PPI & Completed IVA

Sunnyhigh_2

Hi everyone

I apologise now if this is in the wrong forum, new to all this!

I wonder if anyone can clarify / confirm this for me please?

I have looked on the web and found various bits of information which has confused me, which doesn't take much :rotfl:

Anyway, I was in an IVA which was completed in February 2011, so well over 18 months ago. After all the companies advertising regarding claiming PPI I decided to go for it myself after following the advice on here and used the templates. Anyway this morning after letters here there and everywhere, RBS have wrote back to me with an offer of over £9k as they went back on the original loan which they said was consolidated so have given me compensation on this too :T

All I have to do now is sign the acceptance letter, however this states about if in an IVA or owe on the accounts it will be used to take off the debt. Now 2 months after we got the IVA completion certificate, RBS sent a statement to me stating the account was now closed.

So can someone please clarify, am I entitled to all the compensation, do I just get the interest, where do I legally stand if they take all of it??

Thanks in advance for any replies, very much appreciated

Mandy

dunstonh

So can someone please clarify, am I entitled to all the compensation, do I just get the interest, where do I legally stand if they take all of it??

The reason you are getting mixed information is that there is no law or rule that says the money belongs to you. The Govt cleared up the issue with bankruptcy cases earlier in the year but IVA cases are still grey area.

The general position is that if the lender had a debt that was written off or reduced as part of a settlement, they are still allowed to offset the redress paid against the debt that was not repaid. That is actually a logical position and hard to argue against. for example, if you borrowed £10,000 and only repaid £3000 as part of an IVA settlement then the lender is £7000 out of pocket. So, you now asking them to pay you more money when you didnt even pay it if in the first place is pushing it. They could use the redress against that £7000 with any surplus coming to you.

Some people say there are no rules that say they can do that and that you should have the money. However, if you look at the IVA sites you will see that they quote no rules to back that up and most admit that if the bank refuses and digs its heals in then there is nothing you can do.

The FOS allows redress to go against amounts written off, defaults and arrears.

Bretheren

This is just a point of view so it has no legal basis. An IVA is a legal agreement to write off debt can the banks then argue they are owed money they have agreed in court not to persue ?

I accept you should not be able to reclaim money you have not paid out

Interested in other views

[Deleted User]

Bretheren wrote: »

An IVA is a legal agreement to write off debt can the banks then argue they are owed money they have agreed in court not to pursue ?

They only write of debt that cannot or will not be paid and agree not to pursue it. However, the IVA works both ways-if the lender agrees not to pursue money owed shouldn't the defaulter then have no right to redress from an insurance policy linked to this debt?

dunstonh

n IVA is a legal agreement to write off debt can the banks then argue they are owed money they have agreed in court not to persue ?

It is an agreement not to chase the money. It also works both ways.

Since the Govt confirmed that Bankruptcy cases cannot get their money, the lenders have largely treated IVAs in a similar fashion.

Sunnyhigh_2

When I got the loan, I was mis sold the PPI on that loan, I didn't want or need it but could only get the loan if I took it out the fact is this was done well before I had to go for an IVA as my circumstances changed and I could no longer afford the repayments, maybe if they hadn't added the PPI I wouldn't of got myself in a mess in the first place but no one knows what is around the corner.

I also stated in my original post that it was a consolidation loan so RBS have gone back further, so not on the actual account that was in the IVA. If they agreed not to pursue it they wouldn't be paying me out and if the money goes back to them to clear the redress that is fine by me as I thought that would happen anyway, but least I know I was in the right with the claim and I am now debt free and have learnt the hard way.

The IVA insolvency team also told me they may / may not take back the money, but nothing states in my paperwork that I can not pursue my creditors.

[Deleted User]

Sunnyhigh wrote: »

nothing states in my paperwork that I can not pursue my creditors.

No one said you couldn't, it's only Bankrupts who are totally precluded from personally gaining from PPI complaints.
The discussion was moved on by user "Bretheren" who basically questioned the legality of off setting by lenders.

lauram1980

Hi Mandy, I think I can help as I have just been through the exact same.

I too was in an IVA and this was settled in Oct 2011 I made a claim for PPI with the RBS group for a loan I had through the Natwest, when I received my offer I too was baffled by the wording regarding IVA so I rang them, the PPI dept knew nothing about it however the department that dealt with loans in arrears told me that they loan was still open as the company I went through for my IVA had never sent my certificate of satisfation to them, they confirmed that I needed to send this to them with a letter so that they can close the loan and I would then be entitled to both the return for PPI and the compensation, I have just today received my cheques for just short of £5500, I am over the moon, i also had to send my letter of satisfaction the the PPI team.
What was weird was when I chased the arrear dept for confirmation of closure I got a refund on the loan that was in the IVA of £2500, so I think it will be worth giving them a call to make sure they know your IVA has been settled and the fingers crossed you have will a very merry christmas.

Laura

Sunnyhigh_2

lauram1980 wrote: »

Hi Mandy, I think I can help as I have just been through the exact same.

I too was in an IVA and this was settled in Oct 2011 I made a claim for PPI with the RBS group for a loan I had through the Natwest, when I received my offer I too was baffled by the wording regarding IVA so I rang them, the PPI dept knew nothing about it however the department that dealt with loans in arrears told me that they loan was still open as the company I went through for my IVA had never sent my certificate of satisfation to them, they confirmed that I needed to send this to them with a letter so that they can close the loan and I would then be entitled to both the return for PPI and the compensation, I have just today received my cheques for just short of £5500, I am over the moon, i also had to send my letter of satisfaction the the PPI team.
What was weird was when I chased the arrear dept for confirmation of closure I got a refund on the loan that was in the IVA of £2500, so I think it will be worth giving them a call to make sure they know your IVA has been settled and the fingers crossed you have will a very merry christmas.

Laura

Hi Laura

Thank you so much for this information, really appreciate it

I received statements of RBS which closed the account few months after IVA completed and creditors settled, plus by then got the completion certificate. I sent off the forms to them today so we will see what happens. Thanks again for telling me your experience, how long did it take before you got confirmation of the cheques if you don't mind me asking?

Mandy

lauram1980

Morning,

I sent back the signed form to rbs 3wks ago & it took just over 2 wks to get a txt to confirm I was successful and a chq would b issued & with me within 7 days they arrived yesterday.

Laura
X

Sunnyhigh_2

Hi

Just to say to everyone that I got my cheque for the full amount offered through the post this morning, I was quite shocked :eek: as I expected the RBS to take money back for redress, but they haven't and have now closed the complaint, so I am well chuffed.

So good luck to everyone and I hope it works out and thank you so much for all the helpful advice.:T

I'm just waiting to hear from Paragon now which was a loan which was paid off in full and had nothing to do with IVA so fingers crossed :beer:

Thanks again

Mandy