If you are facing message posting problem, please clear your browser cache and cookies. For further assistance and any login problem, please contact us here: https://www.iva.co.uk/contact

Claims regarding miss sold poi to my creditors

Get expert opinion. This is the place for new questions to be posted.
10 posts Page 1 of 1
User avatar
linda
Posts: 1
Joined: Thu May 18, 2017 7:22 pm
by linda » Thu May 18, 2017 7:22 pm
I had an IVA in 2007, funded from the proceeds of selling my house. It was completed in September 2008. I have recently sent claims regarding miss sold poi to my creditors. One of them, said they did owe me £1500, but would keep the money to offset against the debt not paid by the IVA. Is this correct as creditors accepted amounts at time and Iva closed in 2009?
User avatar
Foggy
Forum Expert
Posts: 22375
Joined: Fri Dec 17, 2010 11:14 am
by Foggy » Thu May 18, 2017 7:49 pm
They are not entitled to retain the refund to offset and you might have to refer this to the Ombudsman for a ruling. However the proceeds of the refund are due to be paid to your old IP as they are due to the creditors. That said, it would be up to the former IP to decide whether it was financially worthwhile to dig out old records -- if not he would return the money to you. So, it might not be worth persuing this errant creditor if the money is to be shared among your other creditors in any case.
Linda C
Posts: 4
Joined: Thu May 18, 2017 11:28 pm
by Linda C » Thu May 18, 2017 11:39 pm
So basically you are saying that the creditor should not be able to offset the ppi compensation against his debt? As I understood it, when the IVA is completed, the unpaid part/ percentage of the debt is written off, so there is no debt to offset against?

Can I ask Melanie if an IVA case she had dealt with over 9 years ago was involved in ppi claims, would she, in such a situation, re- open the case and use any ppi compensation awarded to distribute to the creditors?
User avatar
Michael Peoples
Industry Expert
Posts: 14743
Joined: Mon Nov 03, 2008 12:36 pm
by Michael Peoples » Fri May 19, 2017 8:40 am
The PPI would be an asset of the old IVA unless the claims arose post IVA completion. I am not sure if Melanie would reopen an old case from such a long time ago but I suppose it depends on a number of factors.
Linda C
Posts: 4
Joined: Thu May 18, 2017 11:28 pm
by Linda C » Fri May 19, 2017 1:20 pm
That is where I am getting confused. What exactly do you mean by claims arising post Iva completion? The Iva completed in 2008. The accounts closed then, so the ppi related to the lifespan of the c/cards and/ or loan included in the Iva.

And if the IP doesn't want to open the old case, can any ppi refund be paid to the claimant?
User avatar
Foggy
Forum Expert
Posts: 22375
Joined: Fri Dec 17, 2010 11:14 am
by Foggy » Fri May 19, 2017 3:10 pm
If the PPI was in existence during the life of the IVA ( regardless of when claimed) it belongs to the IVA estate. If you took out a loan after the IVA completed and had a PPI claim from that loan it would not come under the IVA and would be yours.

For loans that existed prior to the IVA (whether included in the IVA or not) the IP would decide if it was worth the cost of re-opening everything ( no point in spending £10 to distribute £5). If the IP decided they were not interested the monies would belong to the claimant (former debtor).
Linda C
Posts: 4
Joined: Thu May 18, 2017 11:28 pm
by Linda C » Fri May 19, 2017 4:52 pm
Thanks Foggy.

Any ppi claims I will be making will be for loans and credit cards included in my IVA. So any refunds due will have to be sent to the IP first, and then up to them whether it is worth re-opening the case to redistribute to the creditors.

I have had another letter from Capital One, the company who said there is a refund of £1500 due. They confirmed that they have used the total amount to the account to reduce the debt with them. And that they will inform the IP accordingly. But surely this is wrong, and they should have sent the refund to the IP to redistribute?
User avatar
Foggy
Forum Expert
Posts: 22375
Joined: Fri Dec 17, 2010 11:14 am
by Foggy » Fri May 19, 2017 5:31 pm
Linda C wrote:
Thanks Foggy.

Any ppi claims I will be making will be for loans and credit cards included in my IVA. So any refunds due will have to be sent to the IP first, and then up to them whether it is worth re-opening the case to redistribute to the creditors.

I have had another letter from Capital One, the company who said there is a refund of £1500 due. They confirmed that they have used the total amount to the account to reduce the debt with them. And that they will inform the IP accordingly. But surely this is wrong, and they should have sent the refund to the IP to redistribute?


Yes, they should -- to retain the funds is unfairly favouring themselves over other creditors!
Linda C
Posts: 4
Joined: Thu May 18, 2017 11:28 pm
by Linda C » Fri May 19, 2017 7:51 pm
Exactly what I thought! Perhaps the IP will tell them so, if they have actually written to them.

Do you suggest I should now write to my IP and ask about claiming any mis-sold ppi's?
User avatar
Foggy
Forum Expert
Posts: 22375
Joined: Fri Dec 17, 2010 11:14 am
by Foggy » Fri May 19, 2017 8:04 pm
Linda C wrote:
Exactly what I thought! Perhaps the IP will tell them so, if they have actually written to them.

Do you suggest I should now write to my IP and ask about claiming any mis-sold ppi's?


I would enquire -- as it stands £1500 in this claim might not make opening files economical -- if other claims are in the same order your former IP would just confirm (hopefully) no further interest.
10 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: Bing [Bot] and 5 guests