I am currently in an IVA with Aperture (formally Debt Free Direct), which has been an absolute nightmare.. but that's another story. It seem as though they have no idea which way is up and Aperture is completely snowed under with cases that they can't manage, what a joke.
Anyway, I have just asked a claims management company (yes i know), to look into whether I can claim anything back from the PayDay loans that are in the IVA. I have a couple with QuickQuid and MrLender, as well as Provident.
Do you think this money will come back to me (if I am successful in making a claim) or go to the IP like my PPI claims did? I also did a PBA claim, and the money came to me and as it was under £500 my IP miraculously let me keep it.
Please note that when answering, these payday loans are in the IVA, I do owe money on them (ie, they weren't cleared) - however I have been told that as I am in an IVA they don't have a right to offset it against their own debt, so I won't get stung for fees.
First of all -- you will in all likelyhood get nothing. These claims will be treated in the same way as PPI.
I am surprised you got the PBA claim. Either your IP incorrectly treated it as a windfall or he / she is one of the very few that do allow the first £500 of PPI claims and similar to be retained.
Offsetting -- they are not supposed to do it, but some creditors do and they get away with it. So you could end up with a bill for the claims company bill. They could also send the whole defund to Aperture (which is common practice) and, again, you will get the bill for fees.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Ok. Is there any actual rule if the payday loan company choses to keep the money and offset against the amount that I owed them? I had numerous loans, it was only the last couple I got into trouble with.
What is in an IVA that says that they can't just keep the money? Is there a specific paragraph about it in my creditors meeting or proposal?
I would like to be able to stand my ground if this happens. I have already employed the claims company now, so need to be prepared if it goes belly up I guess!
This is the problem, Freddie, there is no actual rule ! PPI arose after the regs were drafted and, though it falls under the umbrella of "after acquired assets" there is no specific rule. HSBC, for one, routinely exploit this and offset debts from refunds, safe in the certainty that no-one will take them to court to get a ruling. The Ombudsman doesn't deal with IVA's but might take an interest from the unfair application of PPI / bank claims etc. angle.
The only arguement you can use -- and really it should be your IP fighting this --- is that the creditors have agreed and are bound by the IVA not to follow up any enforcement or collection action outside of the IVA. To my mind, any creditor that goes against this by off setting should be sanctioned by the IP and the dividends re-calculated to address the balance. The PPI / whatever belongs to all creditors on a pro-rata basis and they are depriving their fellow creditors of their shares.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi there, I had an IVA too and I put in claims with all my payday loans, some of which were in my IVA. All lenders kept a bit to settle the outstanding balances but all refunded me the difference, except for one case. They got wind I was in an IVA, not sure how and then by law they have to ask your IP if they have an interest in any redress claims you have and of course they said yes. So they kept one of them, which was approximately 1200. The rest all came back to me. I have now completed my IVA earlier this year but have one lender who hasn't yet settled and they were part of my IVA. Does anyone know if the lender has the right to keep that money, even though its all finished and there is now no outstanding balance to put it against as it should have been written off now on the basis of the IVA completing earlier this year? I'm going to speak with the Ombudsman tomorrow anyway because I don't agree with them only offering me 75 quid when I paid interest of over 900 quid alone. But someone is asking who's still in an IVA, I'm curious now I'm out of it if they can keep that money still or if anyone knows? I know the IP doesn't have any rights to it anymore as I had that in my paperwork as one of the key points in our favour is they don't keep any money once its settled but the old IP before it transferred to a new company did.
Chantal -- you were lucky in that you kept the refunds and the IVA wasn't terminated. The company that held on to the refund should not have. It should have gone first to the IVA and, if the IP declared no interest, to you.
After the IVA the refunds still belong to the IVA, in the same way as PPI does and the same criteria apply --- the money either goes to the former IP or to you --- the payday lkaon company has no right to offset any of it or to keep it -- the Ombudsman should be able to assist there.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
