I think this PPI theme is now way out of hand and no answers appear to be materialising! Lets face it the claims companies are out to make a fortune, the IP's are out to do a gd job and make a profit also! Sorry to all IP's but you wouldn't be doing it for nothing! Some debtors are saying how they are glad they are paying as much as they can and some are saying to hell with it, if I can keep the money I will! For all our sakes will somebody give an answer as to whether it is legal for IPs to make debtors claim, if people can keep monies if IVAs have completed or whether we can just say no we were not mis sold!! It's now ridiculous as nobody seems to have an answer!!! Arrrrrrrgh!!!
I will give you my take on it for what it is worth.
If PPI has been missold at any time leading up to or during the IVA then any compensation and interest recovered is an asset and should be paid into the IVA pot. If this makes your repayments 100p in the pound plus interest plus IP fees, then anything left is yours!
IPs can still administer this PPI payment even if you have completed your IVA and you have received a completion certificate. If your IP says you can keep it, then good luck to you but I would recommend that you get their approval in writing.
Where some IPs are standing on thin ice, is where they are compelling people to make a claim for missold PPI even if the individual does not believe that they were missold it. As well as that, there is serious concern where IVA companies are compelling people to use nominated claims management companies who not only charge a higher than average commission (30-40%) but there is some evidence that the IP/IVA company are receiving a commission or referral fee!
Last edited by Heretoday on Sun Sep 30, 2012 11:51 pm, edited 1 time in total.
7 years after starting an IVA I finally received a completion certificate from ClearDebt
Of course IPs don't turn up to work for nothing! What other profession does!
Our role is to realise assets and recover as much money for the creditors we are directly responsible to. PPI reclaims are assets and not windfalls - so you have to check whether your own IVA proposal includes an "all-assets" inclusion clause. Many do, and if your IP uses the R3 standard Terms and Conditions then this is automatically included.
The best way to deal with this is in an honest and open way with your IP. I am sure that this will speed up your eventual closure - but make sure that your income tax due on the interest element is properly paid over to HMRC.
And just a point on cheques running out after six months. This is not true - a cheque does not have any form of expiry date.
I have actually written to them seeking clarification but in all honestly I just want to put the IVA behind and carry on with my life and we have made them an offer to keep most of the PPI payment (£4600)
as we want to have our completion certificate before the year is out.
one other interesting statistic is we have paid back £46000 ofa debt of £70000 but our creditors have received a final dividednd of only 16p in the pound meaning GT and Debtmatters have 84% for their fees
