IVA and PPI premium cashback ?

fazerneil

We are in an IVA.
We have received a payment from the PPI on a separate loan that equates to the premium of the PPI as we have not claimed in the first five years.
My two questions:
1. As our original loan (not covered under IVA) continues for another 14 years, are we legally entitled to use all or part of this money to pay into the loan to reduce repayments of the loan as surely it is not windfall but money that if we had would have been used to increase the loan payments in the first place thus reducing the amount of time we would pay it off.
2. If not legally entitiled but we do it anyway, what could IVA company do who assured us when we took out the IVA they are working for us, not the creditors?
Thanks in advance for any advice that can be given!

FoggyBrain_2

Hi. Technically this is an asset of the IVA and payable into it in full.

If you don't pay this in the firm could fail your IVA or extend it to make up the shortfall.

Play on words here ---- when the company are drawing up the proposal, they act as Nominee and are effectively on your side. Once the IVA is accepted they become Supervisor and are there to see that the terms of the IVA are stuck to by both sides. But it is their duty to maximise the return to the creditors.

The ethos behind an IVA is not, as some companies like to portray, a device to reduce your debt or the responsibility to pay. It is to enable you to pay back as much as you can afford over the term whilst being freed from interest, charges and harrassment.