IVA and PPI claims

jmm78

Hi all,

I have recently finished paying off my IVA although I am still held under its t&C's for another 7 months. My original paperwork states that any sums of money over £500 must be declared to my financial supervisor. I have recently made a PPI claim and have received a letter offering me just over £1000 compensation. The letter states that they will be contacting my IVA company to see how they want the money distributed. Does this mean that I should be able to keep £500 of the claim and the remainder go to my IVA? Any help would be very much appreciated!:o

DebtCompanyInsider

Not necessarily I'm afraid jmm78. It's quite likely that they could require the full amount to be paid over to help repay your creditors. I hope I'm wrong though.

Confused_Girly

It depends on the loan provider. I had a PPI claim come through from Lloyds for £1000 and they sent the cheque to me, so i got to keep £500 of it and had to give £500 to the IVA people. Although, i had another £1000 PPI Claim from Tesco Loans, and they sent me a letter stating that they would take it off the balance i owe them as my loan was still in arrears. You'd think that this would then lower your monthly payments as you've paid a grand off the money that you owe them!! But unfortunately it doesnt!!!
I've got 2 and a half years left on this IVA crap, i just wish there was another way out of it. The restrictions are ridiculous. You'd think they would let you have any bonuses from your works, but you've got to give them 50% of any extra additional payments you have wherever it is that the extra payments come from...