Receiving PPI refund when on IVA

Jam73

I just had a replied from one of my creditor offering me a PPI refund.
Will they give it to me directly?

DevCoder

You will need to send the PPI claim to your iva supervisor for possible distribution to your creditors unless you explicitly excluded the ppi claim from your iva at inception.

Jam73

Thanks for your suggestion. What will happen if I didn't inform my insolvency advisor, will the money be given to me?

chrisfurbs

It will be reported to the MLA by the PPI claim company so in the short term you are OK but it will catch up on you and be a criminal offence Max term 7 Years

Apples2

Jam73 wrote: »

will the money be given to me?

Fortunately the ppi refund will go directly toward your defaulted account(s). You are very unlikely to see a penny of it.

The stories of fat cheques dropping through the letterbox are from people who repaid their debts as per the agreement.

Brains64

Apples2 wrote: »

Fortunately the ppi refund will go directly toward your defaulted account(s). You are very unlikely to see a penny of it.

The stories of fat cheques dropping through the letterbox are from people who repaid their debts as per the agreement.

Another possibility is that if there's any left over after the debts have been covered with this PPI compensation the OP might get the remaining if they don't owe any other charges, fees or anything, not sure how much compensation the OP is getting and the level of debt so only they will be able to work that out.

One thing I think is rather a big cheek on the part of high street bank lenders in particular and the way they use any PPI compensation to cover arrears etc, is that a lot of the PPI charges put on peoples credit cards and loans will have contributed significantly to them getting in arrears in the first place, personally speaking, I think as part of PPI compensation, banks should be forced to (as opposed to them being allowed to use their discretion) write arrears off in cases where it's not a huge amount and still pay a customer the full compensation, considering how much they have been deceiving customers, it's the least they should be doing.

DevCoder

Jam73 wrote: »

Thanks for your suggestion. What will happen if I didn't inform my insolvency advisor, will the money be given to me?

As other posters have stated plus your IVA will be considered null and void and you will get the full force of your creditors wrath

UpToMyNeckInIt

Jam73 wrote: »

I just had a replied from one of my creditor offering me a PPI refund.
Will they give it to me directly?

Hi Jam73,

Did you claim your own PPI? or did you use a PPI claim firm? or did your IVA company 'make' you claim for PPI via them (or their nominate claim firm)? Reason I ask, is that some customers hand over the PPI refund, then get the bill from their reclaim company.

The whole PPI thing for those of us in IVAs is a legal mess frankly. My understanding however (based on a consensus of opinions from IPs posting on other forums), is as follows:

If you took out a loan with PPI - ever (even if its an old loan not in your IVA, or a current one that is), your IP will usually want to claim for mis-sold PPI on your behalf to attempt to increase creditor dividend (it seems to be a big thing at the moment).

In an IVA, we agree to pay back as much of the original debt as possible (plus IP fees etc), not just 5-6 Years x monthly payment. Any subsequent PPI refunds recent or old, are a pre-existing realisable asset, and will therefore go into the IVA, thus reducing your debt and/or go towards paying fees.

I have even heard of IVA customers being pursued for PPI refunds to go into their IVA AFTER they have had their certificate of completion.

In addition to the good advice already posted here: My advice - tread carefully, and run it past your IP.

Best of luck.

Jam73

Thank you very much to all those who replied. Just to answer your questions, I didn't use any 3rd party company, knowing so well how shark they are in charging customers!!! I just want to ask, how do they pay out the compensation while you're on IVA, do they give it to my IVA supervisor or to me?

UpToMyNeckInIt

Not entirely sure, but I would have thought that if you applied directly, I guess the funds will go to you. As per the terms of your IVA, it is then down to you to let your IP know about this 'windfall'.

Good luck if you think you can 'hide' it!!!

Jam73

Can anyone give me advice with this:
I just filed a PPI claim from HSBC loan, this loan was fully paid since 2003!
I was into IVA 2008, and HSBC was not included on my creditors under IVA. I just received a replied from HSBC that I was not eligible for PPI refund because I'm under IVA, why am I not eligible for a refund, where I already paid the loan in full? Please give me some advices. Thanks!