www.iva.co.uk

Hiya, can anyone help? We finished our IVA a year ago with a full and final settlement paid by my parents, quite a bit earlier than the IVA was due to finish and have our completion certificate. We have put in a claim recently for PPI as we didn't even realise we had a choice regarding the PPI on some of our credit cards. Anyway today we get a letter from one of them offering a refund but it says that as we are under an IVA they will contact our IP and apply the payment as directed by them. What will happen? Will the IP not let us have it? We were with The IVA Advice bureau. Also we have had another response from another company saying they accept we were mis-sold the PPI but won't give us any refund because they wrote off payments with the IVA. Any advise will be really appreciated. Thank you.

most companies that have written off debt in an IVA will offset any ppi claims against this write off. Whilst this does seem strange its yet to be challenged in the courts,and would no doubt prove very costly to do.

Paul

If the companies had claims in your IVa then I think they can offset the money against what was written off

Thanks for the reply.

So we wouldt get any of the PPI claim?

This say's otherwise

http://www.ivaadviceforum.co.uk/ivablog ... vice-forum

Have these companies who have offered to repay PPI written off any of your debt? If so then I would think they are entitled to the PPI money, as this would have been an asset in the IVA (I think). On a personal note, I would not claim PPI from anyone who had written off some of my debt.

I personally do not agree as I wouldn't of got into so much debt with the creditors if I had realised I didn't have to pay the PPI. My monthly payments would have been much more manageable and I probably wouldn't have needed the IVA. That's just my opinion though.

Fair comment, hope you get sorted soon.

I don't know wantmylifeback ..... if I had smaller loans I would simply have accumulated more of them until I reached critical point ... any PPI would have just got me there with fewer creditors !!!

I agree. I've never had PPI but just kept borrowing until I could borrow no more.

If you say your PPI contributed to increasing your debt, it is surely logical that reclaiming them reduces the debt you accumulated?

I'm not sure the argument of keeping the PPI claim as 'compensation' for getting yourself in debt holds much weight...the ones who lost out financially by you being in debt are your creditors

Oh well looks like the greedy bankers will get their money back then. Shame my parents can't get a part of it considering we owe them and are trying our hardest to pay them back the money they paid into the IVA. I feel they should get some too!

The greedy bankers who mis-sold the PPI won't be getting their money back. Those creditor who mis-sold PPI will have their claims adjusted to the correct level and those who didn't mis-sell PPI will receive a greater dividend to reduce the write off.

When you run into difficulties making payments to the iva, it is best to speak to your IP rather than take on new debt.

That is exactly what we did do, unfortunately continuing with the IVA under our change of circumstance was not an option. We still have to pay my parents back, it is not new debt, it is the same debt but it has moved to my parents whose terms are more flexible.

The "sods law" of your situation is that the ppi claims have come too late. Had the claims been made prior to your parents offering to help you out then the money would have gone to the IVA then, thus helping to reduce your debt to the creditors. The possible result of that could have been a lower F&F figure to borrow from your parents.

The loan from your parents would be classed as new debt under the terms of your iva even though it is being used to repay existing debt. And so I would be very surprised of your IP allowed you to preference your parents' loan at the expense of creditors in the iva.

I know it sounds unfair particularly as your parents support is making it possible for you to achieve the expected dividend for creditors and now they will get more. Actually that gives me an idea...

Perhaps you could offer the claim as a F&F as your I&E without parental help shows the iva is unsustainable?? Then, if accepted, you can close the iva and repay your parents.