IVA and PPI refund help

kedo_dev1

Hi, my husband has received numerous letters from RBS with PPI refunds following their own investigations. Each letter has a different refund value, in total amounting to around £21.000. He has not pursued these claims, RBS have contacted him. 
My husband has 1 year to go with his IVA, with £3000 left to pay, he will be declaring this PPI refund to the IVA company but my question is will they take the amount left outstanding, £3000 or the full £21.000? 

mwarby

It depends on the level of the original debt.

Although he has £3000 to pay (£250 a month) that is unlikely to be the debt remaining, which would get written off at the end. The maximum total that can be repaid is he original debts, plus the IVA/IP fees which are normally 2-3k (although it varies, sometimes by quite a lot).

The good news is that if the £21k brings it tom that figure or above the IVA is finished. If the £21k doesn't do that then then the IVA continues until the payments reach that level or the agreed duration (normally 5 years, or 6 if can't release equity)

In short it's quite likely that you will see very little or any of the PPI money, sorry