Ginger.
Thanks for that as it is what I would have thought and if applied to IVAs means post IVA PPI revert back to the creditors in the IVA.
Tiger.
You raise some very valid points and there has been some proper healthy debate about a number of issues. You clearly have a very good understanding of personal insolvency [and the pitfalls] and these issues need discussed and addressed.
Sponge.
In theory it probably could but I am by no means an expert on insolvency law and the bulk of what I post is either my opinion or policy we have implemented following advice from regulators or legal opinion. But given that the asset remains that of the O.R even post bankruptcy I see no difference post IVA.
I agree with Michael - and so do my own lawyers! Wretched PPI reclaims - wth this and the ongoing VAT issue, I am sure that all of us in the profession wish we did not have to pursue such issues, but unfortunately we have our duties to carry out, however unpleasant they may seem to our clients.
I think it would help if the industry could come to a settled view on this - or at least closer to one. At present, a major IVA provider like CCCS doesn't even believe there is an imperative to claim whilst the IVA is 'live' - let alone post IVA. Where does that leave the individual legal advice individual IPs are getting and passing on as 'gospel'?
I totally agree with you Melanie this had opened up a whole new can of worms and certainly one we could all do without, both IP's and clients. I for one will be happy to see the back of this in all honesty.
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.
It is easy to see it from that perspective Andy, but no more motivation that rooting out undeclared assets in bankruptcy or liquidation cases and thus benefitting from higher fees.
Perhaps the main beef from a lot of people on this forum is the sharing of commissions between the claims management firm and the IP firm, and perhaps the perceived lack of transparency about these arrangements. We all have differing views on this, and personally I would not accept commission from the claims company I have chosen to engage - and all of my clients are very free to appoint their own company should they wish or pursue the claims personally.
But I would expect to be remunerated from the recovery of the asset or windfall at usual rates, and creditors are firmly in agreement with this.
You're quite right Andy, and in my experience if the legal advice isn't supportive you get different legal advice. The real windfall here is going to IVA firms and claims companies - and the creditors get what's left over. It's all being dressed up as a'duty' to creditors, but most of the companies clam up when it comes to transparency and their duty towards their customers.Have any of them been open regarding their financial arrangements with claims companies charging up to 40% commission ?
We are obliged to investigate all assets of the IVA which includes PPI reclaims and excessive credit card charges. Otherwise we would be failing in our duty to creditors to maximise the return.
IP firms will receive a percentage of fees as agreed with creditors where the fees have not already been capped. However every case has to be looked at which requires extra staffing hours and not every case will receive a rebate. Some rebates may be very small while some may be substantial but overall it will not be the cashcow some people think.
I'm sorry Michael, and this is obviously not personal, but some IVA companies have contracted with claims companies allowing them to charge 40% commission. How is that maximising returns for creditors ? The same companies resolutely refuse to say what , if any, is their financial arrangement with the claims company. What is the ordinary customer meant to think ?
Yes "some" IVA companies - but not all. Please stop tarring us all with the same brush. Your comment "the real windfall here is going to IVA firms" is simply not true and it certainly does not relate to my practice.
Michael and I cannot speak for other IP firms, only our own.
The only issue that I would be concerned with is how it affects Jo Publics IVA from completing.If it is going to be like the VAT issue and cause delay and worry then I do not welcome the PPI claims, if, however, it doesn't affect the closing of the IVA then I personally would have no issues with the IP reclaiming the PPI and would have no interest in the costs involved as I personally would not expect to prosper from any claim whilst still owing my creditors money.
Don't worry Tiger I amn not taking it personal and it is a valid debate. I cannot say what commission firms receive [if any] but there should be transparency and these commissions disclosed. The IP firms have to appoint agents as they are not licensed or qualified to reclaim and the clients also do not have the experience to maximise any reclaim against a creditor.
I agree with Andy -- but am in the fortunate position to have a few years to let them play with various claims. I do think that with PPI there should be a sensible cut off point beyond which (ie too close to the end of the term) the IP cannot pursue a claim. Common sense should prevail on all sides where this has started right at the end of people's IVA's and, going forward for as long as this lasts, the IP should be expected to conclude PPI claims before the mid point of year 4.
VAT is a different issue as it was dropped upon all from a great heightand should sort itself out naturally.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I'm actually living this at the moment as are many others, re PPI, hoping to complete etc. I totally agree with you Andy, my creditors are welcome to any money they can get from the claims if there is any but this is becoming increasingly stressful as it's looking more and more like i won't be completing in September because of:
Back logs in debt companies work load
PPI
HMRC
The list will probably have something else added to it before then, this is just so frustrating and at a time i could really do without as i'm going in for surgery to my arm tomorrow, grrrr.
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.
