Ppi & IVA

[rob14973]

Hi

 

I am trying to get some information for a friend regarding a ppi and a cva.

 

First of all my friend fell into financial difficulty nearly 5 years ago in entered into a cva which has a few more payments before its finished.

 

However 8 weeks ago she asked for her ppi money back from barclays who were one of her debters before she entered the cva.

 

They have wrote back this week with the amount they want to refund which is a large 5 figure sum but have said they will give the money to the firm handling her cva.

 

As i said earlier she has now only got a few payments left on the cva and i wondering whats the best course of action for her to take as she has just been made redundant and could do with that money until she finds another job.

 

regards

 

rob FOR CVA READ IVA - dx

[ims21]

Loan or credit card?

[rob14973]

Hi For a loan

[ims21]

Hi

 

So this cva is dealing with some limited company debts?

 

Is the loan we are talking about part of the company or is it a personal loan that is completely distinct from the company stuff?

 

ims

[rob14973]

Ooooops sorry i meant an IVA Personal loan.

[ims21]

Ah right

 

Ok

 

Typically if a person is in an IVA and a successful PPI claim is made then the refund is treated as windfall and is placed with the administrator of the IVA for the benefit of all creditors.

 

I would think that the only way you might have an alternative result is if you can show hardship but you would need to contact the IVA administrator to discuss this.

 

ims

[rob14973]

First of all she has not accepted the refund yet so would it be possible for her to pay off the remainder of her iva 3 payments left and then accept the ppi offer later as she has 6 month to accept there offer. Surely the bank would not be able to give it to the administrator if the iva had been paid up?

 

Rob

[ims21]

I'm not sure TBH

 

I guess that when once formally released from an IVA then anything coming in is hers but its only a guess.

 

Also as this loan is in the IVA, Barclays may smell a rat after the event and start complaining that they haven't received the full amount that was technically due and try and cover their loss using the ppi refund.

 

I'll have a think and see if I can come up with anything but you'll have to bear with me.

 

ims

[rob14973]

thanks ims i appreciate the help.

[ims21]

All I can say is that when an IVA is completed anything that comes in after it is "signed off" is the claimants.

 

If the offer was accepted prior to the IVA ending, the money would still help as it would go into the "pot" for distribution.

 

Maybe have a word with the IVA administrator.

 

ims

[rob14973]

Thanks for the reply ims (bit late i know) Anyway a quick update on this and anyones help would be appreciated. This Iva was finished in october 2012 which was backed up by a letter from the company who set up the Iva arrangement Grant Thorton. In this letter they stated within 6 months a certificate of completion would be sent. However after all this time they still have not received this certificate.

 

In october 2013 a year later they have received a letter from Halifax claiming they still owe 12k. They also claim Grant Thornton never paid a penny to them. need some urgent advice please as this cant be right?

 

I will also mention if you have read the thread that no ppi money has been claimed.

[sequenci]

Hi there has your friend spoken to GT? Either GT have made an error or the IVA has failed for non-compliance.

 

Does your friend appear on the insonvency register, if so what does it say: http://www.insolvencydirect.bis.gov.uk/eiir/ ?

[rob14973]

Thanks for the reply.

 

No they have not spoken to GT yet. However i have clicked the link and the status is set to current with a footnote which reads as follows.

 

Individual Voluntary Arrangements will remain visible while they are Current, and for a period of 3 months after the receipt of notice of the revocation order, full implementation or termination of the agreement.

 

The IVA was paid up in full and they have a letter from GT stating the final payment has been made.

 

If GT have made a mistake who stands to the debt?

 

Thanks

 

Rob

[sequenci]

I think they'll need to clarify what is happening with GT. Thought it may be fully paid up, it *could* remain open whilst there are outstanding actions - such as a PPI reclaim. The Insolvency Service have a decent complaints gateway, if GT are being a pain consider complaining.

[rob14973]

Yeah im going to get them to give them a call and we will see what happens.

 

Thanks

 

Rob

[sequenci]

Keep us posted

[rob14973]

OK GT phoned and are keeping it opened untill ppi is claimed. Basically was threatened if you want closure on the IVA then you must claim your PPI. If you want the threatening letters from banks etc claiming you still owe money then claim ppi and they will stop.

 

How can you force somebody to claim ppi.

 

Is this worth a complaint ?

 

Regards

 

Rob

[Consumer dude]

Yes, I think its worth a complaint if you feel under pressure from the IVA company. They no doubt want you to claim PPI now so they can get hold of a percentage of it. Can you remember if the PPI was part of the loan that was presented to the IVA company at the start..

[rob14973]

Hi Dude

 

Yes i think so as far as i know.