My F&F was accepted on 5th Jan 11. Funds transferred to my IP Office 2 days later. After contacting my IP Office this week, I was advised that it could take as long as April to get my completion certificate.
Came in from work this afternoon to a letter with enclosures from IP office advising that that they had conducted a review and believe that there are some charges on my agreements for PPI that may have been mis-sold. They have requested that I fill in the Claims Pack to reclaim any compensation from mis-sold PPI and also to sign the PoAttorney enclosed and return it to their office.
I rang the IP Office a few minutes ago, PPI Claims section and was advised that this is a new rule in all insolvency cases. I then asked him who will be benefiting from this money, they will get 25% and the rest will be sent to the Creditors. How can you issue a completion certificate and still make a claim for PPI?
I then questioned him as to how long this process will take, could be from about 6 weeks to 6 months. Would this hold up my completion certificate? NO.
Forum members and Experts please advise me, is there any sense in claiming PPI from my creditors to be handed back to the same creditors?
Why was this not brought to my attention before my offer of F&F, as the PPI refund would have reduced my outstanding debts considerably.
And lastly how could you get a completion certificate, if there is still outstanding issues regarding claiming PPI and then disbursing this money to the creditors?
I've not heard of this before as I always thought that it was up to you to claim PPI if you wanted to.
Hopefully one of the experts can advise.
What company are you with?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
PPI is a separate issue to the loans and can be claimed well after the loans have been settled. I would have thought (and I am sure one of our experts will correct me if I am wrong) that the PPI issue has no relevance to a recently completed IVA. Once the details have been wound up in the usual manner YOU would be free to reclaim PPI, if you so wished, and retain the money yourself.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As I said - I've not heard of that before. I know if you choose to pursue it whilst in an IVA then it probably will go to the IVA but I've never heard of being made to claim it before.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I wonder if this is new to IVAs generally or new to your firm! I cannot see how a new rule could be applied retrospectively without your permission. An iva is after all a legal document and should be managed within the terms it was written.
I guess the sense in it is that where one creditor has mis-sold you PPI they are receiving a dividend on the debt and the PPI; whereas this way the PPI is deducted from your debt and the dividend is split without reference to it so other creditors receive a greater share of the pot. All in all, it's actually quite a good idea if done in the first year to establish creditors' debt levels.
But ridiculous to introduce it at this stage. I would ask where your IP where he gets the authority to make this demand.
Be interesting to see what the experts have to say about this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hmmm yes! Sounds to me like greed is driving the IVA provider to be scant with the truth - 25% is a massive fee by anyone's standard. Multiply that by every IVA they manage.
I'd like to know what company has insisted on this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks.
If this matter had originated earlier on, even last year prior to my F & F offer, I would have reclaim the PPI knowing that it would have reduced my debt. But why now?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
This is new to me and I would be interested in Mels take on this. I can't see how they can issue a completion certificate and then retain any monies after this from a PPI claim.
Don't rush into anything just yet, wait for an expert response from Mel
Regards
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Just rang the IP's office for further clarification and my original posting of yesterday stands.
I once again enquired whether the PPI claims would prolong the Closure and was told no. So I can post the completed forms back to them, may get my completion certificate abt 3 months down the line.
Should the PPI claims be successful, they keep their share and the rest is pass on to the creditors.
And yes, it appears to be a new thing in IVA's but cannot find a relevant posting or literature regarding this anywhere on the internet.
Nevertheless, I explained that if the matter regarding PPI claims was pointed out earlier, prior to my offer of F&F, I would have made the claims and was then advised that it is optional.
Unfortunately, they only recently noticed that I had PPI on some of my debts.
The letter sent from the IP office, yesterday should have indicated that it is optional.
