ppi post iva

[Broke of London]

The EiF fees are a joke! Their clients are being mugged off because they have a duty to comply with their IP/IVA terms and have no recourse to the competitive market...essentially EiF have a monopoly and are making hay while the sun shines and having a good old laugh at us!!!

[size5]

Tiger Tiger and DG make valid observations. Dawn makes the point that she paid back over 5 years £6,720 less than she owed. In that time it is not unreasonable to assume that she saved many thousands of pounds in otherwise contractually payable interest. As she couldn't afford her payments, if she could then she would not have been eligible for an IVA anyway, then, whilst she may well have been entitled to claim for mis-selling of PPI now or in the recent past if she had not chosen to enter into an IVA 5 or so years ago, she would now undoubtedly have been in far more debt. And not debt free as she is now. Her IVA has served her well, and did exactly what it promised to do, so I personally do not see any grounds for complaint.

I do see where people are coming from as to large PPI claim fees in an IVA however. I cannot deny that there are questions, awkward ones for some firms, whereby if the PPI claim industry is not necessary, as seems to be the common view, at typically 25% commission on recoveries, then it is much harder to defend when 40% becomes the norm figure.

Regards.

[TigerTiger]

Daniel, we know DFD and Payplan both use EIF. As DFD is part of a public company, it was declared in the PLC accounts that they expect to do well out of mining their database for PPI claims. We also know Payplan contracted with EIF on the basis of EIF charging 40% commission. Neither DFD or Payplan has been prepared to explain anything publicly of their financial arrangements with EIF. OFT rules, however, require both companies to give that information to their customers.I hope their customers force the issue.

[dawn20]

hi again i know that the iva solved the problem for me the grouse i have is that when you enter an iva your first two years repayments normally are eaten up with the fees etc then the balance left is the creditors for the other 3 years there are lots of what ifs and maybes but my point is if there had been no ppi my both my debts then i could have afforded to pay my debts when i did try to claim i was told sorry it does not cover this!!!!!!!!!!!!!!!!!!!!!!!!!!!! what i am angry about is that so much money is not going where it should are you telling me that my debt over the five years would have had in excess of £6,000 one was a loan with the intrest already calculated and was for £15,000 but hsbc added an extra £2,374 on at the hearing and i had already paid the loan for two years . the second was a credit card and this had £9,000 approx on this yes there would have been interest but would it have needed £6,000 in interest????????? at the time that the iva was being drwan up i needed help i know that but one of my creditors did put in the right amount owing my bank loan was not in arrears but once the iva went through and i saw the papaers it was too late so my grouse is yes i,m annoyed i did as as asked and am still owing money even though i have paid in over and above the orginal debt can you tell me what is wrong in feeling this way???????????????????????????????????????????

[MelanieGiles]

You agreed those fees - the amount, the basis and the timing of them Dawn when you signed the IVA proposals, or agreed the creditor modifications. These days we are paid at the same time that creditors are, in general - in my firm that actually resulted in us paying ourselves more frequently, as our policy was only to draw fees at the end of each year or when we were closing a case.

I fully understand people being confused and angry about their IPs not being transparent about the level of "hidden" charges, but does anyone actually have any experience of an IP refusing to provide such information? If so, that would definately form part of a complaint.

[dawn20]

hi melanie i understand where your comining from in my case it was correct i was told there would be fees and i know you as ips have to be paid for your service . with me it was a bit of a shock to find £100 per month and the one off fee of £2500 for nominees fee add this to the vat etc ment that before any ppi went in it stood at around £8,500 as the debt company did not put a break down in until my first review i was not awre of the scale of fees ie nominees fee that was never explained . its been a struggle over the five years my payements were set from the outset at£338 per month from a salary of £11,000 before tax it didnt leave me muchto live on i didnt default this is why i feel so angry at expecting more being paid off with the ppi and not taken in fees please understand why i pose these questions ,ppi although welcome has become for me a mine field thinkindg mre debt being paid back but in reality eaten up in fees and commission in my case the creditors will be lucky to get approx £4000 if their lucky yes an increased dividend but i feel nowhere near enough

[TigerTiger]

Dawn, I don't want to add fuel to the fire but your IVA company will probably retain some of the VAT rebate as well. I do understand why you're so angry. As it turns out, on the basis of your 'true' debt you needn't have gone into an IVA in the first place and having done so you've paid into it more than you originally owed because of fees you've been kept in the dark over. Please try and find out what happened to the PPI commission and share the information with us. In your situation , it sounds like excessive PPI commission will have resulted in you paying more than you need have done. However, it will also have meant - with so little going to the creditors - that in the event your IVA had failed ( which 1 in 3 to 1 in 4 do ) the balances you would have been left to pay still would have been much higher than they need have been. For some people that will be the difference between going into a debt management plan on failure of an IVA or going bankrupt. Thank you for highlighting the issue.

