Advice appreciated! IVA/DMP/refund issue

jaydecay78

Hi all,

First time poster here and hoping for some advice/guidance really.

Basically I am 3yrs into an IVA via Payplan. Prior to this for 2yrs I was in a debt management plan.

On Monday I received an email from the DMP part of Payplan asking I get in touch as they had some money to refund me.

Somewhat surprised I phoned them back (assuming we were talking a few ££). They have told me that they have received £3400 back from RBS relating to my DMP and asked me for my bank details.

Not wanting to get into strife with my IVA I asked whether I needed to declare this money – at which point they clammed up and said they’d get back to me (apparently they didn’t know I was in an IVA via them!)

I spent a large part of Tuesday phoning and chasing only for the DMP team to refer me to the IVA team and vice versa.
I then received another email from the DMP team telling me to contact them ASAP as they had £650 to refund to me.

Somewhat confused I phoned them and it came to light they had received 2 amounts back from RBS. I mentioned that I was awaiting a reply regarding the £3400 but was told this was a separate issue and I was entitled to this money and they arranged the refund to me there and then.

Today (Wednesday) I had a missed call from the DMP team and when I phoned them I was told the money had been passed back from the IVA team and they could refund. Then in the next breathe the lady said she wanted to confirm one more thing then would get back to me.

4hrs later I receive an email saying the monies have been passed to the IVA team and will be distributed amongst my creditors. To make matters worse I then received a phone call from the IVA team stating the £650 should have never been refunded and I will have to pay the money back.

At this stage I am spitting feathers as have gone from them paying me the full amount to nothing! I argued that having read the proposals of my IVA it doesn’t cover issues such as this and that I wasn’t happy.

A little while later the IVA team phoned me again to say they have spoken to the IP and he has said I can keep the £650 but the £3400 will be given to my creditors.

Does anyone know if this is correct? My argument is that it is money I had already paid and the creditors refunded! Surely if I can keep the smaller amount I have a claim for the larger refund too?
Payplan are saying that it is classed as “after acquired assets” or a windfall .

My IVA proposal which was 30 pages long required me to sign on page 11 – and upto this point windfalls or assets aren’t mentioned – they are mentioned in a separate section – starting on page 20 - entitled “standard conditions for IVAs” But again I would argue that that its not a windfall as is my money I had already handed over.

Apologies for the long rambling essay but the last few days have been stressful to say the least! And to make matters worse my nan passed away on Tuesday so my focus hasn’t been 100%

James

DorisTrousers

I am surprised they say it was after acquired, the logical thing to say is that it was and is a pre existing asset. As such, it is captured and needs to go to the IVA.


What you don't have you won't miss, and the £650 you have been allowed to keep is actually a good result for you, because if it was a windfall, which it isn't, then it is over £500 and should also really have gone into "the pot" as it were.

Max_Maxwell

You've done well out of this. The fact you've been given any of the money whilst in an active IVA is remarkable. I would say 'thank you' and walk away.

Make sure you get written confirmation of your right to keep it.

sourcrates

Unfortunately it is regarded as a "windfall" and as its come from the same company your IVA is with, you are stuffed im afraid, if it had come from another source unconnected with your IVA, then you could have quietly hidden it away in a separate account and no body would be any the wiser , I would just be glad they have allowed you to keep one of the payments, as by rights that should have gone to your creditors as well.