Using PPI to offer a lump sum towards the repayment of my debts ?

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celia
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by celia » Thu Nov 09, 2017 10:26 am
I was sold an IVA in August. It was accepted with payments starting at the end of October but I will probably not be able to face the next repayments. The IVA providers are asking me to agree to let a solicitors' firm check whether I am owned PPI. I had much rather claim it myself without intermediary and use that money (if any) to offer a lump sum toward the repayment of my debts. How can I do that? Would I have to get out of the IVA? I do not want to give any creditor money owed to me when I could use it to clear my situation. Thanks.
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kallis3
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by kallis3 » Thu Nov 09, 2017 10:40 am
Hi,

Unfortunately any PPI claimed will need to be paid across to your creditors. If you claim it yourself you will be liable for fees if you use a company.

Why can't you make your payments?
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Foggy
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by Foggy » Thu Nov 09, 2017 10:50 am
Now that you have entered an IVA any PPI -- even if you cancel the IVA now -- will belong to your creditors and you cannot use it to make an offer.
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Lisa Thomas
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by Lisa Thomas » Thu Nov 09, 2017 11:37 am
What has happened/changed to make you unable to meet your commitments so soon to starting?
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MerlinL14
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by MerlinL14 » Fri Nov 10, 2017 10:36 am
Unfortunately any monies you claim from PPI will never be seen as 'yours', even if you personally make the claims and miss out the middle men's 30-40% grab. PPI is deemed as owing to your creditors. Your IP would not even entertain the notion that it could be used as a F&F sum. It may go a long way to increasing the creditors premium or best case shortening the period you pay the IVA, but it would be something substantial to achieve that scenario. It seems unfair but reality is we chose an IVA as the best way forward to, a. Get out of debt, b. Make the best effort to pay back the most amount to our creditors.
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celia
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by celia » Fri Nov 10, 2017 11:51 am
Thank you. I never thought the PPI money would actually be mine but I was hoping it could be used for the lump sum...
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MerlinL14
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by MerlinL14 » Fri Nov 10, 2017 1:57 pm
celia wrote:
Thank you. I never thought the PPI money would actually be mine but I was hoping it could be used for the lump sum...

I know, it would be best case and 'we' all had the reality check of PPI claims being seen as a figure on a letter, but whisked away without even seeing a penny of it. I did all my own claims so it really was disheartening for me as the figure shown was significantly higher than if I had used a claims company. It is a bitter sweet pill to swallow and took time for it to be OK in my mind.
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Foggy
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by Foggy » Fri Nov 10, 2017 2:17 pm
MerlinL14 wrote:
celia wrote:
Thank you. I never thought the PPI money would actually be mine but I was hoping it could be used for the lump sum...

I know, it would be best case and 'we' all had the reality check of PPI claims being seen as a figure on a letter, but whisked away without even seeing a penny of it. I did all my own claims so it really was disheartening for me as the figure shown was significantly higher than if I had used a claims company. It is a bitter sweet pill to swallow and took time for it to be OK in my mind.



The way I look at it is that I "lost" £8,000 in PPI refunds -- but, on the other hand, I had over £30,000 of debt written off (not to mention the interest I would have been paying), so I still came out ahead of the game.
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