IVA and PPI - please help

ryan182dj

Hi all,

I'm after some help or advice on behalf of my partner who has recently successfully finished paying off an IVA.

In the last couple months of the IVA, (March this year) the company running the IVA contacted my partner claiming that it was likely she was mis-sold PPI and that they could recover some sort of compensation on her behalf. They sent some forms and told her to fill them in and return them. She made her last payment to the IVA in May this year.

Now here's the thing:

She has just received a letter from the credit company (8th July) who mis-sold the PPI stating that she is entitled to £3700 compensation but because she is still in an IVA, that cheque has been sent to the the IVA company!!!

She is understandably very angry and contacted the IVA company.
They said that it was because:

1 - the IVA was still running (even though she had finished all payments) because THEY extended it for 6 months to finalise account admin.

2 - and also because the date of the claim (rather than the payment) was while the IVA was live. They state any 'windfalls' of £500 or more that my partner received while inside the IVA must be paid over to them.


To me this is despicable and is sheer profiteering from the IVA company. It seems like a well orchestrated system to extract further monies.

How can the IVA company extend the IVA and claim that any money received in that time is still theirs if payments were fully met??
She finished her payments and upheld her end of the contract. If they can't administrate their end in time that's not her fault. Any money received after the final payment should be rightfully hers. What's to stop them keeping extending it!??! The date the money *would* have been received WOULD have been outside the IVA

ALSO: It should not be classed as a 'windfall' - PPI insurance mis-sold to her (which would have never paid out) was essentially taken (stolen) and is rightfully hers all along.


Can anyone help?

Many thanks

Ryan

trudij

ryan182dj wrote: »

Hi all,

She has just received a letter from the credit company (8th July) who mis-sold the PPI stating that she is entitled to £3700 compensation but because she is still in an IVA, that cheque has been sent to the the IVA company!!!

She is understandably very angry and contacted the IVA company.
They said that it was because:

1 - the IVA was still running (even though she had finished all payments) because THEY extended it for 6 months to finalise account admin.

2 - and also because the date of the claim (rather than the payment) was while the IVA was live. They state any 'windfalls' of £500 or more that my partner received while inside the IVA must be paid over to them.


To me this is despicable and is sheer profiteering from the IVA company. It seems like a well orchestrated system to extract further monies.

How can the IVA company extend the IVA and claim that any money received in that time is still theirs if payments were fully met??
She finished her payments and upheld her end of the contract. If they can't administrate their end in time that's not her fault. Any money received after the final payment should be rightfully hers. What's to stop them keeping extending it!??! The date the money *would* have been received WOULD have been outside the IVA

ALSO: It should not be classed as a 'windfall' - PPI insurance mis-sold to her (which would have never paid out) was essentially taken (stolen) and is rightfully hers all along.


Can anyone help?

Many thanks

Ryan

Dont know the answer to the first question - the IVA company are the ones who have prolonged things to finalise the paperwork - not that your gf has missed payments or anything like that?? Id be quite firm with them about this bit. If she was paying her over-earnings over the following year, it could be that?

In most IPs terms and conditions there is the windfall clause - I had similar with my IP, anything over £500 and i had to pay half of it to them to be split between my creditors. Didnt happen all that often, but when I reclaimed my credit card things, I think I ended up handing over about £400 (though I was still WAY better off than I had been out of it - so I was quite glad about that!!) the only creditor who didnt do things as they should was egg - who were nothing but awful all the way through the 5 years. (and paid their bits into themselves - which my IP sorted at the end, cos they arent allowed preferential treatment, and by paying themselves back the money they should have given me,they had given themselves preferential treatment!)

So - they are right with the windfall clause, its something that you sign up for with most IPs right at the start, but the keeping things back if she was up to date when her final payment went through definately needs looking into IMO

good luck !!

FoggyBrain_2

Hi Ryan, this company wouldn't be HB would it? If so, there has been discussion on this elswhere, where they claim they were instructed by the creditors to recovers such sums if possible, for the benefit of the creditors. Rightly or wrongly, this is what they are trying to do. In the case of HB they were over zealous ( in my opinion) in practically bullying their client into making a claim. If it isn't in the proposal they don't have to do it -- however, this is water under the bridge .....

As for timing, the IVA does not complete with the final payment. It completes when the IP issues a certificate of completion and it will be stated in the proposal that this can take up to a maximum of 6 months. I would imagine the lodging of the PPI claim delayed this, as there were then unresolved matters to be dealt with ( the claim itself).

Finally, just a thing to ponder on .... and the sums could go either way here .... how much of the total debt was written off by the creditors? If it was more than the PPI repayment your partner is still up on the deal ... leaving out the 5 years of interest which also did not have to be paid.