly being penalised, legally, for the mis-selling of it, yet they are then given in back just because we are/have been in an IVA. How can that be right???? Where's the punishment there? How is it classed as an asset when we paid it out in the first place? Ok some may say that had it not been sold that money would have gone to pay off our debts, but how many people would have actually done that? And our debts would not have been as large had we not paid it in the first place! Would love to legally challenge this but, as the companies know, us little folk don't have the means to do this.

[martinw]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by tinks81

I will never understand the PPI issue. Companies are supposedly being penalised, legally, for the mis-selling of it, yet they are then given in back just because we are/have been in an IVA. How can that be right???? Where's the punishment there?

In an IVA the creditor more often than not doesn't get back all of the money owed, additionally even if 100p/£ is reached and statutory interest is paid this is likely to be less then would have been repaid at a commercial rate.

Part of the punishment is also that debts not included in the IVA (because they were repaid), can also have the PPI reclaimed (OK you don't get the money but neither does the creditor that sold PPI)

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by tinks81
How is it classed as an asset when we paid it out in the first place?

Is a car or house an asset(albeit one that was excluded in most proposals) ? That was/is paid out by us.

Martin

[tinks81]

A car/house were chosen to be bought by us & not mis-sold.

[andrea1968]

Often we borrow from Peter to pay Paul, so individual debts are accrued through these means. I would think ppi spread amongst all creditors is a fair solution, this would be especially favourable if you ever look at making a full and final offer as they have all had a piece of the pie!!!

[Adam Davies]

Hi

It could be argued that had PPI not been included in the original repayments the debtor may not have had to carry on borrowing as much money prior to the IVA, so any refund post IVA should be spread between all creditors including those that did not include PPI

Regards

[scoobydooby]

as a slight aside (I'm sure th

if someone in IVA receives money relating to a PPI claim for a loan not connected to the IVA (i.e. it was taken out and finished before the IVA started) does the money have to paid into the IVA?

[Adam Davies]

Hi

Yes it does as it is an asset

Regards

[Kevin.hm]

If i had PPI owed i would gladly ensure it went back to pay off my IVA debt - but unfortunately not all of the PPI comes your way though to do this.
If you use one of the third parties organisations appointed by the IVA providers - they will claim a % of the recovered PPI claim monies for acting on your behalf - then the remainder of the PPI is paid into the IVA pot for the creditors - but before this is dished out to them I am advised the IVA provider will also take a % of it also based on their % fee they are allowed to claim for receipts received.
Bit cosy at best this set up with the IVA providers and their appointed third party recovery teams.

If you are able - reclaim the PPI back yourself and cut out the 3rd party.

[scoobydooby]

ok, thanks

[luluj]

Claim it yourself will still incur costs and won't necessarily realise any more than going through your IVA company .... You will still need to hand it across to your IP to administer the payments to creditors and their fees etc. Equally some companies will pay direct to your IP too!

[Sarah Jolly]

Hi Ann.z

You've already received some good information and advice from the forum. PPI often causes a lot of frustration and confusion.

If you'd like any help or clarification on anything from either Think2Claim or Freeman Jones please don't hesitate to get in touch with me at
info@FreemanJones.co.uk with your reference.

Thank you
Sarah

[Mutley1968]

Sorry to shoehorn my way in

i am also in the middle of dealing with PPI claims through Think2Claim via Freeman Jones.

What happens about the 8% Statutory Interest i keep hearing about, would i receive that ?

I have a couple that were not included in my original list of creditors that my IVA deals with, if i am succesful in claiming money back, do i get to keep any of that ?

I was also told that if one of my initial creditors had sold on the debt, then there was a chance i would not have to pay it back to them as they no longer own it and the new owners have no entitlement as they are not who i owe money to.

i was also told that because my IVA was started before 2012, any money returned via a PPI claim would only go to the company that i claimed against and not the big pot, is this true ?


Erm, last question.
If i succesfully win money back from one of my creditors, but they offset it against my debt to them, how is the fee paid ?
i understand the no win no fee agreement, but i am not sure how it works if the creditor does not actually hand anything over to my IP, to be honest this was not mentioned as a possibility during my initial conversations on the phone about starting PPI claims and it has me a bit worried as i obviously, thanks to my IVA have no spare money to pay fees.

any answers or help with any of the above would be grately appreciated.

Thanks
Mutley