To touch on one of Broke of London's point the risk of using a firm of your own choosing is that if the creditor offsets the PPI refunded against the outstanding debt you are still left owing the claims management company a fee (typically 25-30% plus VAT of the amount recovered) and that fee is not included in the IVA.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Gareth
Hi all,
To touch on one of Broke of London's point the risk of using a firm of your own choosing is that if the creditor offsets the PPI refunded against the outstanding debt you are still left owing the claims management company a fee (typically 25-30% plus VAT of the amount recovered) and that fee is not included in the IVA.
This is a distinct, and unwelcome, possibility, Gareth. Which is why I advocate claiming yourself and paying the claim in, so that the creditors get the full whack.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Gareth, my proposal actually encourages creditors to offset the claim against their own debt with any balance going to the communal pot. If there is no balance, how do Richardson Mail get paid if costs can't be deducted from the iva? And what are the costs?
I'm not sure I follow your off-set point Gareth. If the creditor can contractually off-set the PPI reclaim against their debt - and yes I know that there is a great debate raging in our wider arena on that point - what difference does it make if a claims company is used or not?
I think the point that some posters are making is that they would prefer to make the claims themselves directly to the creditors - therefore no claims management companies involved. I would have no problem in supporting any of my clients who chose this route, but there would be more admin involved for us as we would have to track the progress of same.
Mel, if I may: Gareth'e offset point was, say, if I commissioned a claims company to deal with a PPI, they would be after a 25% cut of the payment. If the creditor offset the amount against the debt, I would not see any of the repayment and nor would the claims company. They would then pursue me for the 25%, which, of course, I would not have.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Not if you were requested to complete the forms by your IP or I'd hope not. Any fees would have to be absorbed by the company who requested they act for you??
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
No payments come from you unless there is a win, they will only do the initial query and then do all the work on securing the m,onies etc, im assuming these terms will already have been agreed on a block contract between EiF and DfD.
Just be glad there doing it 7 months into your ive and not 7 weeks after like most poeple!!!
IVA completion and certificate received 08/10/2012!!!
EIF 40% in my letter it states on recovery of £3,000 at a 40% fee the company fee is £1200.00. sorry but shame on you payplan. they say you pay as much back into the pot, lets start with looking at the high % they take. And yes i have had dealing with EiF NEVER EVER again
40% commission does indeed seem a high sum - the claims management company I am using only charge 15% which I deem to be very fair given the work that has to be done - of course clients are free to make their own claims if they wish.
So just to put some figures down, award £10,000. EiF fees £4,000, Payplan fee unknown yet( waiting for a complete break down of dividents and fees). so without taking off paylans slice leaves £6,000 almost half gone. oh and the debter £0.00 but hold on.. if you get a litte bit from the stat interest you have to pay tax.!!
Hi Mel
15% is fair. not all of us are experts in finance or what we would call switched on or fully understand. in my letter it says " we therefore recommend that you pursue these possible compensation claims" no where does it say in this letter i dont have to. i only found this out at a later date.
Hi Deeps i have written on my thread but totally agree with you.
I am in the unfortunate position that one of my creditors has off-set their own debt with my PPI and sent the balance onto my IP.
They are now contesting this off set but this then means if they should get it upheld that:
EIF get a bigger slice of commission.
My IVA pot gets a lower amount.
All my other creditors get a lower dividend which in fact is near to 100p should they not contest this!
I wasn't given the choice to do these claims myself and i'm totally frustrated by the whole process and do think there should be a ruling on this and very quickly too.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
and as i said before, because Lloyds didnt break the claim down i have been told that because they cant work out the way they have calculated they can not help me. I was advised i can chase Lloyds so a case of we got our money tuff luck on your behalf.
