Statutory interest on PPI paid into IVAs

mrs_vex

I completed my IVA 6 years ago.
My original debt to creditors was £40000. Over a 6 year period I paid a total of £34,000 (£475 per month).
I was subsequently contacted by my IVA trust 3 years ago to say they had appointed a claims management company to pursue old PPI claims. Any recovered claims would still go into my IVA estate but as a goodwill gesture the iVA trustees would pay me any recovered statutory interest minus costs.
I have just heard from an old creditor that I have a successful case of £16,000. Of this total amount approximately £9000 is the gross interest calculation. Will I be entitled to now receive this £9000?
I also remember that when my iVA was still active, there was a PPI claim from another creditor which also went into my IVA. This was around £14,000. Am I entitled to claim for the statutory interest on that historic payment even though that went straight into my IVA estate at the time ?
Considering my original debt of £40000, the payments I have personally made of £34000, the historic IVA payment of £14,000 and now this new PPI claim of £16000, this means over £64000 will have been paid into my IVA estate. This is £24,000 more than my original debt. I am fully aware that costs are involved in administering an IVA, but surely I will be entitled to something back. Can you please help. I personally facing a tough time financially with the onset of the pandemic due to furlough and the threat of redundancy so this could be a great help.
Thanks

dunstonh

I have just heard from an old creditor that I have a successful case of £16,000. Of this total amount approximately £9000 is the gross interest calculation. Will I be entitled to now receive this £9000?

You have no entitlement to that £9,000.  PPI redress is not a windfall but an asset which must be included in the IVA.  The insolvency practitioner should not be giving you goodwill gestures as they have an obligation to get back the maximum they can to return to the creditors that were left unpaid as a result of the IVA.

Only if the redress payments exceed the amount of the IVA should you receive any money (which would be the excess over the debt that went unpaid).

I also remember that when my iVA was still active, there was a PPI claim from another creditor which also went into my IVA. This was around £14,000. Am I entitled to claim for the statutory interest on that historic payment even though that went straight into my IVA estate at the time ?

Again, you have no entitlement to the interest unless the amount exceeded the outstanding debt that went unpaid.

but surely I will be entitled to something back.

You should enquire to the IP if the redress payments are taking you over the amount of the original debt.  Remember, it is original debt.  Not any reduced amounts agreed as part of the IVA or earlier write offs/reductions prior to the IVA.

These are the rules as they should be but there has been some inconsistency with their application over the years.

mrs_vex

Thank you for your reply.

As I mentioned before, my original debt was £40,000. I have personally paid in over £34,000 into my IVA and the previous PPI reclaimed amount was £14000, making over £48,000 paid in so far at least.  This new payment from PPI reclaimed is £16000, so bringing the total paid in to £64,000, against the original debt of £40,000. Maybe this is why the IP is offering to make the goodwill gesture of statutory interests as payments into my IVA estate seem to far exceed the original debt.
Thanks

[Deleted User]

If the debt genuinely was £40,000 rather than that being an amount frozen and thus losing the lenders interest etc and thus your IVA resulted in a FULL repayment of EVERYTHING you owed (and would have owed, had you not entered the IVA and paid in full) then you should ask the IVA people to give you the extra money