I don't want to sign the Deed of Assignment. I have fulfilled all aspects of original contract.

[nittykitty]

Hi
I have read this thread with interest and I am in a similar position of my IVA coming to an end but PPI is still outstanding.

I too was worried about my property, (where equity has already been sorted and I'm paying an extra 2months) becoming an asset where they could potentially ask for equity at a later date or indefinite amount of time!

Having read this numerous times since I received it yesterday I believe it's only the PPI element which will affect me so will go ahead and sign it in order to receive my completion certificate.

If I win the lottery after completion will that be an asset?

[Foggy]

David, and / or anyone who has had one of these packs .... could you kindly clarify something for me:

Is it possible to accept the Deed of Assignment yet refuse the Change in Ts & Cs (or vice versa) or are they intertwined ?

[nittykitty]

Hi Foggy,

They are two separate things but looks like if you don't sign new T & C's the I.P. will not be able to conclude until all financial claims are resolved.

So in answer to your question they are in effect intertwined.

That's my take on it anyhow.

[MelanieGiles]

It is difficult for any of us to comment fully on this, without sight of what the proposed new terms and conditions actually are. One thing for sure is that it is as important to ensure that clients fully understand the implications and perhaps benefits of these now, just as much as they need to when they first enter into an IVA.

[spurs]

Why has nobody from DFD come on hear to clarify things?? So many questions on the matter!

[David.43]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

David, and / or anyone who has had one of these packs .... could you kindly clarify something for me:

Is it possible to accept the Deed of Assignment yet refuse the Change in Ts & Cs (or vice versa) or are they intertwined ?

Hi Foggy,
I am no expert, nor knowledgeable on this matter. Thus, I don't want to mislead you in giving you non-experience guided professional information/advice. For me, I have taken advice given by Andy Davie and MelaineGiles in this forum thread. Sorry for not being helpful. What I can say based on what I have read regarding DFD's "Deed of Assignment", it is to ensure after you got your Certificate of Completion of IVA, you must send your "Supervisor/IP" and refunds you received from mis-sold financial products (e.g. PPI, overcharge for penalty of payment default, etc). They call this "Causes of Action". It also binds you (Assignor) to assign all Causes of Actions to your "Supervisor/IP" (i.e. Assignee). I have not read the contents of the Change of Terms of IVA yet so I can't comment on it. From what I read in forums, a lot of people said it is to incorporate IVA Protocol 2014 in it. The difference in this protocol from that of 2013 is that it gives the option of "secured loan" of remortgage is not workable. Whether the two are linked up or not depends on what perspective you are viewing it from.
Kind regards, David

[David.43]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles

It is difficult for any of us to comment fully on this, without sight of what the proposed new terms and conditions actually are. One thing for sure is that it is as important to ensure that clients fully understand the implications and perhaps benefits of these now, just as much as they need to when they first enter into an IVA.

Hi Mel,

I got one burning question to ask you. You know some IVA has got a term in the agreement to release a specific amount from the equity of your property about 6 months before due date of completion (assuming its a five years IVA)? If your property equity has increased a lot more than the debt company forecast-ed during the setting up of the IVA 4.5 years ago, can the new IVA Protocol 2014 allows the Supervisor/IP to increase the originally agreed amount in the IVA terms to whatever amount as long as the remortgage is workable with that new increased amount? Now, I wondered whether in DFD's change of Terms of IVA got this clause in it or not!

Kind regards, David.

[David.43]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by nittykitty

Hi
I have read this thread with interest and I am in a similar position of my IVA coming to an end but PPI is still outstanding.

I too was worried about my property, (where equity has already been sorted and I'm paying an extra 2months) becoming an asset where they could potentially ask for equity at a later date or indefinite amount of time!

Having read this numerous times since I received it yesterday I believe it's only the PPI element which will affect me so will go ahead and sign it in order to receive my completion certificate.

If I win the lottery after completion will that be an asset?

Hi NittyKitty,

Yes, you are right regarding the "Deed of Assignment". DFD just wanted to protect there rights to any refunds made directly to you and also having legal rights in making the claims themselves for "Mis-Sold" financial products to you to fulfill their legal duty to the IVA creditors. With this deed, i think the creditor will not agree with your supervisor in issuing the Certificate of Completion of your IVA. The Deed has nothing to do with your property, pension lump sum, etc except what DFD called the "Causes of Action". They want the legal rights to the latter.

Kind regards, David

[MikeyM]

I don't see a problem signing the deed of assigment if it enables the IVA to be closed while PPI contines to be reclaimed. However, if they are asking you to sign the new T&C's so as to convert to the 2014 protocol and are linking the 2 then I think that is not fair.