[iamfubb2]

Seems to me that IVA companies and many IP's are not giving a full and frank explaination of how fees and disbursments are made at the start of the process.Was thinking of starting one up shortly but, after reading several posts of people thinking they have been "ripped off" may take my chances with CCCS and a DMP.I know nothing is for nothing but,clarity and information is paramount!

[Daniel Griffiths]

Hi Dawn

Can only echo what Tiger has said to you, your situation is not unique many are in your position details of the PPI commission split may make very interesting reading please share it on the forum

[moneyprobs]

I am still failing to see what bit of legislation has actually changed the ppi situation.

I have trawled through some post's from a year or more ago and found some post's from individuals and professional's. Their stance on the topic seems to have changed somewhat.

I believe anyone who has taken this advice could potentially be in real trouble regarding the possibility of any monies being received deemed as an asset of their IVA, even more so if the money has now been spent.

Some Examples:

MelanieGiles
IP





37805 Posts
Posted - 06 October 2008 : 09:51:40
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The refund of the insurance policy is something which should be shared with all creditors as a windfall, but as your IVA has now completed the money is yours to keep.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp



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Edited by - MelanieGiles on 06 October 2008 12:44:20


James Falla
Forum Expert





467 Posts
Posted - 01 July 2011 : 16:30:32
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Hi Molly

As has been said, if you make a claim for PPI mis-selling while you are in an IVA, then any money you receive while your IVA is still running will be treated as a windfall and will have to be paid into your IVA as an extra payment.

Having said that, it is likely that a lot of PPI claims will take a considerable time to process. As such, if you are in the last year of your IVA the likelihood is that you would not receive compensation until after your IVA is completed in which case you get to keep the payment.

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James Falla
www.beatmydebt.com
Personal and business debt solutions


Topic

Benjamin.jw
New Member





1 Posts
Posted - 02 October 2011 : 12:17:37
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I completed my IVA early in December 2010 following a full and final settlement from my father. I have now put in a PPI complaint and have been awarded £3500. Do i get to keep this money or will it be applied to my old accounts even though the IVA completed early 9 months ago?

ginger3232
IVA Artisan





United Kingdom
2615 Posts
Posted - 02 October 2011 : 12:21:24
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If you have the completetion certificate - then you are free to use the money as you wish


MelanieGiles
IP





37805 Posts
Posted - 02 October 2011 : 23:27:41
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If the IVA has been concluded, there is no reason why the money should not be sent to you if you are entitled to a reclaim.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

Where,when,how,why,what has changed and what are the new rules/guidelines ?????????

Post's of late seem to be quoting that some monies received post IVA can deemed as IVA assets but no-one can seem to confirm what it includes PPI,inheritance,gifts etc.

[Broke of London]

Iamfubb2 there are people who entered the process without a full understanding of what it involves but the vast majority will say an via was the best decision they could have made. Take the time to research all your options before making a decision based on another person's experience. There are people on here who are anti-iva for their own reasons and these may not reflect your circumstances.

[Adam Davies]

Hi

Remember the monthly amount you will pay into an IVA is based on your disposable income, this is unaffected by PPI claims, VAT, and anything else that becomes flavour of the month.

Yes there are questions to answer but fundamentally an IVA is a wonderful solution for thousands of people in THE RIGHT circumstances, fees etc are something to be battled out between IPs and creditors because generally they will have no affect on anyone who runs a successful IVA.


Explore all options and do pleny of research before opting for a solution

Regards

[Niobe]

Well said Andy.

[TigerTiger]

Moneyprobs, I see the dates on some of the posts you quote are from only about 6 months ago which is a bit worrying.

[Broke of London]

My stance on this has never changed as it is based on my moral code. A lot of professionals however cannot allow their personal thoughts to cloud their professional advice and it seems that changes in advice come from whether PPI is deemed a windfall or an asset. The former would not be payable to the iva after closure while the latter would as the asset in the case of ppi pre-existed the iva. I don't want to put words into anyone's mouths but that's how I see the change of heart. Quite simple really and the result of ongoing legal advice and clarification.