Debtmatters, Grant Thornton and Payplan

[joh71262]

On the other hand Simon, I wasn't advised of any other options where I suspect that smaller, more personal companies such as Melanie's would have provided clearer information and a MUCH better service than DM.

[MelanieGiles]

Well of course I have my own views about the quality of service provided by IPs who are responsible for so many cases, and prefer my way of administration where I do actually remember all of my clients.

[ncollier]

I received my letter from Paypal about the Debtmatters transfer and they want me to sign a variation agreement giving them the right to take 25% fees from my payments. Their rationale is that their average level of collections from these IVA's is low and they therefore have high costs. My account is up to date and I was previously paying 10% to Debtmatters. Although this is presumable paid from the banks end and not myself, I would rather more of the money went to be the parties with whom I incurred the debt. What happens if I refuse to agree to those terms?

[Phil]

I have had the same letter. If you go to the log in address they give you in the letter there is a FAQ section in there.I think in answer to your question is there is no option, if you do not accept these changes your iva will be failed,as reading it in the faq section.
P

[MelanieGiles]

That is only the case if the IVA is presently in arrears. The IVAs can only be amended with the agreement of both debtor and creditors, and if the debtor refuses to agree then the IVA will be supervised under its current terms.

There is nothing in the proposed variations that will affect the debtor, indeed it appears that the new terms give far more flexibility than under the original terms. I would urge any forum posters who are caught up in the Debtmatters transfers to give serious consideration to the proposals before knee-jerking and refusing to sign. Any additional cost is to be met by the creditors (who of course also have to agree to the terms), and to be frank whether you are returing 18p or 88p in the £ will have little difference on your position into the future.

[J-DOUBLEYA]

Hi all,
I for one, appreciated your posting here Melanie. I wondered what the outcome was going to be for DM. GT were a fab company when a certain Poultry namesake was running the show but sadly they have moved up to the numbers game. I am not convinced their Belfast operation is up to scratch but heres hoping all goes well for all those affected.

[MelanieGiles]

Would be interested to know what leads to your concerns about the Belfast office of GT - do you have any first hand experience, or disgruntled clients, you can tell us about?

[goulda]

Mel,

Once again thanks for your input, I suspect I am like others involved in the transfer we will be glad when the changeover is complete and everything is back to normal not that I have any complaints at the moment - just a bit wary!

[Phil]

I have already accepted online but will be sending back the paperwork as well, As goulda says i will be glad when all the dust has settled.In reality nothing has changed still keep up with the repayments till march 2012.

P

[MelanieGiles]

That is a very positive and sensible way of looking at things both Goulda and Phil. No-one likes change that much - but in this case I am sure it will be a change for the better for all of you.

[J-DOUBLEYA]

Would be interested to know what leads to your concerns about the Belfast office of GT - do you have any first hand experience, or disgruntled clients, you can tell us about?

Hi Mel, I have had a few clients that complained about the time to set up, contact or should i say lack of etc etc. I cant post specifics but suffice to say i am a tad dubious about the production line that seems to be in operation in Belfast ![?]

[MelanieGiles]

Thanks for the information, J-Doubleya.

[Cybus]

Just for clarification ...

Those who have transferred from Debtmatters to Payplan / Grant Thornton and who are currently up to date with their IVA and have abided by the terms ... if they do not consent to vary the terms of the arrangement, they will not be penalised and their arrangements will continue as they are already, on the same terms as agreed at the original meeting of creditors?

I agree that varying the terms may assist some of those who may have been in default in some way as, yes, it may give them a second chance.

I'm still not understanding why ALL debtors are being asked to vary the terms of their arrangements. Surely due dilligence would have identified that there may have been some debtors in difficulty of one form or another and it would make more sense to suggest a variance of the terms of the arrangements to just them rather than to all of the debtors.

In compliant debtors, I believe it would have made more sense to deal with any required variations as and when need arose. It's more than likely that the terms of the arrangement will have been modified by at least Grant Thornton in a high percentage of cases already at the original creditors meetings, so no real sense in varying the terms again?

[MelanieGiles]

For compliant debtors, who have a choice whether to have their IVA varied or not, they may exercise that choice and the new IPs will be unable to process a variation, however I would suggest that people do, as the new terms provide flexibility for the IVA payments to be reduced at the discretion of the Supervisor which could be helpfful given the current economic climater.

I am told that the Debtmatters proposals are deficient in many of the usual IVA clauses and terms hence the need for variation, and it is probably easier to deal with this as an overall exercise rather than on a case specific.

[goulda]

Melanie

are you able to elaborate on.....are deficient in many of the usual IVA clauses.......