PPI After IVA

bigscottd · 13 January 2016 at 10:36PM

I need some advise if there is anybody out there that can help.

My wife was in IVA and was completed in August 2013 and we have the certificate of completion.

She kept on being badgered as we all do regarding claiming back her PPI so she decided to go through with it and it has come to light that she had PPI on a couple of accounts what were not in the IVA and she has been awarded £4000 from the Halifax and a cheque would be issued to her with 5 working days.
3 days later she was contacted by Halifax and was told as she was in a IVA that they would contact Debt Free Direct regarding the payment and this was over a month ago.
Last week she had a call from the Halifax saying they had tried to contact DFD via email and on the phone and nobody has come back the them so they have to close the case and they would transfer the money direct into her bank.
We have since spoken to DFD who keep saying that they want the money as they say its a asset and the money must be paid to her creditors but I see how they can demand this after the IVA in complete and all debts are have been written off.
I have done research on the internet and regarding the matter and im aware the there is a clause on some certificates regarding PPI but ive been through her's and all I can see under assets section is that she agrees not to pursue PPI claims against the creditors in the arrangement.

She has spoken to DFD tonight and they are still telling her she needs to pay them and when she asks why she just get told because you have to and they cant give her a explanation.

Anybody can help i would really appreciate any advise you might be able to offer.

sourcrates · 14 January 2016 at 1:30AM

Hi,
You Should not of spoken to DFD !!!!!

If the IVA has completed, then your contractual obligations under the IVA have completed and it cannot be resurrected. Therefore the money received from PPI ought to be yours.

The "windfall clause" only applies to arrangements still in force.

DFD are wrong.

I would seek some proffecional advice though, try national debt line, the number is in my signature.

phil2580 · 22 January 2016 at 5:38PM

You may find this ruling in the High Court interesting.

Basically it says that the High Court has held that compensation payments for missold payment protection insurance ("PPI") received after the successful completion of an IVA, and crucially, the issue of a "Certificate of Completion" are payable to the debtor and not to the former IVA creditors, because the terms of the IVA released the debtor from all debts on the issue of this certificate.

So basically, it all comes down to your Ts and Cs.

R3 Standard Condition 9(2) [Effect of Completion Certificate]
"...upon the issue by the Supervisor of a Completion Certificate, the Debtor shall be released from all Debts which are subject to the Arrangement."

IVA Forum Standard Condition 6(2) (IVA Protocol)
"...when the Supervisor has issued a completion certificate, you will be released from all debts that are subject to the arrangement."

As your wife has been issued with a Certificate of Completion, it would appear as though these clauses (or equivalent) would apply, and DFD have no claim to the PPI refund...it might be worth referring them to this ruling.

DorisTrousers · 25 January 2016 at 1:35PM

That judgement is currently under appeal, and therefore the previous status quo applies, which is that the PPI is captured.

If you paid it over to DFD then they will just hold it until the appeal has been ruled upon. It the appeal is upheld then the money, less costs, should go to creditors.

If the appeal is rejected, then the money should come back to you.

By all means fight your corner in the meantime, but if you are thinking of holding on to it and not paying any over then I would caution against spending any of the money, just in case the appeal is upheld.

Concerned75 · 31 January 2016 at 11:42AM

Hi.
Something very similar happened to me. I'm still in an IVA, but the bank misold me £4,000 in PPI I was unwise to sign the Form of acceptance, as the money went straight back to the bank via the IVA. Fortunately, each PPI claim was separate on different accounts and one of the signed documents got lost in the post, so they still owe me half of it. As these claims last for 6 years, I will wait until my IVA completes, then check with a credit score company if everything is finialsed and closed, before I resign for the rest of my PPI. Not every credit score company updates your records without a formal written request.
Might be worth you doing the same before you contact any of the financial parties involved. Just a thought....

Rmeek · 7 February 2016 at 1:38AM

We had this exact same situation after being discharged from a F&F interlocking IVA. We basically just had to send a copy of our discharging certificate to the Halifax to prove that we were effectively no longer under the IVA and discharged from the insolvency register.This was in 2011 after the IVA. As soon as we did that they sent us our cheque. In fact only a few weeks ago they wrote again to advise that I had paid one loan off with another and as the original loan had PPI I had paid the interest off on that and was entitled to further compensation! The original award was almost £2k and the further award was just over £400. The original loans were only a few hundred each as they had both been paid off very quickly. Hope you sort it anyway. DFD are talking rubbish! They have no claim to the money as the IVA is settled to the terms of their agreement with you and the creditors as per your F&F.

PPI After IVA

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