Please help: my brother has made 57 payments on his iva. He approached Grant Thornton 2 years re claiming back ppi. They put him onto a claims co, which I didn't agree with, because I could have completed the forms & saved him 40% fees. Anyway,the paperwork did say that although some payments may go to the creditors, you may be awarded some funds you can keep. Monies was sent to G T & he got a chq for £3k. At the time, he was in genuine hardship as the IVA had been temporarily suspended due to him having an operation. He was trying to survive on SSP & needs a car for work and vital repairs which he has receipts for,come to almost £1000. Also car insurance won't let you pay monthly and he owed me £500 for that. I believe now PPI comp is classed as an asset, even when not part of the IVA. I feel this is wrong as it would have been disposable income avail to him when he took out the loans & if the premiums had been lower he may have been able to afford the payments. There is no evidence he would have saved that income at the time, so they are benefiting now from breaking the law back then. Anyway, Grant Thornton are now demanding immediate repayment of the £3000 or will fail the IVA. He has papers to sign to RBS that will award him a further 10k in PPI not in the IVA. Why the original claims co recommended by GT did not claim it, I do not know. Taking this future PPI into account he has been 'let off' by his creditors for 23k but the PPI comes to about 16k. you would think he would now only owe about 7k but with the claim co cut and GT fees it will probably be more like double that. My questions are: can you keep any ppi awarded if you can demonstrate hardship and just offer to pay the 8% interest part of it? Was the 'PPI is an asset' ruling in place 2 years ago? Is it worth claiming the RBS PPI back if they are going to fail it (but not before taking their 15% cut?) I would really appreciate the best thing to do. He has until 8th November to respond.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Sandra.v
Please help: my brother has made 57 payments on his iva. He approached Grant Thornton 2 years ago re claiming back ppi. They put him onto a claims co, which I didn't agree with, because I could have completed the forms & saved him 40% fees. Anyway,the paperwork did say that although some payments may go to the creditors, you may be awarded some funds you can keep. Monies was sent to G T & he got a chq for £3k. At the time, he was in genuine hardship as the IVA had been temporarily suspended due to him having an operation. He was trying to survive on SSP & needs a car for work and vital repairs which he has receipts for,come to almost £1000. Also car insurance won't let you pay monthly and he owed me £500 for that. I believe now PPI comp is classed as an asset, even when not part of the IVA. I feel this is wrong as it would have been disposable income avail to him when he took out the loans & if the premiums had been lower he may have been able to afford the payments. There is no evidence he would have saved that income at the time, so they are benefiting now from breaking the law back then. Anyway, Grant Thornton are now demanding immediate repayment of the £3000 or will fail the IVA. He has papers to sign to RBS that will award him a further 10k in PPI not in the IVA. Why the original claims co recommended by GT did not claim it, I do not know. Taking this future PPI into account he has been 'let off' by his creditors for 23k but the PPI comes to about 16k. you would think he would now only owe about 7k but with the claim co cut and GT fees it will probably be more like double that. My questions are: can you keep any ppi awarded if you can demonstrate hardship and just offer to pay the 8% interest part of it? Was the 'PPI is an asset' ruling in place 2 years ago? Is it worth claiming the RBS PPI back if they are going to fail it (but not before taking their 15% cut?) I would really appreciate the best thing to do. He has until 8th November to respond.
A couple of years ago PPI wasn't identified specifically and most arrangements do not refer to it by name. However, it is an asset and an asset ( by whatever name) is captured by the IVA unless specifically excluded.
In some cases GT have agreed to allow the debtor to retain the net of the 8% interest ( after fees), but the principle amount belongs to the IVA.
You can argue hardship and the IP might agree to some relaxation, but very rarely.
If you had handled the claims yourself you would not have saved your brother 40%, but would have saved the creditors 40%!
At this late stage it would be insane to allow the IVA to fail and I would suggest that your brother attempts to arrange the repayment by an extension to the term, thereby paying the arrears back on a monthly basis.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It may be possible to get creditors to forgive the default but it will require a variation. He should provide evidence of the illness and a breakdown of what happened the funds and I am sure creditors will not seek failure of the IVA.
Thanks so much for your help, he is going to offer to repay it by continuing his payments until it is repaid, but was hoping to get a reduction with receipts for car repairs etc. Due to the 2000 word limit on my initial post, I meant to say, that by claiming it himself, the creditors would indeed get 40% more, but that would help him if it DID fail, plus, if the companies offset it, they take the lot and he still has to pay the fees! So how are Grant Thornton acting in his best interests?
The financial sector of this country is riddled to the core. He's had that cheque for 2 years, but they wait until the last possible minute so that they get as much fees as possible. Why not issue a breach at the time? The paperwork he was sent by the claims company clearly stated that although his creditors would be paid he may receive some monies to keep. He still has it as evidence. He used that money in good faith and now they can move the goal posts? He should have gone on a debt management plan with hindsight, I'd never recommend an IVA to anyone. But I do appreciate your feedback.
Hi Sandra. It is true an IVA is not the solution for everyone, but, for every disgruntled poster on this forum there are thousands who are happy. Much depends upon who you have working for you and, I must say, the "factory firms" are far from the best. However, it is these firms who are favoured ( and, in some part, funded) by the creditors themselves ---- like putting a fox in charge of the chicken run !
The usual stance with claims companies is that they are instructed by the Insolvency firm and the fees will have to come out of the IVA estate if offset is applied. Instructing a firm yourself is fraught with dangers and, if the IVA firm allow it, far better to do it yourself. That said, I am afraid to admit that I would begrudge working to claim monies that will be swallowed up in the IVA where the IP still gets his / her cut !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
He didn't get the choice Foggy, GT told him it was worth claiming and yes, he may get some monies to keep, and told him they had a company that handled it. Probably got comission for the recommendatio. Wish he'd taped the conversation. I've worked in a high street bank for 30 years and offered to claim it back for him, but he wanted it done through the right channels so as not to risk his IVA ironically. God knows what he'll do if they fail it. Sorry to sound bitter but I am. He's never ever missed a payment.
Unfortunately the company GT use ( in common with other large firms) appears to be staffed by rejects from Monkey World.
You have every right to feel bitter ... the magnitude of incompetence the PPI saga has unveiled leaves a bad taste with everyone it touches.
I still wonder why many firms still deal with PPI and manage to complete within a couple of months, whilst the "big boys" can't even deal with their post in a timely manner.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Totally agree Foggy..I think this PPI saga will rumble on, but lol at your Monkey World observation. I'll get a letter out to GT tomorrow and see what happens. Thank you.
