More PPI refund when on anIVA

moogfoot

I have been on a IVA for twelve months this Febuary, all ok so far. I have tried claiming PPI several times in the past but got nowhere, however, recently I looked into it again, having found a whole load of account numbers that I had no record of, sent of my complaint about being miss-sold etc etc.I did this myself, I did not use a reclaiming company, thus saving myself 25%.
Well today in the post came the latest reply, after looking through all my history they have agreed several were miss-sold and offered, in total £14,700.
This is being forwarded to my IVA practitioner, as I knew it would.
I owed a total of £28,000 when I started my IVA and pay £220 per month.
What will the outcome of this be?
Will I be able to do a final settlement and end this, or, will it get swallowed up and I'll still be paying £220 for the next four years, or, will it reduce either my time left or my monthly payment?

Foxy-Stoat_3

It will go into your IVA which will increase the dividend that your creditors will receive at the end. Your payments wont change nor will your term.

UpToMyNeckInIt

We sign up to an IVA undertaking to repay as much of our original debt as we can afford to do. (+ your IP's fees if you receive enough of a windfall).

I believe that normally, a F&F has to be offered by a third party. So I doubt your offer would be accepted. Still worth posing the question to your IP though, just in case. Maybe make out you are about to lose your job etc.

Based on your figures however: £220pcm x 60 Months = £13,200. (Original min. dividend to be repaid inc. IP fees). (assuming that the equity release clause or 12 Mth extension is not applicable).

Add your £12,495 (your £14,700 windfall, less the 15% share that may be taken by your IP for 'additional realisations' - check your IVA for this clause), brings your repaid total to £20,795. (I have factored in your IP's standard fees - I've assumed £5,000 for the sake of arguement).

In reality therefore, I suspect your IVA will go full-term, and you will have repaid your creditors £0.74 for every pound you owed give or take, the rest going in IPs fees.

A high dividend for sure, but at least interest etc. on the debts has been frozen for the 5 year period.

Double check the maths, but that seems about right I think.

techno1029

Maybe worth looking into your IVA small print a little further as I think you are entitled to the interest element of your PPI so you may get a little payment back.

moogfoot

UpToMyNeckInIt wrote: »

We sign up to an IVA undertaking to repay as much of our original debt as we can afford to do. (+ your IP's fees if you receive enough of a windfall).

I believe that normally, a F&F has to be offered by a third party. So I doubt your offer would be accepted. Still worth posing the question to your IP though, just in case. Maybe make out you are about to lose your job etc.

Based on your figures however: £220pcm x 60 Months = £13,200. (Original min. dividend to be repaid inc. IP fees). (assuming that the equity release clause or 12 Mth extension is not applicable).

Add your £12,495 (your £14,700 windfall, less the 15% share that may be taken by your IP for 'additional realisations' - check your IVA for this clause), brings your repaid total to £20,795. (I have factored in your IP's standard fees - I've assumed £5,000 for the sake of arguement).

In reality therefore, I suspect your IVA will go full-term, and you will have repaid your creditors £0.74 for every pound you owed give or take, the rest going in IPs fees.

A high dividend for sure, but at least interest etc. on the debts has been frozen for the 5 year period.

Double check the maths, but that seems about right I think.

Spoke to my IVA people today and they said exactly the same thing, although they said to put in a request for f&f as I have nothing to lose, not holding my breath...