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Post-IVA Windfall.

6 replies 426 views
In February of this year I completed my IVA. I had paid the full six years and raised a lump-sum via an equity-release mortgage. In total I have paid off about £36k of the £49k original debt (75%ish). I recently received a letter from RBS acknowledging (rather late in the day) that they do owe me a refund for PPI paid on a mortgage which I had with them prior to entering into the IVA, they have quoted a figure of £1,506.

What will happen to this money? Can they retain it to offset the difference between what I originally owed them and what they received from the IVA (the difference would be about £4K), do they send it to my IVA supervisor to distribute among ALL my creditors despite the fact that my IVA ended four months ago, or does it come to me?


  • mwarbymwarby Forumite
    2K posts
    Part of the Furniture 1,000 Posts Name Dropper
    it will either be used to offset the debt, or go towards the IVA, unlikey to go to you. For £1500 I expect offset is more likely as for IP to fight it is a lot of effort, and there wouldn't be much left for creditors. You should probably talk to your IVA company
  • Luisa07Luisa07 Forumite
    5 posts
    First Post
    When I completed my IVA in February this year too, I had to sign a document that any PPI refunds are paid into my IVA account. Not sure if you had to do the same. I was with Payplan plus.
  • reliquitreliquit Forumite
    26 posts
    10 Posts Name Dropper Photogenic
    Mine was with Aperture (Grant Thornton). I don't recall signing anything specifically about PPI refunds but as PPI is a "historical" payment I suppose it makes sense. Does this apply to ALL windfalls I wonder? Lottery wins (unlikely, I know)?
  • sourcratessourcrates Forumite, Board Guide
    21K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    There is a lot of contradictory information out there, most of it written before the Green v Wright verdict.
    Debt Camel has the most updated infor in regard to this -

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  • reliquitreliquit Forumite
    26 posts
    10 Posts Name Dropper Photogenic
    Thanks. That all make sense (apart from the reference to “R3 standard terms and conditions” which I can google later). 
    I had another letter from RBOS a couple of days ago stating that as I was still in a live IVA they would send the acceptance letter to my Supervisor. I think the phrase “live IVA” is confusing, but given that the PPI payment was undeniably an asset (albeit one I didn’t know I had), I suppose the point is moot. I haven’t heard anything from Aperture yet, but given their usual tardiness in answering queries coupled with the complications of COVID-19, I don’t expect to hear from them for a while.
  • reliquitreliquit Forumite
    26 posts
    10 Posts Name Dropper Photogenic
    Still no response from Aperture, but this morning I received a letter from Barclaycard stating that they too now accept that PPI was charged on my account over  a 4-month period - and that consequently they calculate that they owe me the princely sum of £19.04, and that this will be sent to my IVA Supervisor. It will be interesting to see how Aperture handle that.
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