Hi there, I have a question plse.
I started my iva with MDC in nov 10 and luckily for me a few months later a relative offered to help me pay a settlement figure of £8k.. this was accepted by the creditors and i paid my final payment along with the settlement figure in Jan 13. MDC assured me everything was in hand so i left it to them and waited patiently until approx march. I phoned to find out how things were coming along and was told "the person dealing with your case has DIED!, unfortunately there is a back log to deal with so please bear with us".
This excuse wore thin by the june time but low and behold i recieved a letter from a company called 'Grant Thornton' explaining they had taken control of my account due to MDC going into recievership/ liquidation (i cant remember the term they used) anyway i phoned them to explain my position and they said at the time it takes 6 month to go through the closure department. Ive been intouch approximately 6 times since then but on my last call they said they couldn't close it as the creditors wanted to know if any PPI was claimable, should this not have been dealt with when considering my settlement figure? How can we agree a figure then 14 month later change the dynamics of the agreement? i get the feeling its GT that want the PPI, apparently they get 39% of any PPI claimed! is this currently unregulated? id rather the creditors took the 39% as GT have had (in my opinion) nothing to do with my settlement. I feel trapped without any hope of moving on, if they turn round next week and say we've increased the % GT receive(correct me if i'm wrong) to 90% there is nothing i could do as they would refuse closure. I don't trust this company one bit and cant understand how my account, as well as personal details are so easily transferred.
Can i expect more bad news is my final question??
Our profession was saddened when Peter at MD&C died tragically, and no-one expects things like this to happen, but when it sadly does it can leave firms in some disarray. I don't think that this was being used as an excuse, but was simply a firm dealing with a very sad loss of a much respected insolvency practitioner.
Money, Debt and Credit did not enter into either receivership or liquidation. They merely decided to exit the IVA marketplace, as it is increasingly difficult for some IP firms to continue operating effectively, when there has been a complete fee freeze since 2007 - yes our staff want payrises too, and in reality IP income has generally reduced since 2007 as disposable incomes have generally fallen.
Did the terms of your original IVA include all of your assets? If so, it is unfortunate but the PPI investigation will then need to be carried out - and I agree with you that it is a shame this was not forseen when you offered your settlement. 39% commission on a PPI claim is at the high end of the market, but presumably you would have had to enter into an agreement confirming that you were happy with that level of fee, before they could be authorised to act on your behalf?
The best thing you can do is to obtain a full account of what has happened in your case from GT, together with a more definite timescale for closure.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
Hi Ross and welcome to the forum
Our profession was saddened when Peter at MD&C died tragically, and no-one expects things like this to happen, but when it sadly does it can leave firms in some disarray. I don't think that this was being used as an excuse, but was simply a firm dealing with a very sad loss of a much respected insolvency practitioner.
Money, Debt and Credit did not enter into either receivership or liquidation. They merely decided to exit the IVA marketplace, as it is increasingly difficult for some IP firms to continue operating effectively, when there has been a complete fee freeze since 2007 - yes our staff want payrises too, and in reality IP income has generally reduced since 2007 as disposable incomes have generally fallen.
Did the terms of your original IVA include all of your assets? If so, it is unfortunate but the PPI investigation will then need to be carried out - and I agree with you that it is a shame this was not forseen when you offered your settlement. 39% commission on a PPI claim is at the high end of the market, but presumably you would have had to enter into an agreement confirming that you were happy with that level of fee, before they could be authorised to act on your behalf?
The best thing you can do is to obtain a full account of what has happened in your case from GT, together with a more definite timescale for closure.
Hi Melanie and thank you for your reply, I have not as yet entered the agreement allowing GT or whoever the use to investigate my ppi but they say they will not close the account until I sign the forthcoming documents and send them back, thus allowing them to collect 39% of ppi. Do I have any options? As for assets I had no assets to offer. I'll phone them today and ask for a full account of what's happening to my account. Thanks
Hi Ross. The PPI is regarded as an asset in all cases by GT. The 39% you have been quoted is probably going to the claims company too ( 24% claims company and 15% to the IP under the normal, agreed, fee structure).
The bottom line is that you don't have much choice if you want the IVA done and dusted. Totally, morally, wrong in my opinion, but as this whole saga has never been tested in court we are at the mercy ( or otherwise) of our IP's.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for your input foggy.
I really thought after my agreement with the creditors and a settlement figure was paid that closure was imminent, now though I'm concerned my iva agreement (even though settled) may collapse as the company that seemingly adopted my account (not through choice) charge extortionate rates. I haven't yet given permission for them to 'exploit' my ppi but it seems I'll have to if I want closure.
A bitter pill to swallow.
Your IVA shouldn't be in jeopardy. Any change in fees that you agree to will also have to be put to the creditors, who might well reject it anyway.
The biggest problem from your point of view will be the time all this messing around takes -- I am afraid GT are far from the fastest horse in the race, but they do get there in the end.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I still fail to understand why/how GT can refuse to close some cases whilst waiting for PPI to be investigated, yet they close others. There is no consitencey whatsoever in the IVA market in my opinion.Luckily ours were closed while investigations were (and still are) ongoing, but I feel this is because I played the tantruming 2 year old child card & stamped my feet till they obviously got fed up of hesring from me! Wrong way to go about things I know, but, in the words of a supermarket chain - every little helps.......
There is plenty of consistency in the IVA marketplace, but unfortunately the economics of relying on IVA fee income does lead to firms looking for other ways to find revenue. If it was that bad, the IP regulators would have stopped it by now.
Nothing wrong with stamping your fee tinks81. If you were entitled to have your case closed, then this should have been done within prescribed timescales.
