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Post-IVA Windfall.

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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?

Replies

  • mwarbymwarby Forumite
    2K posts
    Part of the Furniture 1,000 Posts Name Dropper
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    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
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    Hi,
    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
    UPDATE:
    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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