Refund after IVA Completion

[AD]

Hi all,
I am looking for some advice, and any at all would be truly appreciated.

I completed my IVA in May 2018 using a Full and Final.

Now, today I received a letter stating that a closed Lloyds credit card account in the IVA had been adjusted because of fees that they shouldn't have imposed between 2012 - 2016. This has resulted in ~£500 being applied to the account.

My question is this: Should that money be legally refunded directly to me as due to the terms of the Full and Final, any money as a result of PPI etc after that point (May 2018) is no longer applied to the IVA, and is instead refunded like any other person not in an IVA.

1. They've admitted fault in the letter.
2. They've stated they applied it to a closed account, of which was connected to my financial difficulties at the time and was subsequently part of the IVA, which is now complete.
3. The adjusted amount was not the amount that was on the IVA, so the initial amount owed was ~£500 more.

This was a surprise letter, so either way I am not going to be disappointed, but would appreciate anyone's take on this before I move forward.

Thanks
AD

[Foggy]

I am afraid that this refund should be treated in the same way as PPI refunds post completion and be distributed to your creditors .... unless ... there is, indeed, a condition in your Full and Final, any money as a result of PPI etc after that point (May 2018) is no longer applied to the IVA, and is instead refunded like any other person not in an IVA. I have to say that I have never come across such a term before.

You ask "Should that money be legally refunded directly to me" ...... the above mentioned terms nothwithstanding, No ! As things stand at the moment PPI and similar refunds are due to the completed IVA, as recently confirmed in court.

Now ... all that said .... it could well be that your former IP decides he / she is no longer interested (these things are often uneconomical to pursue, depending on the amounts involved and the time since closure and, in some cases, simple disinterest!)

[AD]

I am afraid that this refund should be treated in the same way as PPI refunds post completion and be distributed to your creditors .... unless ... there is, indeed, a condition in your Full and Final, any money as a result of PPI etc after that point (May 2018) is no longer applied to the IVA, and is instead refunded like any other person not in an IVA. I have to say that I have never come across such a term before.

You ask "Should that money be legally refunded directly to me" ...... the above mentioned terms nothwithstanding, No ! As things stand at the moment PPI and similar refunds are due to the completed IVA, as recently confirmed in court.

Now ... all that said .... it could well be that your former IP decides he / she is no longer interested (these things are often uneconomical to pursue, depending on the amounts involved and the time since closure and, in some cases, simple disinterest!)

Hi Foggy,

Thanks for the reply. The terms of the Full and Final were that it was completely full and final - so much so, that PayPlan did not have to wait for an outcome of a PPI claim that was going on in the final month to get my certificate (I knew there wasn't any PPI money to claim at the time, but the claim had not been completed). I had queried about the PPI claim with PayPlan when waiting to receive the certificate and was told as the PPI would no longer be applied to the account, regardless of outcome, the certificate could be issued quickly.

Lloyds have also not paid the money to the IVA, it was simply taken off the balance owed on the original amount - of which £0 is owed, as of May 2018.

I have decided to take it up with Lloyds and will update this thread when I get a reply - may be useful to others in the future. Fingers crossed,

Thanks,
AD

[chrissy12345]

paragraph 30 of this might assist you:

https://ion.icaew.com/insolvency/b/webl ... n-v-wright

[Foggy]

I am afraid that this refund should be treated in the same way as PPI refunds post completion and be distributed to your creditors .... unless ... there is, indeed, a condition in your Full and Final, any money as a result of PPI etc after that point (May 2018) is no longer applied to the IVA, and is instead refunded like any other person not in an IVA. I have to say that I have never come across such a term before.

You ask "Should that money be legally refunded directly to me" ...... the above mentioned terms nothwithstanding, No ! As things stand at the moment PPI and similar refunds are due to the completed IVA, as recently confirmed in court.

Now ... all that said .... it could well be that your former IP decides he / she is no longer interested (these things are often uneconomical to pursue, depending on the amounts involved and the time since closure and, in some cases, simple disinterest!)

Hi Foggy,

Thanks for the reply. The terms of the Full and Final were that it was completely full and final - so much so, that PayPlan did not have to wait for an outcome of a PPI claim that was going on in the final month to get my certificate (I knew there wasn't any PPI money to claim at the time, but the claim had not been completed). I had queried about the PPI claim with PayPlan when waiting to receive the certificate and was told as the PPI would no longer be applied to the account, regardless of outcome, the certificate could be issued quickly.

Lloyds have also not paid the money to the IVA, it was simply taken off the balance owed on the original amount - of which £0 is owed, as of May 2018.

I have decided to take it up with Lloyds and will update this thread when I get a reply - may be useful to others in the future. Fingers crossed,

Thanks,
AD

That is good to hear --- very often the F&F offer is couched in terms that are neither full nor final !!!