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A very good friend of mine has been paying an IVA for almost 4 years and the contract (IVA) was issued for 60 months (5 years). They have recently received many telephone calls regarding Mis sold PPI and has been sent some documents to sign, authorising them to claim PPI on her behalf.

I have been doing some research on here and read some of the threads regarding similar situations and wondered if someone might be able to add some clarity to this situation?

 

(1) The correspondence received states that if she does not sign the new T&C's then she could continue with the old contract but this may delay the ending of the IVA agreement. Does this mean that the IVA company can hold off on her IVA closure until she does sign the new agreement or could this be just an idle threat?

(2) Can the IVA company extend her term length of her IVA if they choose to?

(3) She has complied fully throughout the current IVA agreement and by 60 months will have paid out £14K OF £17K debt. Is this acceptable?

(4) Is it possible that the IVA company will hire a management company to claim the mis-sold PPI and charge it to her IVA account?

(5) If the answer to (4) is yes, and there is insufficient funds available, will my friend be liable to pay their costs?

(6) How will the IVA company know whether their clients have been mis-sold any PPI? Surely if their clients say they were not mis-sold anything that should be the end of it?

 

We have SAR'd all her creditors and only a couple have paid nominal sums from mis sold PPI and the rest of them have said 'NOT MIS-SOLD', go away. We have advised the IVA company that they will not pay but they insist they want to chase it for themselves.

 

Apologies for all the questions but she is seriously ill and the stress of it is not making her any better.

 

Would appreciate any guidance or advice please.

Santander PPI X 2 **WON** claims on behalf of son (Oct 2010/ Mar 2011)

Citicard O/H (PPI) - **WON** Compound Interest Dec 2011

Citicard O/H (Charges) Bailiffs sent in August 2012

Barclaycard - **WON** Compound Interest Oct 2011

Monument - account information being sought for OH

Citicard - self - N1 submitted August 2012

Barclaycard - self - **WON** damages for non disclosure/information now rec'd. Aug 2012

Barclaycard - relation - Failed SAR sent 29/09/11

Halifax SAR sent 18/08/2011 for relation

LTSB - SAR sent 09/08/2011 for friend

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Will flag your thread for the PPI guys :)

 

I am a little puzzled that the IVA company are insisting that they use a CMC of their choice where there will be up to 30% handed over to the CMC for doing something that you can do for free.

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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Hello there,

 

IVA firms are more and more turning to PPI reclaims to bolster their potential income from each of the IVAs they set up for their client. Of course an Insolvency Practitioner has a duty to try and seek the very best return for the creditors, and since the IVA is a binding contract the IP could potentially fail the IVA if there isn't cooperation. So often people are caught between a rock and a hard place.

 

1) There is the potential that the IVA could be extended. Do check the terms of the contract but typically this would be a further twelve months

2) Potentially. Most IVAs can extend by a further twelve months

3) Yes

4) They can use a third-party firm, often it might be an in-house firm. I'm not sure that they could 'charge' your friend although they will take a cut for their 'work'

5) I'm not sure

6) You wouldn't hope, wouldn't you?

 

Sadly, there are still some very underhand practices being carried out within the IVA industry - and whilst many of the seriously dodgy firms have fallen by the wayside we still see examples of firms that seem to be acting under greed rather than objectively doing what's right for their customers and creditors alike. Don't get me wrong, I appreciate the virtues of an IVA but I do feel they are the right option for very few people; that's not to say it's the wrong option for your friend. I guess I'm digressing a little!

 

In short, I think it's likely that your friend *may* have to cooperate although this is an idea that is currently being inesvtigated and if I find anything further that changes this view I'll PM you ASAP.

 

Seq.

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While I am not an IVA expert in general terms, there are a couple of points I can make to help out here.

 

I would suggest that the IVA company cannot sign up a CMC on your friend's behalf or insist on using one.

 

The think to remember is that the IVA includes debts at a certain point in time and that debts incurred after that are not included. So by hiring a CMC and assuming a successful claim, the creditor may use their right of set off to reduce the amount of indebtedness to them. (Providing they are still the account owner).

 

If that happens, your friend won't see any physical cash BUT will still have a liability to the CMC for their 30% or 40% fee. Your friend would have to pay that because it is outside the IVA, i.e. a "new" debt.

