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can i ask how does the repayments work i am worried is it normal for my payments to be paid into the bank account of my supervisor? How do i stand and what happens if he dont pay the creditors what i payed him or even he goes bankrupt?

Hi Lorna and wellcome.
Not positive on this so wait for other answers. As far as i know your supervisor will have a client account in your name and that is where your payments will go until there is enough to make payments to creditors, it is quite normal for them to not make payments to the creditors for a year or more, rather than making smaller payments all the time. If you pay the money to the company account I would imagine they forward this money to a client account.
Hope that helps but wait for other answers.

Ang

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Hello Lorna,
My understanding is that IP's are required (by their regulators) to insure the money that is held on your behalf in creditor accounts. They are certainly not allowed to use it for any business purpose other than that connected to your arrangement.
Don't think you have any cause for worry.

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

That is correct Andrew. Each IVA estate has to pay for a specific insurance policy covering the full amount of contributions into the case, and the IP personally has to take out annual insurance to cover the monies he/she is holding.

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

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Hi
What about in a DMP ? As this is a largely unregulated area where does Joe public stand if they find out that their DMP company has not been passing on the payments ?
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

Hi Andy,

The Office of Fair Trading requires that client monies are distributed to creditors within 5 days of receipt of cleared funds.

If on an inspection visit it was found that this was not taking place it could threaten the firm's consumer credit licence.

There is no requirement for insurance.

If an unscrupulous firm were to use client payments to fund their operations and then subsequently go out of business the client would not be protected.

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

CCCS's own regulation over creditors money say they can't hold the DMP for more than 2 weeks once the debtor have paid it in They return over 1.5 Billion a year.

That seems perfectly reasonable as the administrative task involved is considerable.

We have a seperate client account that is used only for client payments to be deposited. Every Friday the account is effectively cleared to zero with payments to creditors and the movement of fees to a trading account.

I've not seen a considerable DMP company go down in this way. I have heard a couple of nightmare stories where a 'local operator' has remortgaged a clients home and kept the proceeds to negotiate a full and final settlement with creditors. The negotiating individual in these cases has gone missing at this point.

There's nothing wrong with this idea (remortgage and full & final settlement) in principle but if I were to consider it as an option I'd lodge the money with a lawyer if I couldn't be 100% sure my money was safe and insured.

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

Hi
Seems strange that on the strengh of a consumer credit license a person can ask for money to be paid to them directly.I am sure,from memory,that it is relatively easy to obtain a license.Have there been cases of money going missing ?
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

Hi Andy,

I'm not sure it's easy to get a CCL. Certainly any substantial financial problems or previous financial irregularities (on a personal or corporate level) would prevent an applicant from getting a licence. Same for criminal issues. CCL holders going into bankruptcy will lose their licence though an IVA may well be OK.

For companies all individuals with any degree of control will be investigated.

The OFT investigation of applications is not quick; at the moment it will take 3 months from application to getting a licence even if the application does not raise any questions.

This regime stops people for whom their previous behaviour suggests risk from getting a CCL. In terms of future behaviour CCL holders are subject to inspections and visits without notification.

Most good debt management companies would welcome further regulation to protect the reputation of the industry as a whole.



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