IVA/PPI Dilemma

Fatboss

Hi,

I have a dilemma and could do with some sound advice.

I'm currently in an IVA (less than two years to go!) and I have been using a company to chase outstanding PPI policies.

One policy has paid out over £6k (yay I hear you shout)
Under the rules of the IVA this money should go into the IVA pot to be split between my creditors.

At the same time the company that are handling my IVA - Simple Debt Solutions has been taken over by a company called Credit Fix. Since then I have had no contact from this new company. I have paid the PPI companies bill and the balance of the PPI payout is sitting in my account. To this day we've not touched a single penny of the money. We have carried living as though that money wasn't there.

It's been months since this money was paid to me and I'm so tempted to use it. My car is falling to bits, my home needs some serious upkeep, my kids needs clothes constantly.

My question is really a moral one. If this new company knows nothing about my PPI payout should I contact them and tell them, or move the money out of my account - put it into my kids savings accounts for example? If I still have it once the IVA is finished then I can spend it how I want right?

I really don't know if I should sit on it and say nothing or let this new company who I am a bit suspicious of know about it.

Some sound advice and logic would be greatly appreciated.

Thanks in advance people.

UpToMyNeckInIt

Be careful.

I totally understand the temptation of course.

Have heard one or two accounts on another IVA forum from new 'Credit Fix' customers, previously with SDS, where the new company are now starting to conduct fresh PPI investigations - regardless of whether or not the customer has done so previously (I guess starting with customers closest to completion, and working backwards).

So when they do in your case (and it probably is a case of 'when', not 'if'), and your bank declares that you have already received a pay-out, that leaves you in a VERY precarious position.

Criminal charges for fraud, as well as failure of your IVA could be very real possibilities.

Is it worth risking that over £6K?

Your best bet is to list the things on your car/around the home that need attention, and negotiate with your IP over how much of this pay-out you can keep to attend to these items.

althas

They will know about it. When you read some of the other forums, IVA completions have been delayed for PPI Claims, PPI payments made AFTER an IVA has completed were still liable to be paid back to the IVA company. In essence, if you had not taked the PPI out, then your debt would have been less in the first place and you would have had less to pay back. Remember, as hard as it may sound, you are paying the companies back less than you borrowed off them as part of the IVA, so they are entitled to this

Be proactive. Call the new company to ask the question, why must you wait for them to contact you. As the poster above said, is it worth risking criminal record for £6k

Fatboss

All those thoughts have gone through my head recently.

A phone call on Monday morning it is.

Thanks for the advice guys, it's very much appreciated.

UpToMyNeckInIt

Fatboss wrote: »

All those thoughts have gone through my head recently.

A phone call on Monday morning it is.

Thanks for the advice guys, it's very much appreciated.

...You know it makes sense.

Do let us know how the negotiations go: If you have a very real need for emergency home/car repairs, there is no reason why your IP should not let you keep some of this payout to, attend to those matters accordingly.

Good luck for Monday.