 

A successful claim of, say £2,000 at a fee rate of 30% lumbers your friend with a £600 bill.

 

If it were me I would be insisting that the PPI reclaims are dealt with well away from a CMC for that reason and be asking why an insolvency practitioner would be (possibly) leading your friend into more debt.

 

Also have a look at challenging the decisions for not upholding the PPI complaints yourself.

 

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I would suggest that the IVA company cannot sign up a CMC on your friend's behalf or insist on using one

 

Since an IVA is a legally binding Insolvency-based court order it risks failure if the OP doesn't co-operate with the Insolvency Practitioner. For homeowners there could be the further risk of the Insolvency Pracitioner invoking a bankruptcy clause if an IVA does indeed fail.

 

What isn't so clear is whether or not it is fair for an IP to expect an individual to have the whole PPI issue investigated - whether via a third-party or directly. If any money is recovered it'll have to be given to the IP anyway.

 

This is such a massive grey area.

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WOW! Thank you all for your replies and opinions - I didn't realise that there were IP's out there doing the same as the banks. How silly of me to get complacent over such matters, lol.

 

You both manke some really valid points there and I will have to give them some serious thinking time.

 

I can't help but wonder how many other people are in this position?

 

If the IP decides to extend the duration, she will have paid her debts off in full - However, looking at the statement she received last year, first one I think, the creditors don't seem to get much out of it, it mainly goes to the IP so why would the creditors agree to an IVA in the first place? Beggars belief really. Should the IP's be providing a statement annually to confirm what payment shave been made and to who?

 

There is no property involved here so that's a good thing.

The original IP passed her case over to a different IP, not sure why, some time ago so I will have to get access to her original agreement and any further documents she has on the matter to read the small print. Perhaps that might answer some of our questions?

 

I will keep you posted folks.

 

Really appreciate your help guys, Thank you both.

 

Shelley

Santander PPI X 2 **WON** claims on behalf of son (Oct 2010/ Mar 2011)

Citicard O/H (PPI) - **WON** Compound Interest Dec 2011

Citicard O/H (Charges) Bailiffs sent in August 2012

Barclaycard - **WON** Compound Interest Oct 2011

Monument - account information being sought for OH

Citicard - self - N1 submitted August 2012

Barclaycard - self - **WON** damages for non disclosure/information now rec'd. Aug 2012

Barclaycard - relation - Failed SAR sent 29/09/11

Halifax SAR sent 18/08/2011 for relation

LTSB - SAR sent 09/08/2011 for friend

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Hi Shelley,

 

I've undertaken a little bit of further research for you. Just to give you a bit of background the organisation I work for works closely with a variety of Insolvency Practitioners and the general consensus is that they are unlikely to fail an IVA if you do not cooperate although they may not provide you with a completion certificate unless any mis-sold PPI is recovered - either by their IP, a third-party or even yourself. They do have a duty to maximise the return to the creditors but they need to ensure they undertake their work in a professional and reasonable way. Not all IPs are the same, however, and I can see some of them putting a lot of pressure on people to use their appointed third-party firms.

 

Seq.

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Hi Sequenci

 

Have you read this article (between the lines maybe) from Insolvency News?

 

http://www.insolvencynews.com/article/14957/corporate/fairpoint-profits-rocket-87

 

Slightly on and off subject this one from the same source also caught my eye

 

http://www.insolvencynews.com/article/14993/corporate/co-op-bank-declares-662m-loss

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Hi Shelley,

 

I've undertaken a little bit of further research for you. Just to give you a bit of background the organisation I work for works closely with a variety of Insolvency Practitioners and the general consensus is that they are unlikely to fail an IVA if you do not cooperate although they may not provide you with a completion certificate unless any mis-sold PPI is recovered - either by their IP, a third-party or even yourself. They do have a duty to maximise the return to the creditors but they need to ensure they undertake their work in a professional and reasonable way. Not all IPs are the same, however, and I can see some of them putting a lot of pressure on people to use their appointed third-party firms.

 

Seq.

What impact will it have if a closure certificate is not issued?

Are they supposed to issue annual statements of where her payments have gone to?

