can a ppi compensation payment be retrospectively considered for a discharged IVA?

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HMRCBFAIR
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by HMRCBFAIR » Tue Feb 27, 2018 11:21 am
Hi
Didn't expect to be back but here i am still being stressed by the the letters I V and A

IVA completed mid last year - taken off the insolvency register in Jan. Approx 95% repaid to creditors.

During the life o the IVA I made a PPI claim on insurance taken out on a very old credit card - can barely remember the details - I don't think this card was live/involved directly in the IVA but it is hard to be sure as the names changed and taken over by collections cos etc etc.

However, during the lifetime of the IVA the claim was rejected and that was that. Lat last year RBS wrote to me and said that the govt had changed something and now this claim might be upheld....did i want to reapply - so... nothing to be lost off i go..... Finally after many holding letters telling me nothing much, comes a letter 2 weeks ago saying i am entitled to £10k compensation!

If i want to accept "sign here" and return and the cash will be mine in 28 days. Happy days.

Today i ring RBS to be told that all IVA relevant claims are on hold indefinitely !!! GRRRRR

Is this legal?

Are they now going to wriggle out of paying or is it possible it will be rerouted into the IVA even ?

Help please ?!

Whatever the rights and wrongs its pretty lame treatment by the bank .
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kallis3
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by kallis3 » Tue Feb 27, 2018 11:36 am
It will be due to your IVA unfortunately.
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HMRCBFAIR
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by HMRCBFAIR » Tue Feb 27, 2018 11:47 am
Ty - but that's it - no room whatsoever? Is it not a windfall with 50/50?
How much reasonably can the supervisor cream off?
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kallis3
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by kallis3 » Tue Feb 27, 2018 12:06 pm
Unless you can pay back 100p in the pound plus fees it is an asset due to your creditors.
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HMRCBFAIR
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by HMRCBFAIR » Tue Feb 27, 2018 12:12 pm
so i haven't "completed" the IVA at all then.
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Foggy
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by Foggy » Tue Feb 27, 2018 12:13 pm
It is not a windfall - it is an asset and 100% is due to the former creditors. But, as you will not owe more than the original debt, plus fees and possible statutory interest, some of it might come back to you as an overpayment.

In theory all PPI refunds should be paid by the bank to your IP -- who will decide the fate of the funds --- sometimes it is just not economically viable to dig out the old files and re-open contact with former creditors and,mtimes, the IP just isn't interested (!) and will return the money to you. However, I have seen instances reported whereby RBS (One of the largest perpetrators of the PPI scandal) have retained the refunds to offset their own debts --- which is contrary to the IVA agreement and borderline illegal. Unfortunately the Financial Ombudsman, who is dealing with PPI, has no jurisdiction with regard to PPI, but, according to how this pans out, you should consider making some noise in his direction as the bank continue to avoid their responsibilities and should be brought to account.
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HMRCBFAIR
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by HMRCBFAIR » Tue Feb 27, 2018 12:21 pm
i'm just struggling with the logic (as well as seeing £10k disappear - it certainly felt like a windfall)

You seem to be saying that i am never free of the IVA? until 100% paid
This was not an "asset" during the lifetime of the IVA it has become one after the event.
What if i now get a payrise? do we recalculate the whole IVA again as to what i can now afford?
I
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Foggy
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by Foggy » Tue Feb 27, 2018 1:02 pm
HMRCBFAIR wrote:
i'm just struggling with the logic (as well as seeing £10k disappear - it certainly felt like a windfall)

You seem to be saying that i am never free of the IVA? until 100% paid
This was not an "asset" during the lifetime of the IVA it has become one after the event.
What if i now get a payrise? do we recalculate the whole IVA again as to what i can now afford?
I



No -- you are missing the point :-) -- Payrises since completion, or lottery wins, or somesuch happened after the completion date and are, therfore, not captured by the IVA as was. PPI, even though you didn't know about it, did exist during the IVA ---- call it a windfall if you like, but 100% of qualifying windfalls are payable too -- I used to take issue with this, viewing it as nothing more than a "potential asset" until such time as it was agreed and paid, but 7 years of looking at various arguements have changed my view.

Your only tie to the old IVA is PPI ( which ends next autumn anyway ) or if you inherited anything during the course of the IVA and don't yet know about it.
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HMRCBFAIR
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by HMRCBFAIR » Tue Feb 27, 2018 1:23 pm
Thanks - i'm not missing the point. But probably i'm still wrong.

I'm not saying the PPI was a non realised asset or just dormant during the PPI so now it's ok - we tried to obtain it at that time it was worthless.

What i am saying is that the authorities said it was worthless during the IVA and that fact had full disclosure to all relevant parties.

Now they have changed their mind post IVA - so why is it not a windfall? I see no difference in this event to me now getting a payrise/bonus etc why would these then not be relevant to the IVA now - what makes PPI special that they can change their mind and then consider it?
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Foggy
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by Foggy » Tue Feb 27, 2018 1:42 pm
HMRCBFAIR wrote:
Thanks - i'm not missing the point. But probably i'm still wrong.

I'm not saying the PPI was a non realised asset or just dormant during the PPI so now it's ok - we tried to obtain it at that time it was worthless.

What i am saying is that the authorities said it was worthless during the IVA and that fact had full disclosure to all relevant parties.

Now they have changed their mind post IVA - so why is it not a windfall? I see no difference in this event to me now getting a payrise/bonus etc why would these then not be relevant to the IVA now - what makes PPI special that they can change their mind and then consider it?



If you get a payrise now -- it is after the event. PPI was during the event. Yes, the lender declared your application for PPI as worthless ... as it turns out, in error (or, more likely, in an attempt to simply avoid repaying. Which continues!)

I apologise, I am unable to explain it in any other way.
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kallis3
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by kallis3 » Tue Feb 27, 2018 2:06 pm
Agree with Foggy - it is an asset and has to be paid across whether you agree or not.
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HMRCBFAIR
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by HMRCBFAIR » Thu Mar 15, 2018 3:27 pm
Well what do you know! it only goes to show that if you want 3 opinions ask 2 experts.
.......Turns out the Supervisor kinda agrees with me........ he says

"The PPI was not part of the IVA proposal, the after- acquired property aspect has expired"..... I can keep the money.

So now i just have to get it out of those bunch of bankers RBS......

I'm not spending it just yet but i am back to contemplating.
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Foggy
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by Foggy » Thu Mar 15, 2018 4:23 pm
HMRCBFAIR wrote:
Well what do you know! it only goes to show that if you want 3 opinions ask 2 experts.
.......Turns out the Supervisor kinda agrees with me........ he says

"The PPI was not part of the IVA proposal, the after- acquired property aspect has expired"..... I can keep the money.

So now i just have to get it out of those bunch of bankers RBS......

I'm not spending it just yet but i am back to contemplating.


We can only repeat the usual situation, as decided in earlier court cases. IP's discretion can cover a multitude of sins (not always , as in this case, in your favour). In your position I would accept what your IP is saying even though it is in contravention of recent court rulings -- but can be covered by the remark I made in one of my above responses ... bottom line, for whatever reason, he isn't interested ! RBS might, however, take a different tack. Good luck.
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kallis3
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by kallis3 » Thu Mar 15, 2018 5:28 pm
Agree with Foggy - we were not allowed to try and claim after speaking to a well known claims firm because of our IVA.
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