www.iva.co.uk

evening,

have just been speaking to a family member who is also in an IVA, and he informs me that his IVA company has stated that any PPI payments made to them do not come off the original debt amount?!?

basically I believe his IVA was originally for £30k, and hes been paying £170 for a year for 2 years and he has also had approx. £25k in PPI's paid directly to his IVA company.

what does this all mean please, as they seem to be very vague with him when he called them today?

Thanks

very strange. I would imagine that they can only claim thru all means of money to the total debt.

My understanding is that anything paid in, PPI, inheritance, lottery wins etc., would all go towards payment of the debt, but not counted as part of the payments...so he would still pay is 170pm until the end of the IVA or total amount paid.

I aren't an expert though, just another member.

thanks for the reply, this is what I thought? I thought that you would never have to pay more than 100% of the original debt, plus interest plus IP fees?

hopefully someone can clarify as it seems he could be close to paying as he has another ppi looming for another £8k

Dont forget if a claims firm has been used there would have been fees,also there is like to be a fee to the IVA company - so out of 25K PPI total, there is likely to have been 8K in fees deducted(approx) - which in total with payments made come to 22K (approx)

If you pay 100% of total debts plus interest and fees then the IVA will conclude. Bear in mind though the chunk that will have been taken from that PPI in fees

Thanks for the help. I'll pass your info onto him. Thanks again.