End of IVA and PPI...help!

lucylucylu

I'm really hoping someone can help me! My partner made his final payment on his IVA last week (yay!) and then yesterday got a letter from the IVA company, which if i'm honest, we didn't understand. It's basically saying that they plan to claim his PPI (he's not sure how much this is but remembers signing a letter about 2 years ago) and they wont send his certificate of completion unless he signs it. We rang the office and some very charming man told him that he doesn't even know if my partner had any PPI as can't see it on the system and that signing the letter is the best thing so that he can get on with building his credit file. My partner seemed convinced by this but I'm concerned that he's signing something he doesn't understnd, which is how he ended up in an IVA in the first place :mad:
His total debt was about £26,000 and i think he's paid about £18,000 to the IVA.
So I'm assuming if he has PPI it just goes to the creditors after the IVA company take their cut? Is there any way he could end up having to pay anything extra? Most of the debt is actually in his ex wifes name but he took it on (i don't even know how that works?) so would she be entitled to any PPI? Sorry for all the questions, I just need some advice before he signs this letter!

sourcrates

Hi,

Don't worry, it's a bog standard letter they send out, he may not even have any PPI, but he will get the certificate of completion a lot sooner if he signs it.

There was a case going through the courts on the legalities of this approach, but I've not heard of any outcome as yet.

I had to sign a similar piece of paper, they couldn't find any PPI in any of my accounts either, and why would they, as I know damm well I didn't have any!!

Go ahead and sign it, then forget about it and move on !!

National_Debtline

Hi Lucy,


Most IVA contracts will refer to PPI in some way and that they wish to claim it, on your behalf, as a winfall, under the IVA. If they cannot do this (because you don't consent) they could argue that he hasn't complied with the IVA and (worst case scenario) is they could fail it. Check exactly what it is they want him to sign and take it to a local CAB if you are concerned. But it wouldn't be unheard of.


Any money paid from PPI refunds would go to the IVA company and the creditors, it is very unlikely anyone else would see any of the money. This is especially if your husband had already 'taken over' the credit. (He either refinanced in his sole name, which means it then becomes his debt, or it was joint debts - which means only his liability is ending under the IVA - his ex would still be liable). I hope that helps,


Laura
@natdebtline