We received our Completion Certificate in February after a 6 year IVA. Our final dividend was 90.35% Last week I was contacted by the company that was looking into PPI claims on behalf of the IVA company that we were awarded a redress of over £20k from First Direct. I contacted the IVA company and they said that after the payment to the Claim Company (24% of the claim) and the 20% tax on the 8% interest and the extra 9.65% to pay off the IVA in full, the rest (over £10k) would be paid to us! I asked the IVA Company if there was any statutory interest to pay on the IVA and they said no, just the 9.65% My question is: Does the 8% interest rule apply to all IVAs?
I don't think it applies all of the time. It could be that the 8% you mentioned is that.
Lovely ending and enjoy spending that money!!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The requirement to pay statutory interest on the debt, in the event that fees and full debt have been covered is not a given requirement in every case. In my proposal statutory interest was specifically excluded. In some cases it is forgiven at the creditors agreement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sun Jun 16, 2019 7:36 amkallis3 wrote:
I don't think it applies all of the time. It could be that the 8% you mentioned is that.
Lovely ending and enjoy spending that money!!
Thanks! No, the 8% I mentioned was the interest on the PPI refund. The 20% tax should be paid by (in this case) First Direct before it's paid over. Apparently this was because people were being paid refunds and not paying the tax on the interest. HMRC instructed the banks etc. to pay the tax before they paid the refund to ensure that they got it!
