Where are payments kept?

[OPTIMIST12]

Does anyone know if IPs / IVA Companies open a separate bank / building society account to keep each individual debtors payments? Or are there "communal" accounts for several cases? I would like to think that my payments go into a separate account to avoid any possible mix ups!!

On a related point - is it normal for funds to be kept in a standard banking industry current account? As Interest is accrued from the IVA payments over the 5 years it would seem a shame for this money to be kept in an account paying 0.1% or similar when a savings account could offer a worthwhile rate and a much increased amount to add to the total. I am thinking in particular of IVAs with a higher monthly payment where this could total a tidy extra sum.

[Andrew Graveson]

Hi Optimist,
A definitive answer will need to come from one of the IP's, but I'm 99.99% certain that your money has to be kept in a ring-fenced client account and that your IP is required to be insured for these funds.

Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[Adam Davies]

Hi
They are also in high interest accounts
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Skippy]

Who gets the interest?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Adam Davies]

Hi
It goes into the IVA pot and is listed in each annual report.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Adam Davies]

Hi
On the subject of what bank accounts are used I can remember that when I was chasing for my IP to conclude my IVA them saying that they had to wait a certain amount of time to release the money from the "treasury",at least that,s what I think they said,so it could be that the bank accounts are connected to the goverment in some way for security.
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Andy - yet again I think that you have had the wool pulled over your eyes by your previous provider. IPs must keep all client monies in a separate interest bearing client account - I have over 700 of them running at the moment! - and it is a heinous crime to mix client funds.

With regard to bankruptcy cases, these monies are held by the Bank of England, and IP's do have to apply and wait for the monies, but this is usually turned around inside a week.

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

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
Mmmmmmmmmmmm intersting.........wish I had known that at the time.Merry dance comes to mind Mel
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[OPTIMIST12]

Melanie -

Without wishing to be cheeky - would you be able to say if the accounts used are higher interest paying "savings accounts" as against normal current accounts? Do you think this is reflective of the whole IP / IVA position in general?? I was just wondering if it is a general policy to place payments in Higher interest paying accounts or if this varies between compnies?

Please tell me in no uncertain terms if my question is out of order!!!

Thank you very much.

Andy -

Did you ever get an update from your company re the "Treasury" amount?? Despite my efforts to learn about IVAs and BR that one is beyond me!!!

[MelanieGiles]

We try and get the highest interest rate we can - but it is not an awful lot - and the interest goes to the creditors. Our regulators are very hot on the investment of funds and will take action against IPs who are not correctly holding monies.

And you are not out of order. I like your direct questioning and a couple of my clients have recently said how interesting some of your posts are which tend to generate lively debate. The forum would not be a forum without its posters, and I really enjoy responding to all of you.

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

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
No,I think my case worker was getting confused between money held in bankruptcy or in an IVA.
What I did get today was a cheque for £270,apparently this was surplus after that had finished off my case[F+F over six months ago]
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[OPTIMIST12]

Thanks Melanie and Andy for those replies.

What are you going to spend that cheque on Andy you lucky man!!!

[Adam Davies]

Hi
I have had a look at the cheque and it is drawn on an account with my name on,via a private bank.So,in my case they must open a seperate account for each case.
Oh and my daughter is off to Spain with her friends for a few days so bang goes that money !!
Regards
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp