Completed IVA's and PPI refunds

Get expert opinion. This is the place for new questions to be posted.
9 posts Page 1 of 1
Shadow
Posts: 5
by Shadow » Mon Mar 06, 2017 8:00 pm
I had an IVA which was completed a year early in by my wife using her life savings for a Full & Final Settlement. I received my completion Certificate in 2012. In 2014 one of my creditors contacted me to offer a PPI refund which I accepted. Given the results of the March 2017 Court of Appeal ruling on PPI's how do I stand as regards whether the PPI will have to be refunded?
User avatar
Foggy
Forum Expert
Posts: 23519
Contact
by Foggy » Mon Mar 06, 2017 8:06 pm
It depends on whether your former IP would think it economical to pursue -- digging old files out of the archives. To be honest, if he / she was interested they would have raised their heads above the parapet before now. The reality is that you should not have accepted the refund, but, in defence, I would argue that your IP didn't make any stipulation regarding PPI ( assuming he didn't and no agreement was made in this regard) and you had no knowledge of the ins and outs. Let's face it, even the IP's themselves haven't really had a clue as this farce developed !
Shadow
Posts: 5
by Shadow » Mon Mar 06, 2017 8:46 pm
You are entirely correct that the IP made no mention of PPIs at any point during my IVA. The ex creditor who chased me to accept the PPI stated they had no interest in my IVA and would refund me. Naively, I assumed as the PPI was included in my indebtedness when my IVA was proposed that a Full & Final Settlement would have been considered when my creditors accepted the offer?
User avatar
Foggy
Forum Expert
Posts: 23519
Contact
by Foggy » Mon Mar 06, 2017 8:51 pm
Most people, as , indeed, I used to, would believe a "Full and Final" was actually "Full" and "Final" ! If written as such it could be, but, more often than not it is simply a moratorium on payments until the lump sum is accepted, bringing the IVA to an early conclusion --- it does not, in itself, end any obligations under the arrangement.
Shadow
Posts: 5
by Shadow » Mon Mar 06, 2017 9:16 pm
Thank you for your reply. If this is correct then surely the IP & creditors should have made a stipulation about assets before accepting the F&F?

As I understand it the IP is supposed to ensure that the debtor is informed of his /her liabilities under the IVA. The fact that no mention was made of a potential ongoing liability after a F&F has been made and accepted by the creditors would seem to me to be negligent?
User avatar
Michael Peoples
Industry Expert
Posts: 15165
Contact
by Michael Peoples » Tue Mar 07, 2017 8:55 am
It may be that your IP would have no claim against the PPI anyway as not all types of IVA will have been covered by the Green v Wright case. Personally I would say nothing and worry about it later should it ever be mentioned. The fact that the creditor knew about the IVA and sent the money to you regardless would strengthen any argument you had.
Shadow
Posts: 5
by Shadow » Tue Mar 07, 2017 10:03 am
Michael, thank you for your answer. I'm not overly familiar with insolvency law but wonder how long the IP could argue they could potentially pursue the repayment of the PPI? Is there a limit to the time they can legally pursue this? Is the six year law on debt limitation applicable?
User avatar
Michael Peoples
Industry Expert
Posts: 15165
Contact
by Michael Peoples » Tue Mar 07, 2017 10:23 am
I am no lawyer but in my opinion the six year rule should not apply. I don't think it could be treated as a debt because it was an asset belonging to the IVA. In that event I could see IPs being able to chase recovery going way back but in reality how many if any will bother. The Green v Wright case has cleared up a very grey area but the legal costs have been substantial so I cannot see IP firms chasing people like yourself with no guarantee of success.
Shadow
Posts: 5
by Shadow » Tue Mar 07, 2017 10:52 am
Michael, once again many thanks for your reply.
9 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: Google [Bot] and 20 guests