www.iva.co.uk

I completed my IVA a year ago and I paid off my IVA in full 100p/£...I have since lodged a PI claim and yesterday got the response that I was owed £20k but the lender will keep back £8.6k, leaving an offer of £11.4k.

Can they do this? The debt agreed at the offset of the IVA has been paid in full...I will ber asking the question to the company concerned and can only think they will say that this is the interest that was owed at the time the IVA was taken out?

Somehow this doesn't seem right, does this mean that other creditors will have hidden pots of money I owe them without realising it???

your advice please woudl be much appreciated. do I accept the £11.4k or challenge for the £8.6k??

Hi

An interesting post, if you returned 100p in the £ how can more money be owed ? I would log a complaint with the banking ombudsman if you do not receive a suitable response from the creditor concerned

Regards

Thank you Andy...much appreciated. I can not speak to the bank as I am unable to remember my phone password...account closed nearly 6 yrs ago!!! However the company who administered my iva have confirmed the same and are happy to speak to the bank concerned.....letter is drafted and being sent by special delivery today......many thanks again

The banks response is......when yr iva was agreed the bank was confirmed the bank as a creditor, would be repaid a % the outstanding debt.........yr iva did not clear yr debt but merely confirmed that we would not actively pursue any amount outstanding. The amount is still outstanding (£8.6k), it is 'the banks' policy to offset any redress owed against the outstanding debt......

So basically they're saying I'm not debt free,....makes a mockery of the iva process if this is the case.....very dispondent and confused....

When you say you paid your debt 'in full - 100p/pound, do you mean you paid the full amount actually OWED, or do you mean you paid your agreed IVA payments 100%?
if you paid the total actual debt in full, then how can you have a balance?
but if you paid what was agreed in the IVA, which was not 100% of the original debt, then some of the money would have been written off at the completion of your IVA, and this will be why they are trying to offset against their balance.
still a lot of controversy though on whether they can do this

I'm thinking along the same lines as Dawnyosf. Did you repay 100% of your IVA or 100% of your debt?

When an IVA doesn't clear 100% of the debt, the debt doesn't follow you around for payment and have a claim on future monies earned or gained BUT assets which pre-existed the IVA (such as PPI claims) are still owed to the IVA estate in payment of the debt.

I paid off 100 % of the iva debt......the bank agreed the debt to be paid at the iva, I will check the legal aspects in my iva contract.....i should have been made aware what the full debt was and that if at a later date there was claim against the creditor they had the right to claw back the difference!!

Over 50% of the iva debt was made up of the accumulated ppi payments...without interest applied...

I cannot see any reasons for your bank withholding money in this regard. What do they say the money is being withheld for?

I thought that legally any amounts outstanding in an IVA were written off and that debt no longer exists! As said above if this is not the case then it makes a mockery out of the IVA process! Also does this mean that if in the future you applied to that creditor for finance they would say no cos you still owe monies!!

I'm reading this as 100% of agreed repayment at IVA creditor meeting not 100% of original debt....in which case when the IVA closed the balance of original debt should have been written off and any future windfalls exempt from past creditors....however I am thinking ppi refunds probably fall under a different set of conditions...I know when we put a claim in last year we had to declare IVA details and company as they were checking if we had paid all debt back in full before they would pay out.

Will be interested to hear end result of this..hope you get to keep the full amount.

The poster says she paid 100p in the £. Us this correct Helen?

But surely if it is an asset of the IVA then the bank shud pay it to the IP for distribution to all creditors not just pay off their own debt!!

If the debts have been in paid in full then anything gained after that should go to the poster.

Mel - I was reading the poster's comments ......"I paid off 100 % of the iva debt......the bank agreed the debt to be paid at the iva"

I appreciate that if 100% paid back of original debt then nothing due ....

Hopefully the poster will update us when she gets the answers to put our curious minds at rest !

It appears that most creditors do have the right of set-off Muggins, so the bank may well be acting correctly in this case.