A word of caution too about these PPI reclaims that are going direct to IP. Where statutory interest is paid the tax due is being deducted at source at 20%. If you pay tax at a higher rate (i.e 40% or more) then I think you need to ensure that you raise this with your IP as I think they should deduct the additonal tax due before any disbursemnents to creditors or you could end up with a tax bill at the end of the year. For example I recently got awarded statutory interest on my PPI reclaimed before my IVA started. The amount of interest is about 2900 less 20% tax i.e £580. This is going direct to my IP. However I pay tax at 40% and therefore HMRC will want 40% tax on that 2900 i.e. 1160. I have therefore raised this with my IP asking that the additonal tax issue be coinsdered.

[MelanieGiles]

I did get a note from Laura on Friday on your case Mikey, but have been so busy I have yet to respond. I will do so today - and trust me you will be allowed to retain additional money to pay your additional tax.

You raise a very good point here - we always check our client's tax position before declaring who is entitled to what.

[Adam Davies]

Hi

I think clarity is needed from DFD, if it means that the completion certificate can be issued early and no changes to equity release [secured loan]then it must make senses to sign and move on ?

Regards

[nittykitty]

Not sure if my IP knows our tax position as I'm on normal rate but OH is now on 40% which is in a completely different position to when we started the IVA.

[David.43]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MikeyM

I don't see a problem signing the deed of assigment if it enables the IVA to be closed while PPI contines to be reclaimed. However, if they are asking you to sign the new T&C's so as to convert to the 2014 protocol and are linking the 2 then I think that is not fair.

A word of caution too about these PPI reclaims that are going direct to IP. Where statutory interest is paid the tax due is being deducted at source at 20%. If you pay tax at a higher rate (i.e 40% or more) then I think you need to ensure that you raise this with your IP as I think they should deduct the additonal tax due before any disbursemnents to creditors or you could end up with a tax bill at the end of the year. For example I recently got awarded statutory interest on my PPI reclaimed before my IVA started. The amount of interest is about 2900 less 20% tax i.e #65533;580. This is going direct to my IP. However I pay tax at 40% and therefore HMRC will want 40% tax on that 2900 i.e. 1160. I have therefore raised this with my IP asking that the additonal tax issue be coinsdered.

Hi MikeyM,

The DFD's "Deed of Assignment" I received got the following Background, and Terms agreed: Quote:
<
If you read the DFD ¡§Deed of Assignment¡¨ again on the section titled ¡§Background¡¨, there a 3 items.
(A) The Assignor (i.e. debtor) has a number of causes of action for financial mis-selling of PPI insurance alongside various products and the charging of excess fees for default in relation to a credit product (referred to as ¡§The Causes of Action¡¨).
(B) The Assignee is the Supervisor of the Assignor¡¦s Individual Voluntary Agreement (¡§IVA¡¨). The Assignor has complied with the terms of their IVA save for concluding the Causes of Action.
(C) The Assignor has agreed to assign the Causes of Action to the Assignee on the terms of this deed with effect from Thu 12th December 2013 (The Effective Date).

Agreed terms

1. Assignment
1.1 The Assignor assigns all its rights, title, interest, and benefit in the Causes of Action in the Assignee with effect from the Effective Date.
1.2 The Assignee will have sole discretion to determine whether or not to pursue any or all of the Causes of Action.
2. Undertakings
2.1 The Assignor undertakes to provide all relevant documentation which is in or comes into their possession in relation to the Causes of Action.
2.2 The Assignor undertakes to provide all relevant documentation which is in or comes into their possession in relation to the causes of Action.
2.3 The Assignor undertakes not to take any action which will prejudice the Assignee¡¦s ability to enjoy the benefits of the Causes of Action.
2.4 The Assignor undertakes to assist the Assignee with any litigation in relation to the Causes of Action.
3. Indemnity.
The assignee shall indemnify the Assignor against all liabilities, costs, expenses, damages and losses that the Assignor suffers or incurs in connection with the Causes of Action after the Effective Date as a result of the Assignee¡¦s actions in pursing the Causes of Action, except to the extent that such losses, damages or costs arise as a result of the Assignor¡¦s failure to satisfy its obligations under the Causes of Action before that date.
4. Further Assurance.
Each party shall, and shall use all reasonable endeavours to procure that any necessary third party shall, execute and deliver such documents and perform such acts as may reasonably be required to give full effect to this deed..
5. Governing Law - I don¡¦t feel any problem here.
6. Jurisdiction - I don¡¦t feel any problem here.
>
Thus, I felt the indemnity clause 3 gives us the protection against the taxation you mentioned, does it not?

Kind regards, David

[MikeyM]

Thanks Melanie. Look forward to hearing from you or your team.

[MelanieGiles]

The Assignee will still need to account for income tax to HMRC at the basis rate - which is generally deducted from claims before they are paid over. Once a right of action is assigned, the assignor no longer has any rights over that action.