I have an IVA and also a secured loan. The payment protection insurace on the secured loan is up and i was told by the loan company i could take the money or leave it to reduce the loan amount.
I spoke to DFD and said i would like to offer the sum as a full and final payment, i stated i would soon have to reduce my working hours due to child care and school hours etc. The offer came to 1p less in the £ that what they would expect to get after the 5 years.
DFD dragged their feet for ages asking for this or that bit of paperwork. I sent them everything they needed to know, where the money was coming from, how much and when i had to request the refund.
Still they dragged their feet getting an offer drawn up for the creditors, the time came and i had to request the refund.
DFD again asked for proof of where the money was coming from and said the offer to the creditors was in for reveiw, the just needed to see how much was on the refund.
So i sent them a copy of the letter that came with the cheque, the next day DFD asked when i was paying them the money. I said when/if the Full and Final offer is accepted, they said "No, the money is a windfall and we want it all for the creditors".
I explained that it was money from the secured loan to be offer to the creditors as a F&F and that i had the opertunity to request the money as a refund. Also that by requesting the money i've efectively not paid anything off of the loan for the last 5 years.
I feel mislead by DFD, if i'd known that they would have wanted to take the money as a windfall then i wouldn't have requested a refund.
DFD did seem suprised that the loan company paid the refund, saying that as im in and IVA they should have paid the money into the loan.
I dont think the loan compamy know i was in an IVA, should i inform them i'm in an IVA and return the cheque?
Where do i stand , have i lost the money as a windfall or could i try and get the creditors to accept it a F&F ?
I am afraid that I also believe that this is a windfall, but would have done from day one.
I assume that this is a First Plus loan and that you have not made a claim on the policy over the first five years. This was a perceived perk available to customers as an incentive to entice borrowers to that particular company, but in reality it is just a way of charging more interest for the remainder of the loan.
I do not think that you should ever have been misled that this money would not fall due into the IVA, and can understand your disappointment.
