Help please with lump sum payment after F&F Settlement

emmafudge

Hi
My partner had a iva with DFD and he negotiated last year a f&f settlement with DFD which I paid for him on his behalf. He started talking to DFD around september but DFD were very slow and in the end a lady in complaints sorted everything out and a creditors meeting was arranged. The F&F was accepted on the 7th Feb and I paid the full amount into the bank on the 8th Feb. The completion certificate has not yet been received and DFD have told us it would take between 8-10 weeks to issue.

In January my partner received a letter from Firstplus (a copy sent to DFD) with a form to complete to reclaim PPI under the no claims in five years policy. He sent the completed form back to F/plus and we received a letter back saying that his claim could not be processed until the outcome of a pending court action against Norton by my partner, who sold the PPI, was concluded. Then on the 9th March, we received a letter saying that the claim had been processed - although court action is still pending - and a cheque would be sent under separate cover. We called F/Plus today to chase the cheque to be told that it had been paid to my partners IVA Account.

He spoke to DFD and they seem reluctant to repay my partner. They are going to ask an IP whether he can have the money although we get the impression he wont get it. F/Plus said that they would investigate as we should have been informed that the payment would be made to DFD and get back to us.

Now we have paid in excess of what the original creditors agreed. We are extremely angry as the money used in the F&F would now have been better utilised against the mortgage.

Has anybody got any ideas if DFD can withold this money? Is there anything I can do?

Thanks in anticipation
Karen

FoggyBrain_2

Basically, the PPI repayment is due to the creditors as a windfall under the terms of the IVA. Even though the paymant was made after F&F settlement, it was known about before hand. Yes, DFD were remiss in not telling you this, but are, technically, in the right. There is a very good chance that your IP will not have any discretion over this, as he is as bound by the terms of the IVA as you are.

In any event I would insist that you speak personally to the IP, and not to an office assistant who has to keep asking the IP for the answers. If they do not co-operate ask for details of their regulator as you wish to make a formal complaint regarding the lack of advice given by your IP.