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Urgent advice on IVA and PPI??
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harmony802005
Posts: 257 Forumite
in IVA & DRO
Hi there
I will try and keep this as short as i can,i am asking this for a friend who is in a situation that she doesn't understand so here goes.
My friend had an IVA and it came to the end in July,which you can guess she was excited about but according to them she owed them money for not telling them about overtime she done which she had told them,but thats another story,so now she has to pay back this money which she has been doing. Last month she got a letter saying she could claim PPI,so she filled in the letter and sent it away,come to 2 days ago,when she got a letter saying the money for the PPI is in her bank,she thought great i can now pay off the outstanding money owed to the Iva company,she rang them up today to let them know she had been paid PPI and would like to pay it off the money she owes,the lady said oh u cant do that,the money will go to your IVA but you still have the outstanding to pay,basically the PPI she got is £4000 and the money she owes the IVA is near £4000,so what thay are saying the £4000 will go to the IVA but she will still owe the £4000ish she owed to them in the first place. My question is,is this correct cause that will mean it will be £8000 which is strange as the letter she has in print says she owes £4000,if anyone can help or give any advice that i can pass to my friend i would be so great full,she is really low over this as she is a truthfull person and just feels done over,i hope this makes sense as its confusing for me loan my friend,thank you in advance again for any help x
I will try and keep this as short as i can,i am asking this for a friend who is in a situation that she doesn't understand so here goes.
My friend had an IVA and it came to the end in July,which you can guess she was excited about but according to them she owed them money for not telling them about overtime she done which she had told them,but thats another story,so now she has to pay back this money which she has been doing. Last month she got a letter saying she could claim PPI,so she filled in the letter and sent it away,come to 2 days ago,when she got a letter saying the money for the PPI is in her bank,she thought great i can now pay off the outstanding money owed to the Iva company,she rang them up today to let them know she had been paid PPI and would like to pay it off the money she owes,the lady said oh u cant do that,the money will go to your IVA but you still have the outstanding to pay,basically the PPI she got is £4000 and the money she owes the IVA is near £4000,so what thay are saying the £4000 will go to the IVA but she will still owe the £4000ish she owed to them in the first place. My question is,is this correct cause that will mean it will be £8000 which is strange as the letter she has in print says she owes £4000,if anyone can help or give any advice that i can pass to my friend i would be so great full,she is really low over this as she is a truthfull person and just feels done over,i hope this makes sense as its confusing for me loan my friend,thank you in advance again for any help x
0
Comments
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Your friend will always owe her full amount of debt that she had before she took the IVA until it is complete, it's not complete until she repays the overtime she hasn't paid and she gets her completion certificate, at that point any remaining debt is written off, PPI is classed as an asset and will have to be paid into the IVA pot and will enhance the dividend to creditors, it does not reduce the amount she has to pay unfortunately unless it clears her original debt in full.Aug GC £63.23/£200, Total Savings £00
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