PPI to be used to reduce loan arrears ?

[lloyd]

i have successfully claimed for missold ppi.it was through alliance /leicester on a bank loan .they say as i am in arrears on the loan .after taking out my iva .they said that they are going to use the money to firstly reduce the arrears and if anything leftover i will get it .arrears £3468 -ppi £1451 is this right.ps only 9 more payments to my iva ..

[kazzafunk]

They normally will take the money for arrears. Anything left over will need to be declared to your IP and will possibly have to be paid to the IVA pot.

[lem]

Hi Lloyd, there is another thread about this on here at the moment, not sure if you are the same person as your names are very similar?, but the thread is here if you want to have a read:

http://iva.co.uk/forum/topic.asp?TOPIC_ID=38262

but essentially yes they can use this money to reduce your arrears on the loan, wouldn't you want the debt to be reduced anyway?

[Broke of London]

Yes the A&L are entitled to reduce their debt and the remainder would then probably be introduced to the iva. You may find this is dealt with explicitly in your proposal...it is in mine. x