Iva query

markmark1985

Hi all I was wondering if anyone could help me.

I've been under an IVA since November 2012. Last month I was successful in winning my PPI claim that I made against some of the creditors that I'm in the process of paying back. This amounted to just under 4k. I was so happy and thought this could really help towards paying off my IVA, maybe save some for the future, and maybe even finish it sooner than the usual length of 5 years.
That was until today. After speaking to my IVA company, they said they would be taking 100% of my PPI win. Thats fair enough, until I asked the next question of does this mean my IVA will be finished sooner?! Their reply was no it don't work like that. They tried to explain why but the amount of jargon used is always the same, and to be honest my interlect isn't on quite the same level as theirs!

Can anyone please clearly explain why my IVA won't be finished sooner, and the fact I'm seeing 0% of MY money?

Thankyou

FiatFan_2

yes unfortunately this is true. depending on which company you are with, some lucky people are allowed to keep the 8% statutory interest others will take 100% of the payout.

If I remember rightly, PPI is classed as an after acquired asset which means anything greater than £500 belongs to the iva (extra to agreed amounts) where the IP gets a percentage and the creditors receive the balance. Quite often the PPI is paid direct to the IP so they'll distribute it directly.

Whilst some will regard this as unfair, we have to remember that the creditors are wiping off a percentage of our debt and any additional payments (PPI, overtime etc) just helps lessen the blow to them.

markmark1985

Appreciate your reply!

I wouldn't be at all concerned not seeing a penny of my ppi win providing this meant it helped to finish off my iva sooner. That's the part I don't quite understand.

Curlybing

Mark I was also stung the same way you were, although DFD didn't explain themselves to me at all and I spent hours on the phone explaining why i was mis-sold the PPI. Had I of known I would of told them to whistle and get their own info! Some companies let you keep 8% interest but not DFD :mad:

markmark1985

The info they've provided throughout the course of my iva has been minimal at best. Yeah they helped remove the strain at the beginning but when things such as like them failing to meet the time frame of doing my first annual review is quite simply, poor. What are these fees going towards? Are they for their bonuses which no doubt they will get to keep and see 100%? It seems like the iva was the way to go about things but starting to wonder there are better companies out there than the one I'm with

Curlybing

Out of interest, are you with Debtfree direct? I submitted my paperwork for my second annual review on 8th November and still haven't heard from them. If it were the other way around they would be down on us like a ton of bricks!

FiatFan_2

I got caught in the same way which I've already ranted about on here before :rotfl: In simple terms the payout meant that instead of repaying 40% of my debt, I'd repay 50%.

My IP, SC claimed 15% of the PPI retained and don't part with the 8% unfortunately. Same with declared overtime, when over the 10% margin and I pay 50% to the IP, he claims 15% before distributing the rest to creditors.

It took a good while for me to accept the full amount being paid over, but realistically had we still been in debt, we'd never have seen a penny anyway.

markmark1985

I'm with kingsgate. Seemed really helpful at first but not so much now. I find it strange that I never hear from them, maybe once in a blue moon, but I suppose no news is good news! I spoke to them yesterday, asked them how much I paid so far and if it wasn't for my good maths they forgot to take into account all the overtime pay I've gave them. They also apologised for not doing mg review in the given time frame, but coincidentally they gave me a call yesterday afternoon to do my review! Guessing they forgot about mine and found it in the bottom draw of their desk or something after I reminded them!!