IVA coming to an end please help

markusuk1

Hi,


My IVA is due to end in December with a further 4 month after that to cover the increase in pay I had which I am all fine with but here is the thing... I recently received a PPI refund payment from one of the debts included in my IVA to the sum of £4100 or there about which basically would write off any remaining debt early and because of this they are now claiming statutory interest which means I owe them as of this date including all fees and interest around £6800.


How can this be? I entered the IVA to get out of debt and now I'm near the end they have moved the goalposts by a considerable amount!


Please help!

DorisTrousers

I am not quite sure as to the way the question is worded. Are you saying that you received the PPI payout?

markusuk1

The PPI payout was deducted from the debt that was owed on my IVA

debtfree2016

Hello Markusuk1, as I understand it PPI refunds are an asset and not applied to the debt.

markusuk1

The PPI payout was deducted from the balance of my debt and because of this I now have to pay statutory interest as the debt has been paid in full.

debtfree2016

Hi markusuk1, this is really strange. Who are you with?

markusuk1

Johnson Geddes

DorisTrousers

The PPI is an asset of the IVA estate as a whole, and as such should be paid over to the supervisor for the benefit of all. I am aware that some creditors have "offset" PPI payouts against their own balances though, so it is possible that that may have happened here I guess? The statutory interest is different, and is a recompense due to you by the people that mis-sold you the policy. Even if this particular creditor has offset the full balance, then that part of it is still due to you. It is blatantly ridiculous to try and suggest that you owe your own debt solution money for a policy that you didn't sell to yourself.

Johnson Geddes may take the stance that the statutory interest is also an asset of the estate, which is a different matter, but then that would be down to them, or their PPI company, to chase that money, not you. I don't believe it is an asset by the way, but they may have a different view, and the answer to that question will lie somewhere in the documentation that you have signed over the years.

National_Debtline

Hi markusuk1


It is not unheard of for statutory interest to be claimed in this kind of scenario, though it is increasingly rare these days as more and more insolvency practitioners sign up to the "IVA protocol" https://www.gov.uk/government/publications/individual-voluntary-arrangement-iva-protocol.


It may be that your provider is not signed up to this, or at least was not at the time your IVA began.


Dennis
@natdebtline

DBunyan

Hi Mark

Im in a similar position. Been paying my IVA fairthfully for 3 years now and I personally pursued PPI claims which i got over £12,000 back from and it went straitght to the IVA without any notice to me. The gauling thing was these PPI claims had nothing to do with the debt i was paying thru the IVA. They were seen as assets and just taken without even a thought to my circumstances. The IVA company have told me that this will not be considered. If the PPI claims were added to the payments I have been making, it would mean I would have paid back my total amount I took the IVA out for in the first place. Instead I still have another 25 months to pay and the £12,000 that I was conned out of in the first place disapears into thin air, and these are the people who are supposed to be looking out for you.