PPI claims and completion of IVAs

johnb0y

I am reposting this from the PPI reclaim site follwoing advice

I posted a couple of weeks ago, with several success but todays response from Barclays completely threw me. I apologise in advance if someone else has already raised this scenario.

I had a load with Barclays which was started on their advice and compulsory PPI (debt consolidation). I had explained my personal health circumstances and my employment conditions but they were insistant that PPI was taken out.

Unfotunately my debt situation deteriorated in 2006, and I sought an IVA (my employment prevents me from being bankrupt or I would have done that). My mother spotted that I was £80k in debt (all unsecured cards and loans).

The IVA concluded successfully and on schedule in 2011. I wrote to the credit agencies, and also to those companies involved in it including Barclays and provided a copy of the IVA certificate.

March 2012, after advice from various people and a charity I submit PPI misselling claims to various bodies. Most settle and pay. In the forms I am very clear that the agreements ended in an IVA and that it was completed and supplied copies of the certificate.

Today I receive a letter from Barclays who uphold my complaint, but advice me I am not to receive any payment (About £3,700) as I have defaulted debt with them, and they are offsetting this against the £4,100 they believe outstanding.

I called them straight away. But they are adamant, that dispite the loan forming part of the IVA and it being successfully and certified completed, that the money is still due.

I called the company that provided my IVA, Payplan, who were perplexed that they have done this.

I am now pulling together the stuff to go the FSO, but am I right in doing this? I havent got hold of the wrong end of the stick have I? Are banks still able to chase me for the remaining debt even though the IVA was successully completed and discharged?

Are Barclays correct saying they are still entitled to recoup the cash? If so thats damn unfair that they get two bites of the cherry?

Since the call yesterday while pulling the paper work together for the FSO I noticed the figures didn't add up. Of the £4k they said was outstanding i had repaid £2.6k so I called them back. They have now agreed there has been an error and will rexamine and come back with a revised offer in 2 weeks time.

Im dead confused, but determined to see this through.

squiggler_2

Hi Johnboy
I am in exactly the same situation and have forwarded the paperwork to the FSO with my complaint. I know that it will take about a year, but I am willing to wait.
Good luck x

ALIBOBSY

My understanding is the OP is quite right the money should come to you, but the banks will try it on. Have a look at the wording of the letter I bet they word the offer as a "gesture of goodwill" and include the bit about offsetting in any offer they want you to sign lol.

The banks are desparately trying to wriggle out of paying up on PPI anyway they can. The fact is they should have thought more about it when things started off. If they hadn't miss sold PPI on mass and made massive profits at the expense of fairness and morality they wouldn't be in the situation they are now in.

You could write and give them one last chance to cough up or just go straight to the FOS. TBH I would bang it off to the FOS.

Good Luck

Ali x

magpiecottage

ALIBOBSY wrote: »

My understanding is the OP is quite right the money should come to you

If the OP has an outstanding debt to Barclays which he has defaulted on then Barclays almost certainly has the right to set off.

The banks are desparately trying to wriggle out of paying up on PPI anyway they can.

They have upheld the complaint.

The fact is they should have thought more about it when things started off. If they hadn't miss sold PPI on mass and made massive profits at the expense of fairness and morality they wouldn't be in the situation they are now in.

I agree - but if the OP had thought more about it before running up a debt of £80K that (s)he could not sustain then they wouldn't be in the situation they are now in either.

squiggler_2

I'm sorry Magpiecottage, but it's not always as clear cut as someone 'running up debt'.
I have no idea what the OP's situation was but my own was a result of an injury at work, resulting in 4 surgeries, residual disability and loss of earnings. Eventually I had to enter a Trust Deed and sell my house to release equity for the trust. I am still awaiting the results of a personal injury claim, eight years on, but I cannot be reinstated in my home, or reverse the TD.
I'm sure that most people in IVA's or TD's did not plan to default on their debt and most will be able to pinpoint exactly what went wrong. The fact that banks added missold PPI to their loans, often in a lump sum attracting interest, didn't help. In my opinion, those lump sum premiums should never have existed and therefor never have formed part of those debts.
The past eight years have been a nightmare for me, and the TD was certainly no easy way out. Had I been able to claim back PPI a few years ago, I could have avoided the Trust Deed altogether and would still be in my home.