www.iva.co.uk

A question for the experts

l started an IVA back in March 2005, which completed succesfully in March 2010 with about 42% being paid to the creditors.

Recently i was told that l should look to see if l had PPI on my loans / credit cards with my creditors.

Having contacted First Direct they have confirmed that i did have PPI, they also advised me that l had been miss sold this PPI, and gave me the ammount that l was miss sold.

They asked me for details of my creditors, which l sent them along with a copy of my statement that the IVA has been completed, and all creditors had been satisfied.

I was told that while the IVA was active l had to declare anything extra that l received over £500. And was told that once the IVA was completed that l didn't have to declare anything extra, eg lottery win or gift from family, and anything l receive would be mine to keep.

So I have asked First Direct for the miss sold PPI to be paid to me due to the IVA being completed and the creditors have been paid.

They have replied:
"We ackowledge that the IVA has been completed and discharged, however when you entered into it you asked us to accept less than the full ammount owed and did not mention your PPI complaint at this time."

When l took out the IVA in 2005 l was not aware of what a scandal and disgrace PPI was to become, not one of my creditors brought this up at the IVA meeting.

l have only just in November 2012 started the PPI claim, up till then l didnt know l had it, or that l could claim it on loans dating back to 1998.

First Direct have now withdrawn the offer, and will rigoursly defend any legal proceedings.


As the IVA is completed and discharged, are First Direct legally allowed to keep the miss sold PPI payments, or legally does it have to repay me this money, OR a partial repayment for myself with the remainder being divided between all the creditors ?

Welcome to the forum....sorry I cannot answer your query however I would strongly urge you to contact your IP and seek their advice, along with independant advice from the CAB maybe.

I do know that HSBC and First Direct are one of the worst banks for those in IVA/Banktuptcy situations as they simply close accounts with little or no notice.

I would hope that you can get to the bottom of this and are able to retain the refunds however I have slight niggle that your previous creditors may still be entitled to some of it.....let us know how you get on with it.

Best wishes for 2013 !

My IP was Payplan, l did contact them, they have told me that as far as they are concerned the IVA is completed and closed, so the PPI claim is nothing to do with them.

And they couldn't say for sure what the legal situation is regarding the PPI miss payment.

Hi! I think from reading posts on here that the banks have rights to set off, meaning that they can keep any monies owed! I'm not sure you will win any ppi claim but please keep us posted as to the outcome!

As things stand at the moment there is every chance that, if First Direct are forced to pay the PPI they will simply offset it against what was written off.

There are lots of arguements about whether they can do this against a debt which, technically, no longer exists. However, this has yet to be tested in court -- which could be a lengthy and expensive business.

Some of the info l found through search engine says l'm entitled to the PPI, and some info says l'm not.

Think that l need to get a copy of my original IVA documents to see whether there's anything in it which may give me more details.

Think its called a clawback claws.

l know that if an IVA is active then any PPI payment would need to go into the pot to be divided between the creditors.

As the IVA was completed back in 2010 its not so definitive.

PPI will not be specifically referred to in any proposal, but falls under the collective term of assets. Legal opinion has been taken and the general view (although even counsel's advice does differ) is that the asset existed during the IVA and so is still payable into the old IVA. That said it is often not economically viable to re-open the can of worms.

First Direct are particularly anti - IVA and will probably go to the wire with this one.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Lunnmeister

My IP was Payplan, l did contact them, they have told me that as far as they are concerned the IVA is completed and closed, so the PPI claim is nothing to do with them.

And they couldn't say for sure what the legal situation is regarding the PPI miss payment.

Welcome Lunnmeister. I was also with Payplan at about the same time as you and got the same response. I guess you will have pretty much the same type of proposal, save for the figures, but layout and principle would be the same.

Within my proposal para 1.6 - it states - "All of any assets at the date of these proposals are being excluded from this proposal with the exception of any interest in my residential property as set out above".

I put this to Payplan, ages after my IVA finished, and they confirmed I could act for myself regarding PPI with no redress to them.

You've paid off less than half your debt & are now clear. Maybe that's what you should focus on, might make you feel better in the long run.

A good way to look at it RHB. In fact, it would be considerably less than half the debt paid if you factor in the interest that would have been accruing during the IVA that no longer had to be paid.

What frustrates me right now is that l went through 5 years of an IVA which had a huge impact on my life and having everything financial picked over for 5 years.

Then there's the credit rating issue that still has an impact on my financial side of life.

If the major creditors had declared the miss sold PPI ( which they should have made enquiries about - they are managing to do that now ) my debts would have been substantially reduced and l would have been close to not needing the IVA.

With frozen interest l would have been able to make payments, it would have been a strugle, but possible.

To me all banks should have looked into the PPI issue and find out if there's a miss selling issue and get that into the IVA. That would reduce debts and in some cases mean that an IVA is not needed.

But the banks know that some people wont claim PPI and others have died before a claim is made, so there saving themselves cash, robbing from the poor and giving it out in bonus's to the rich.

The banks know that they miss sold PPI, they know the ammounts, so why does anyone have to go through the claims procedures.

I agree that, in the end, it would actually be cheaper for the banks to simply check files and refund PPI as a matter of course -- put the whole sorry saga behind them once and for all. There was talk that the banks would be writing to customers regarding PPI -- I never had any such communication --- did anyone else ??

That all said --- if I had the PPI reclaimed initially, my debt would have been smaller ( or I would have nad the ability to rack up more -- just delaying the inevitable solution ---- too late to tell.

Yes, with frozen interest you might have been able to just make repayments, but how long would you be struggling along on the bread line? More than 5 years at a guess.

Yes, an IVA has a huge impact on our lives --- the best being leaving us debt free at the end And probably "financially rehabilitated".

As for credit ratings -- I know, without the IVA, mine would have been shot anyway --- and probably a lot longer.

"You pays yer money and takes yer choice!"

But surely not all PPI was missold? Ww were advised to have it on the mortgage but since my ex & I were in stable jobs which allowed sick pay, death benefit we refused it. Others have taken in it & claimed on it.

Not all PPI is missold - I know of at least one other poster who took it out and has claimed on it.

I am the same as RHB - secure job and hubby was retired so never took it out.