So like a lot of you we too are transfers from PJG to CF, and have been waiting for contact, which finally arrived today. The letter we received this morning from CF, doesn't say anything about change to T&Cs but does say on the form ‘’RESOLUTIONS FOR CONSIDERATION’’ Oh and definitely no communication received on our side either, despite their claims to the contrary.
We have had a lot of changes this year with finally getting employment from a two year redundancy. We’ve had a payment settlement on an injury claim that we are still waiting for answers to from Sept (PJG). Hubby has just come out of hospital yesterday, so obv in pain and no patience. Hubby and I have already had one argument this morning based on our different interpretations of the points that CF are making....please can anyone help shed some light on them.
The say they want us to agree to a variation meeting with the creditors to bring terms of IVA in line with those already administered by CF, at no cost to us. That the effect of the variation will include:
1. To ensure PPI is properly dealt with and agreed by your creditors. That there was no agreement previously leading to ambiguity. Non inclusion of PPI within an IVA proposal requires formal disclosure to creditors as it is a material asset. Creditors will be asked to consider that you keep a proportion of any successful PPI win. (My interpretation...they want to include in the contract a clause that says we will claim for PPI and that they will try to give us a portion of it...that previously its not mentioned in the agreement.
2. To increase my discretion to admit claims into your IVA where the creditor has stated the amount owed is greater than that in the original proposal. This will avoid any potential breach of the terms. (My interpretation...they are saying a creditor can change the amount they agreed you owe, and that CF want the ok to accept it without letting you know, that if you don’t it could fail the IVA)
3 To ensure that the operation of a creditor gateway for your case is maintained, where creditors have online visibility of your arrangement and can help identify where they need to submit a claim. (My interpretation...they want to put it all online so that a creditor can look and then decide if they are claiming the right amount, brings it back to point 2, that then says it can be changed).
On the part they want us to sign it also says a couple of other points that I could do with understanding better.
* The debtor be authorised to claim 50% of the net realisations after costs from mis-sold PPI realised during course of IVA. (so they are saying they want us to claim half the money...does this mean for us to keep or that this is likely the amount that will be paid into the IVA)
* Supervisor has the discretion to admit claims of up to 115% of the value provided for on Statement of Affairs (is this the 15% variation clause we already have that allowed Melanie to increase or decrease by that amount)
*Supervisors remuneration is changed to 23% of realisations. (does this mean they are increasing the amount they charge...if so, and there is supposedly no change to our payments, surely that means the creditors are getting less money, so how is that good for us?)
Sorry for all these questions, I have searched through the forum with Creditfix as the search word, but there is a lot to go through, and doesn’t necessarily answer these questions.
The one thing I do get from a lot of other comments is that they aren’t signing the new T&Cs, but I worry what I would need to say as to why I am not signing it.
Any and all help and answers will be a huge help, thank you all so much in advance for your wonderful advise. xx
I am not with CF but I would be wary of point 1 as they could get you to sign and then state the creditors wont allow you to keep any so the carrot they are dangling to get you to sign will be taken away. but they then have the right to claim all PPI going back to the midst of time and by doing possibly take longer and your IVA will be kept open until it is complete.
The other point someone raised previously was if they increase there fees if you are on track to pay 100% back it will increase the time as there increase will be paid before the creditors so you wont hit the 100% at the same time
Last edited by Pandy on Sat Dec 20, 2014 2:49 pm, edited 1 time in total.
If life is what you make it, I must have been in a strange mood when I made mine
If you get asked why you are not signing just state that you cannot see any benefit to you or your creditors and you would like to remain on your original T's and C's.
If life is what you make it, I must have been in a strange mood when I made mine
1) They are seeking to formalise the already assumed right to include PPI as an asset. If this is ever overturned in the future agreeing to this will mean no refund should PPI not be deemed an asset as you would have specifically pledged it.
2)IP already has such discretion just wants to be able to use more of it.
3)They don't need yourt agreement as to how to administer your case -- must be an underlying reason here.
And in blue:
1)I read this as they are considering allowing you to keep 50% of PPI claims ( after fees and costs which are not specified). This must be the "carrot".
2) Supervisor probably already has that discretion.
3)Yes, they want to increase their fees -- this WILL cost you if you ever get a windfall sufficient to pay all the debt as they will also take 23% costs, rather than 15%.
My problem with this is you can sign to agree to these clauses, then at the creditors meeting the creditors can say yes we agree to the fee increase but not to the debtor having any PPI back --- so taking the "carrot" away when you are unable to object.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I got the letter today, I am not signing and if they ring me they can answer the numerous questions I have emailed them before I tell them to very politely do one on the new T&CS Why should they get 8% more in fees than someone like Mel or Michael?
Why would creditors claim more than whats in proposal?? I thought all figures were confirmed in chairmans report at the start then frozen? Ami being thick here?
Sometimes claims vary a little and there is always the possibility of a creditors suddenly coming out of the woodwork, having been overlooked initially. Also, if HMRC are a creditor their claim cannot be verified until the year end of the financial year included.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
In some IVA's mine (was a few years back now) I had to realise 40p in the £ due to debt with HSBC. Assume I was going to realise that with Melanie but then got transferred to CreditFix surely their higher fees could in turn cause my IVA problems assuming anyone these days has a minimum dividend to achieve.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Did Mel/ Clifford Watts ever state about PPI share? I just assumed any claimed would all go to IVA anyway if there was provision for us to keep half surely that stands now?
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lesley_
In some IVA's mine (was a few years back now) I had to realise 40p in the £ due to debt with HSBC. Assume I was going to realise that with Melanie but then got transferred to CreditFix surely their higher fees could in turn cause my IVA problems assuming anyone these days has a minimum dividend to achieve.
This is true, Lesley. You would also get clobbered if you hit 100% of the debt, as there would be even more fees to cover after that !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We dont have any hidden creditors and dont have debt with hmrc. Mel stated ppi would be treated as an asset so always assumed any woukd go to iva. Will take more than a share of any poi to make me sign these. I am happy with t&cs which mel spent ages going over and speaking personally with us about.
My dividend is only 11p. So, if fees are increased this is going to go down even further. How on earth can creditors justify this? If fees go up then to realise the amount owed by the end of the term the IVA would have to be extended, wouldn't it? Or am I missing the point here?
