IVA closures and PPI

Jo*_2

I have an IVA with Grant Thornton and my payments finished a year ago. It was due to be closed by November last year but then they realised that I owed so much in the pound and they had to go back to the creditors to agree that this couldnt be paid. Variations, i think its called? Sorry for the bad explanation.

Last year I received a letter from Egg, who I had a £10k loan with, telling me they think they owe me PPI money and that I should respond to them to claim it. I havent done anything with this so far because of the outstanding IVA.

Last month GT wrote to me saying that if I agree to change my IVA terms and conditions, they will be able to claim all PPI back for me and I will get the interest. I havent responded to this yet.

Today GT told me that the creditors agreed to the variation and that my IVA was closed in January but now they have to complete admin stuff and go back to the creditors to agree to closure. I asked about claiming PPI and whether or not their recent letter applied to me because I was in the closure process. They said it does apply because my creditors wont agree to closure if they think they can get some PPI back from me.

Is this correct? I naively assumed that once I had my IVA closure certificate, any money from PPI would be all mine.

UpToMyNeckInIt

Jo, you appear to be one of many caught up in this legal mess, ie: IVA, or ex-iva customers claiming PPI.

GT, being the largest IVA provider take the view that PPI is a pre-existing asset (ie: it is an undisclosed asset that has existed prior to your IVA), and therefore can be claimed to increase creditor dividend, even after issue of the completion cert.

A lot of GT completions are being held up until PPI investigations are completed.

Other IVA firms take the view that, as you say, once the CC has been issued, it's all yours.

I fear that it will take a 'test case' in the courts (ie: a customer successfully suing their IVA company).

Best research this issue further if you think you have a case for keeping the money.

Sorry if this is not the advice you were looking for - doubtless I've got all this to come as my IVA progresses.

Good luck.

Vikipollard

I'm in a similar position Jo, and with GT.

I actually don't believe I was missold PPI, but was told by their claims company that if I didn't sign the forms my IVA would not be closed. Incensed, I range GT who confirmed that this was true.

I've signed the forms, and the variation ones which you mention. The latter, I am told, may allow the closure without waiting for the PPI issue to be resolved, but I may well have chewed through my tongue in cheek before that actually happens.

I don't think you can avoid letting them do their thing ~ whether you actually see any of the interest is a moot point as the letter states "net of costs", which I'm expecting will miraculously exceed the value of the interest.

Good luck ~ hope you do actually receive your certificate soon. If I was you I'd just accept that you won't see the money - the chances are Egg would pay it to your IP anyway.

adyj73

I got the forms from payplan and crossed out my name and inserted 'Payplan' where it said who was responsible for any of the PPI companies fees. They have since acted on the form so are now legally bound by this so any interest arising from my (zero) PPI claim is legally mine. All completely pointless as I never took PPI as saw it as a total con since time began but it makes me chuckle the PPI sharks are wasting their time chasing what does not exist :-)

Edit - just to say this is not a dig at Payplan who have been totally marvellous, but I can't stand the whole PPI industry that has sprung up bearing in mind you can do it for free anyway

Knight_rider_2

I have just recently had my IVA completed. And final balance agreed by creditors. My IVA company then sent me forms about Ppi and a new variation. I rang up and argued that my letter of final agreement had been sorted and I did not want to go through more variations and just wanted my certificate. After more argument he let slip that this is not a legal requirement and you don't have to go through Ppi claims. I replied no. Then after a week they started ringing me again about the same thing. I told them I had replied no and just wanted them to get on with things. The woman on the phone eventually said we need to sign the forms saying we had said no and then our completion certificate would be issued straight away. I think it pays to be confident with these companies and don't let them bully you into hanging on for more money. At the end of the day all they want is more money from you to line their pockets and you only get a small slice of the money. Plus it's a 3rd party who they use to get the money back.

creditguy54

Guys. I think surely you should all do the honorable thing and do whatever you can to get funds in and pay extra back to your creditors who you owe money to and did not pay back (for whatever reason) in the first place. As these refunds are actually hidden assets at the time of your IVAs. All these bad debts and over lending/borrowing have contributed significantly to the mess we are now in.