Everlengthening IVA - Ombudsman Response

[chris_]

Morning All,

Have received a letter from the ombudsman this morning and it has really knocked me for six. Not because there is anything wrong with my complaint, but because they say they cannot investigate it.

According to the ombudsman my IP became regulated by them on the 6th April 2007 and they have no power to deal with complaints against them for things that happened BEFORE that date.

This might explain why my IP has not been worried over his fees and failed to take me up on my offer of a compromise. They KNEW they couldn't be touched.

I am in despair now, 6 years into my 5 year IVA, IP demanding settlement, pregnant wife and young child - and it looks like I can't do anything. I can't believe it, how can things be so wrong and yet so legal.

What do I do now ?

Chris

[MelanieGiles]

Hi Chris

I did not know that the ombudsman could only deal with complaints relating to cases accepted prior to that date. This has not been highlighted in all of the directions we have been given in the profession. If you wish to take the complaint further, you should now refer to the IPs own regulatory body.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chris_]

Thanks Melanie for your quick reply - much appreciated.

The company's regulatory body is the institute of chartered accountants, but the new supervisor's regulatory body is the Insolvency Practitioner's Association - I do not know wether the old supervisor was regulated by the IPA though.

Who do I complain to, and what can they do if they agree with me ? - Am I now just wasting my time ? - sorry to sound so negative but I am really down at this moment - with all the talk going around over IP's fees being too high and banks insisting on lower fees, I just can't believe that my IP can get away with this.

[MelanieGiles]

Hi Chris

It looks like you will need to write to the IPA then. I suggest that you initially send them a letter expressing all of your concerns, and this will likely be referred to their conciliatory department in the first instance.

I do not think that you would be wasting your time, as when things go wrong it is always useful to have a third pair of eyes and ears willing to listen to both sides of the story and make suggestions about a solution to go forward with. And I would still make that trip to Carlisle to talk to them directly and see their files.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chris_]

Hi Melanie,

I will write a letter to the IPA in the first instance and see what comes back from that and then see what I can do.

I am still being threatened with bankruptcy by my IP and after 6 years of struggle, and paying 60K of a 52K debt I am just so tired of it all now - the IP wants 5K to settle the IVA and I don't have it.

As each month goes by they add hundreds of pounds more of fees to my IVA and make it even more difficult for me - I'm not sure I've got much fight left in me for this now.

[Skippy]

Chris, unlike Melanie I can't give you any advice, but I just wanted to say please don't give up. You have been so strong, and I can understand that it must be soul destroying to be told that the ombudsman cannot help. As Melanie says contact the IPA as your IP cannot be allowed to get away with this. Good luck, and please keep posting x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[tracy.h]

Chris i am so sorry that this dire situation is causing you so much stress.
No wonder your ip wasnt worried about your threat of the ombudsman being as they have only just become regulated by them.
I was also going to put in a complaint to the ipa against my former ip but was lucky that once i had sent my complaint to ip he sorted my situation out and no further action was needed.
I was advised that before i sent the complaint to the ipa i should try and resolve the issue with ip direct then if after 7 days had not had a reasonable response then send all correspondence direct to ipa.
In your case Chris you have already done this so send all copies of letters between you and ip by registered post to ipa and inform ip of your desision,who knows he may then want to try and resolve this situation and come to an agreement that will be viable to you both.
I understand you must be feeling there is no way out of this mess but there will be a solution,don't give up you have come this far.
Good luck,i really do hope sense will prevail and your ip will do the right thing by you and your family

Tracy

[chris_]

Thanks everyone,

It looks like I will have to put my trust in the IPA now.

Chris.

[Sadsack]

Hi Chris
I am so sorry you are going through this. It is downright outrageous! You have done everything in your power to get this sorted and it would be a shame if you gave up now. Not being an IP, I think Melanies advice, as always, is sound.

Please don't give up! If I had the £5k to give you, I would send it to you in a shot!

Take care of yourself
Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[aguise]

Same from me chris I have been following all the posts and think this is dreadful. They have to be accountable to someone. Keep trying and all the very best.

Ang

[chris_]

I have been onto the IPA's web site and have read through the complaints procedure. There is a specific note which states the following :

'The IPA cannot intervene in disputes regarding the level of an IP's fees.' They can only get involved in fees where the correct approval procedure has not been followed.

The IPA website basically states that under the 1986 insolvency act any action with regards fees should be undertaken via the courts. The IPA states that the act contains mechanisms whereby interested parties can ask the court to reduce excessive fees.

What does this mean to me ? Do I now need a solicitor ?

Chris.

[scaredkez]

chris i complained to the ipa back in january regards to upfront fees and the way they handled my iva upto the creditors meeting, they wrote back to me and said in regards to the fees they cannot do anything about them and i should seek professional help, unfortunately i was not in a position to do that financially so know i have lost the 1586 i paid up front you stand to lose a considerable amount more than i did, which is wrong and they should do something about it, i have not heard from the ipa either since feb saying they were investigating my case but to be warned it could be heard in an open forum, it was like they were trying to put me off complaining, i know from my own regulatory body they will do everything to protect their client, which is a shame, and only hope more people write to the ipa with their concerns and then they may seem to be actually acting on them, good luck with everything i feel so much for you, you have been on a very bumpy journey which has cost you so much more than the beginning and at the last hurdle it could have all been for nothing.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[tracy.h]

Hi Chris when i complained to my former ip regarding money i had paid and said i intended making a complaint to the ipa he sent me this complaints leaflet i will write what it says it may be of some help

The IP'S role in considering complaints is for the sole purpose of decideing whether to bring disciplinary proceedings against a member.IP'S by the very nature of work they undertake deal with a number of conflicting interests and the the IPA cannot intervene in or adjudicate upon commercail disputes and disagreements about the application of insolvencey law and making a complaint should not be seen as a substitute to the remedies available to individuals through the courts.You should be aware that the IPA cannot

Intervene in individual insolvencey cases or compel an IP alter,or amend or reverse an action he considers is correct.The insolvencey act provides interested parties with power to control,replace and challenge the acts or desicions of an ip.

Intervene in disputes regarding the level of IP fees.The insolvencey act lays out the procedure and also provides a mechanism for interested parties to ask the court to reduce the level of the fees if they should consider them to be excessive.We can only consider complaints about fees where ther is a claim that the correct procedure has not been followed,and award or compel an ip to pay you compensation for any financail loss you consider you may have suffered.
Not all errors automaticaly render an ip liable to disciplinary action and if an ip's judgement in the course of his work turns out to be flawed,and you consider you have sufferd financaily as a result then this is primarily a matter for the ip's indemnity insurers.

We would recommend that you consider seeking independent professional advise before exercising any recourse to the court or before bringing a negligence claim.We are unable to provide you with any advise in this regard.

[chris_]

Yep, That's about the size of it !

The info is the same as on the web site - in 2005/2006 by the way the IPA investigated 204 complaints, dismissed 184 of them, wrote warning letters to 9 IP's and only took action against 6 - these were all for breaches in their duties.

It looks like the only way to do anything is through the courts, but what do I do now? - are there any solicitors out there who specialise in insolvency law ? How do I pay for them, what can they actually do ?

I have looked through the entire insolvency act and insolvency rules this afternoon and apart from being as clear as mud, I cannot find anything whereby I can challenge their fees.

I am beginning to suspect, that IP's are totally untouchable for anything they have done before April 2007?

[ray_a]

Chris

Sorry but an IP has to be licensed to perform his duties.

Surely he belongs to a Professional Body because if he doesn't he is breaking the law.

I know I am coming into this debate and not aware of all the facts but just seen it and feel sorry that you are facing this!