i had a full and final settlement accepted in June 2011. My certificate of completion came through in July 2012. In August 2012 i made a PPI claim and today recieved correspondence about a PPI Settlement. In the settlement letter it states that payment will be made to my account and any outstanding debts will be paid off first. The PPI claim relates to a series of linked loans which were included in my IVA. As my IVA is now completed do you know if i can request for the PPI settlement to be sent to me by cheque?
Depending upon the particular terms of your own IVA proposal, it is possible that those monies may belong to the creditors who were bound by the terms of the arrangement and you may have to hand them over to your former Supervisor. The creditors paying the claim may also be able to exercise set-off - so it would be best to check with your former IP to be sure.
I did email my IP (Grant Thornton) before i made my PPI Claim and they sent me an email confirming that if i did recieve any settlement from my PPI claim i would be able to keep it and it would not have to be distributed to my creditors. My IVA was taken out over 5 years ago so the terms of the arrangment didn't include anything about PPI claims and settlements.
My PPI Settlement (from RBS Group) states that that they will make a payment, subject to clearnace of any arrears or indebtedness you may have with the group - as my IVA is now complete does this mean that my arrears and indebtedness are now cleared?
It also go on to say, if you are subject to alternative fiduciary arrangments such as an IVA, any payment we make will be made to an existing account with us - As my IVA is now completed, does this mean that any credit accounts i may have had as part of the IVA, including the loan accounts with RBS, are now classed as closed, or do creditors, such as the RBS group keep them open?
RBS are known to be one of the banks who are seeking to set-off PPI mis-selling claims against debts - so I suspect this may happen in your case. Given that your right to receive the money, existed at the time you entered into your IVA, I suspect that they may have a point - but you should know that these issues are subject to much debate in both legal and insolvency circles at present, and could be subject to a future challenge.
On Monday morning i spoke to RBS Credit Management Services to find out what would happen if i accepted the PPI settlement. I was advised that my current account and linked loan account were still frozen and my last loan was still 'open' so the settlement would be paid to my current account. I explained that my IVA was now closed and that i had a CofC, to which they replied if you send us a copy of the CofC we'll refund the settlement back to you!! I went on to ask why the loan was still open and they said it was because they had not recieved any final paper work from GT. I was quite suprised by this as i had got my final paper work in June, so assumed that all the creditors would too. I then went on to query this with GT and this is what happend; when i recieved my final paperwork from GT i noticed that there was a creditor on the list that i did not recognise, so i queried this with GT and they advised that this creditor had put in a claim against me after my IVA had been approved, and so they were added to my list of creditors. However, GT never contacted me to verify that this was actually one of my creditors, and just added them on. After i raised this with them they then went on to claw money back from this creditor and their dividend was then redistributed it to my creditors, only when this was done did they send out the final paperwork to my creditors.
anyway i faxed a copy of the chairmans report and my CofC and send of my settlement forms, still not really believing that the money would be credited back to me, but a week later i spoke to RBS who confirmed the money had been paid to my current account, and then arrangened for it to be refunded and paid into my account. This happened today! still can't quite belief it but there you go.
There are a lot of posts on this forum about PPI and i agree that the advice is not clear so some clarity sooner rather than later would be incredibly helpful to everyone!
That is an interesting case for us to refer to Sheila. Presumably neither your IP, nor the creditor concerned, belived that the mis-sellng claim was an asset of the IVA?
I did check with GT prior to submitting my PPI claim and they sent me an emailing saying that any settlement would be mine, and RBS just said that I would get a refund as my IVA was paid off. I must say it really wasn't what I was expecting.