Interestingly that now the IP's are pressuring to claim PPI having been pressurised into buying it in the first place?

Lining their pockets comes to mind.......

Santander PPI X 2 **WON** claims on behalf of son (Oct 2010/ Mar 2011)

Citicard O/H (PPI) - **WON** Compound Interest Dec 2011

Citicard O/H (Charges) Bailiffs sent in August 2012

Barclaycard - **WON** Compound Interest Oct 2011

Monument - account information being sought for OH

Citicard - self - N1 submitted August 2012

Barclaycard - self - **WON** damages for non disclosure/information now rec'd. Aug 2012

Barclaycard - relation - Failed SAR sent 29/09/11

Halifax SAR sent 18/08/2011 for relation

LTSB - SAR sent 09/08/2011 for friend

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Hi Sequenci

 

Have you read this article (between the lines maybe) from Insolvency News?

 

http://www.insolvencynews.com/article/14957/corporate/fairpoint-profits-rocket-87

 

Slightly on and off subject this one from the same source also caught my eye

 

http://www.insolvencynews.com/article/14993/corporate/co-op-bank-declares-662m-loss

 

Hello there! Good to see you.

 

That makes interesting reading, doesn't it? I wonder if their poor performance had anything to do with their decision re bank accounts and bankrupt people?

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Hi Shelley,

 

I've undertaken a little bit of further research for you. Just to give you a bit of background the organisation I work for works closely with a variety of Insolvency Practitioners and the general consensus is that they are unlikely to fail an IVA if you do not cooperate although they may not provide you with a completion certificate unless any mis-sold PPI is recovered - either by their IP, a third-party or even yourself. They do have a duty to maximise the return to the creditors but they need to ensure they undertake their work in a professional and reasonable way. Not all IPs are the same, however, and I can see some of them putting a lot of pressure on people to use their appointed third-party firms.

 

Seq.

Hi Sequenci,

Thank you for your additional research.

I appreciate that IP's have to maximise the income for the creditors but as mentioned earlier, looking at the statement received from her IP, it doesn't look like the creditors receive much because it gets swallowed up in fees one way or another - creditors get very little.

(1) Is this typical?

(2) Should my friend be receiving annual statements from her IP?

(3) What impact will it have if no closure certificate is issued?

 

Wintry,

Your links make for very interesting reading

 

I think I am inclined to contact her IP and make enquiries with respect to clarification as to whether or not they have inhouse team to recover PPI and what fees will be incurred etc and see what their response is.

As my friend is seriously ill, I want to try and remove some of her stress from this matter but at the same time, not jeopordise the situation for settlement purposes, so would appreciate your thoughts on my questions above please.

 

Many thanks

Shelley

Santander PPI X 2 **WON** claims on behalf of son (Oct 2010/ Mar 2011)

Citicard O/H (PPI) - **WON** Compound Interest Dec 2011

Citicard O/H (Charges) Bailiffs sent in August 2012

Barclaycard - **WON** Compound Interest Oct 2011

Monument - account information being sought for OH

Citicard - self - N1 submitted August 2012

Barclaycard - self - **WON** damages for non disclosure/information now rec'd. Aug 2012

Barclaycard - relation - Failed SAR sent 29/09/11

Halifax SAR sent 18/08/2011 for relation

LTSB - SAR sent 09/08/2011 for friend

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You could send a Subject Access Request to the Insolvency practitioner and they would have to provide you with all the data they have on your friend - that should identify any of their actions and decisions !

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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Hi CB,

Will that include details of payments made to her creditors as well?

Santander PPI X 2 **WON** claims on behalf of son (Oct 2010/ Mar 2011)

Citicard O/H (PPI) - **WON** Compound Interest Dec 2011

Citicard O/H (Charges) Bailiffs sent in August 2012

Barclaycard - **WON** Compound Interest Oct 2011

Monument - account information being sought for OH

Citicard - self - N1 submitted August 2012

Barclaycard - self - **WON** damages for non disclosure/information now rec'd. Aug 2012

Barclaycard - relation - Failed SAR sent 29/09/11

Halifax SAR sent 18/08/2011 for relation

LTSB - SAR sent 09/08/2011 for friend

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Share on other sites

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