IVA with Payplan completed but want PPI refund

rednalslim

Hi there
I am looking for some advice for my elderly parents who were in an IVA with Payplan. Due to my fathers ill health (he is 72) the creditors agreed for the remainder of the IVA to be written off. This was 23rd June. They have a letter stating it was agreed in full and final settlement and nothing else to pay. As of yet they have not received a completion certificate.
Barclays have written to them saying they made an error in their ppi claim of about 4 years ago and they want to give them an extra £7900 (previously a total of around £15k of ppi was paid to payplan with a small percentage to my parents). Unfortunalty Barclays paid this straight to Payplan. My parents spoke to payplan and they said it had to go to supervisor to see if they were entitled to anything. 3 weeks later and they have called my father to say they will be given £1700, the rest will go to the creditors. Payplan are saying that because a completion certificate has yet to be issued they money has to go to the creditors. I dont understand as they have a letter stating the agreement ceased in full and final settlement, so I am not sure what creditors Payplan refer to.
I feel desperatley for my parents, they tried their hardest to pay it back. They have not got a bean to rub together and feel its grossly unfair that all the money is not there.
Are payplan trying it on or can they do this. My parents are willing to fight if thats what it takes.
I would be grateful for any advice. Thank you for reading.
Also, i forgot to mention that Payplan have said if the offer is not accepted they will not send the completion certificate

Lincsdebt

Do you know if your parents have signed a deed to agree to any future payments going to their creditors? I've just finished an IVA with Payplan and they sent me a form to sign to agree to them paying any future settled claims (via their claims company) to my creditors.


They said that I had to sign the form so they can issue the completion certificate. I did - I think they've had what they're likely to get now anyway - still haven't had the certificate though.

memberme

Since a ruling a year or so ago, completion certificates can be issued without waiting for the ppi reclaim process to be complete. The ppi process was delaying some IVA's from ending by significant periods of time. All PPI would therefore normally have gone to the IVA until the debts are repaid.

In signing the form, you agree that the iva firm can continue to claim the ppi funds but you benefit from ending the IVA.

If the ppi relates to issues before the IVA, then the IP has the write to continue to reclaim that until the debt is paid in full. It counts as windfall.

National_Debtline

You will certainly need to check the Terms and Conditions of the IVA but all too often, this will fall under the windfall section of the agreement, as mentioned above.


You can try and challenge it and possibly consider some legal advice - but be careful - this could all get quite pricey and, remember, they are offering some money to your parents, which is better than nothing. You could consider trying to 'haggle' up the offer, but again, you need to tread carefully, they may be able to withdraw the whole offer.


Laura
@natdebtline

TakeAwayKing_2

I guess the main question is were the creds paid in full plus stat interest in the IVA?
And if not, why wouldn't the money be all going to them?

Concerned75

Just thinking on this subject, if you have a Ppi that expires after your IVA has completed; certificate etc..at that point, can you pursue it and should the money automatically come to you?

mwarby

Think thats complex and subject to a lot if debates (not sure if any firm conclusions yet)

One school of thought is IVA has finished, so IP no longer has special powers and so money us yours

The other (the IPs and creditors pov really) is that if you had been missold the PPI then you had a valid claim with a monetary value. This claim was/is an asset unless specifically included and as such falls under the IVA and should go to creditors. IPs have historically had a tough time ensuring the money was split correctly (again much debate in this, does the creditor paying PPI have first dabs, or does it get split as any other IVA income/asset would be)

Chocolatespot

A new high court ruling (green v wright )
means that if you have completed your iva then paid your ppi claims back to the banks
Through your practitioner doing it and
Received your crappy 8% interest payment

You can now claim back the full ppi amounts
I am trying to find out how to myself
Without using a company on my behalf
Struggling to get information on how to proceed

Chocolatespot

Mr green challenged that once he had his completion certificate all obligations to iva were finished.
So all ppi money should be his
The courts agreed!!!!!
The iva appealed and lost

So now monies paid should be re-claimable
But i dont know how

mwarby

I'm so glad I never went in for the PPI thing in the first place, seems like its caused nothing but misery for customers and banks, and profits for lawyers