Finshed IVA and owed PPI ?

Little_Barnett

Hi everyone.
I'll try to keep it brief. Our IVA finished 2 years ago almost and we received our certificate about a year ago. EIC were instructed by our IVA company to claim back PPI on our behalf - not something we wanted to do but apparently is compulsory (?). Anyway. Last week I got a letter from Lloyds Bank after a few phonecalls and questions from them, stating I was to receive a large sum of money. The letter stated I was to receive PPI money as it was mis-sold. This money has been paid into my old Lloyds account (I didn't ask them to, it was automatic). I then received a letter from EIC about the PPI and Lloyds, asking me to sign the letters so they could continue the claim (but I've already received the money!). I'm not even sure I'm entitled to the money. I've read so many different things. Even my IVA paperwork is contradictory. It states we will be entitled to payment yet EIC says we won't be. So who's right?! Grrrrr we just want it to be over with now! Any advice on what to do would be great

-taff

IVAs are a grey area. Some want the money back, some will let you keep it, some will let you keep the interest.

Contact your IP and ask.

DorisTrousers

Your PPI is not money owed to you, it is an asset of the IVA estate. That is the safest assumption to make. You may be fortunate and get to keep it, but that is unlikely.

If you keep that as your default position then anything better than that is a bonus.

Little_Barnett

Thank you for the replies so far.
I have spoken with my bank's PPI reclaims and customer services.
They have said that the money belongs to us, this is why monies were paid directly to my account and not to the reclaims agency or the IVA company.
This is because we have paid what was owed to them - they checked my file. I stated that we have a certificate to state that we were released from our IVA over 2 years ago and that all debts were paid in full. They also said that neither the Reclaims or IVA company can touch this account without me knowing.
It seems we may have a fight on our hands.
I'd like to know who the money would go to if it isn't required by my bank for repayments to them? I'm sure my bank wouldn't want the PPI money they have paid us to be used by the reclaims or IVA for other debtors. Until we know the money isn't going anywhere.
I will keep you posted.

keen_kat

Usually in your IVA there is a clause for PPI claims,and also acquired assets. However, I am sure it only applies for the duration of your IVA and after the certificate of completion is issued you have satisfactorily obliged to the terms and conditions. Basically, if you ultimately hand the money over to the IP who dealt with your IVA they would be obliged to effectively distribute those funds to your creditors. However, if your creditors have been paid 100% back of their debt due, I would hope the IP would say just keep it. Best thing to do is touch base with the firm who dealt with your IVA and say you've received the cash and do they require it... if not, good bonus. they may not be bothered at the agro of distributing it to creditors after all this time. But worth asking them to be honest... however I can't imagine the IP firm are even aware you have received this money anyway!