Grant Thornton and EIC re PPI

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HST

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Post by HST » Thu Jul 24, 2014 3:53 pm
I am about half way through my IVA and to date GT have been helpful and indeed sympathetic, however I am concerned following recent events.

I did have PPI and have claimed for compensation for misselling in the past but the claims have been declined by Lloyds Bank (late 2012). About six months ago I was contacted by Lloyds again asking for further information ( I had been notified by GT that EIC would be pursuing the claims on my behalf ). I supplied full details of the claims once again, expecting that little or nothing would happen, but am a amazed that there is suddenly an offer c£12k. The offer deducts 20% for HMRC and in the letter states that any compensation will be contra ed against balances outstanding. This seems most unfair and contrary to what I believed to be the purpose of an IVA - i.e. to benefit all creditors proportionally.

I called GT to ask what I should do and was told that I personally had to write to the Financial Ombudsman objecting to the terms of the offer. I emphasise that I was instructed to make the objection personally and that no one else could do it on my behalf. I have done this and am awaiting the decision of the Financial Ombudsman.

Today I received a letter from EIC regarding a letter of authority being required to enable them to claim against HFC Bank plc for misselling of PPI.

I took the opportunity to call them as the letter of authority contained a para saying that 'I was aware that the costs and disbursements of pursuing the action would be payable in full from any proceeds realised.' I wanted to clarify if any costs would be deducted from the Lloyds claim as I felt that the offer resulted from my own attempts to gain redress and that no other company had been party to it. At first the advisor told me that they hadn't done any work on the Lloyds claim but after asking me about the amount offered she suddenly wanted to know the details of the accounts claimed against and told me that I had to send the offer letter to them as they would now raise an objection to the Lloyds assertion that they would deduct from the offer to meet their losses.

I became concerned and asked on numerous occasions what percentage of the compensation would be deducted by EIC and was met with very evasive answers until I insisted and was told that it would be 39%.

Apologies for the lengthy post but I am now worried that I have unwittingly alerted EIC to the fact that an offer has been made by Lloyds and that they will now claim 39% after I have done the work in getting the claim reviewed by Lloyds Bank. I have asked for a sight of the letter of authority that they claim to have enabling them to negotiate with Lloyds on my behalf and evidence that they interceded with Lloyds before I supplied the information that resulted in the current offer.

I do not expect to benefit personally from an compensation, but I do want to ensure that the maximum amount is available for distribution to my creditors and do not want a claims management company syphoning off a fat fee for little or no work.

Any advice would be very helpful indeed.
 
 

HST

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Post by HST » Fri Jul 25, 2014 8:53 am
I have now had a reply from EIC asking for more information, i.e. the account numbers. This seems very strange as I would have thought that it should be clearly marked on my file if, as they claim, they had done any work in claiming compensation. I'm losing all confidence in the process which seems more for ensuring that those involved skim off as much as possible in fees as in satisfying the terms of the IVA.

Has anyone had similar experience with EIC?

The more I read this forum the less confidence I have in Grant Thornton and seriously wonder if I should cut my losses and go bankrupt now rather than face more years with an uncertain outcome.
 
 

Michael Peoples

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Post by Michael Peoples » Fri Jul 25, 2014 9:28 am
There have been problems with PPI over the past few years and there are still arguments over whether a creditor can offset their debt or not. If the bank does offset this leaves nothing for anyone to receive a commission from but does reduce the overall debt thereby increasing the dividend to all creditors.

Do not give up on the IVA when you are over half way as this could lead to a three year income payments order and your credit file will be damaged for much longer. Personally I would fill out the forms and send them back. Let GT, EIC and the creditors sort it out which hopefully will be in advance of your completion date.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

HST

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Post by HST » Wed Jul 30, 2014 12:05 pm
Thank you for your advice Michael re stopping payments which is noted. Re my issues with EIC, I have now had confirmation that they have not done any work in connection with the offer of compensation from Lloyds Bank plc. I have forwarded the offer letter as instructed and now they will get nearly £4000 from my efforts to get redress - the whole way this works seems so inefficient and basically corrupt that I have decided that the best thing for me personally is to ignore it and let them sort it out themselves. I'm not going to benefit in any way from the compensation so I'm not going to expend any effort in per suing it.
 
 

Michael Peoples

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Post by Michael Peoples » Wed Jul 30, 2014 12:32 pm
I think that is the right approach. Let them sort it out and just get on with your life as there is nothing in it for you anyway. Why bother stressing about the PPI since it is like getting indigestion despite being banned from the feast!
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Sharon.10

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Post by Sharon.10 » Thu Jul 31, 2014 4:30 am
I have just recieved another form from the eic to fill out I am with gt as well they are still chasing after ppi as far as I am concerned my iva is finished I wont be filling out any more forms.
Last payment made August 2012 Certificate of Completion recieved 15th of Novenber 2013.
 
 

HST

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Post by HST » Thu Jul 31, 2014 1:45 pm
one last follow up - another letter from EIC asking me to continue my action of complaint with the FOS. It really does appear that they expect me to do all of the work while they pick up a fee for the results. The whole process is just ridiculous, BUT, I'll play along doing the minimum to demonstrate that I have fulfilled any obligations on my part and hopefully this will speed the conclusion of the iVA.
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