I apologise but this is a long response to catch up with posts upto yesterday - I am currently out of the UK.
Kieser – it may seem from looking at the forum that ClearDebt are holding off investigating PPI until the end of the IVA but that is not the case.
There is a huge amount of work required to be able to review each and every ClearDebt client’s case and I hope you can appreciate the logistics involved in recalling every hard file from storage, scanning, reviewing, interviewing clients, submitting complaints to creditors and having systems in place to track each case and recover money.
Given that the advice we have is that this is something we have to do, we are unable to issue completion certificates until all of the work has been undertaken and all compensation for PPI mis-selling has been realised.
This obviously creates a backlog of work and completions which need to be processed which we are working through as quickly as we possibly can.
Unfortunately, and with some justification, there are going to be a large number of disgruntled clients who are unhappy with ClearDebt.
We fully expect and hope to have reviewed all of our cases by the end of January – all of the requested authorities for mis-sold PPI will have been sent out this side of Christmas.
The confusion around the issue stems from different firms taking different approaches which in turn perhaps make ClearDebt clients feel as though they are being treated unfairly.
I believe ClearDebt are well ahead of other firms in terms of policy, practice, systems and processes with regard to PPI mis-selling and the difficulties we have experienced will soon be felt by other IPs who perhaps are not currently acting correctly or appropriately.
Given that all IPs seem to be in agreement that mis-sold PPI compensation must form part of the estate (subject to the proposal), it is my opinion that I am unable to issue completion certificates until it has been established that either there are no funds available from PPI mis-selling or that all compensation has been recovered.
It has been argued by some that I could rely on the Supervisor’s powers post IVA and issue completion certificates and subsequently investigate PPI mis-selling under the provisions of clause 14(1) in the R3 conditions and 10(6) in protocol, but these clauses are specifically designed to allow the Supervisor to act if information does not come to light until after the IVA has concluded – not to fail to fulfil the obligations whilst still in office (ClearDebt has also been advised by some creditors that they expect us to rely on these powers to go back historically to recover PPI mis-selling compensation for closed cases but this is perhaps one for another day).
ClearDebt have drafted a proposal which is currently with our lawyers which may enable us to look at issuing completion certificates earlier (which I’m sure will be mirrored by other firms if successful) but any movement on this will not be overnight.
In the meantime, I appreciate that a number of clients are going to be affected and each of them have my sincere sympathies. However, from my and ClearDebt’s point of view, there is nothing we can do other than to continue to clear all backlogs, deal with any complaints as promptly as we can and liaise with creditors in an attempt to deal with the issues which are being faced by every company within the industry.
Peejayel – to all intents and purposes the IVA ends at the point your completion certificate is issued. However, where you have repaid less that 100p in £ plus statutory interest your Supervisor (former) would still be required to realise any assets which should have been realised during the term of the IVA.
For instance, PPI mis-selling would need to be paid to the estate as the funds were realisable during the term of your IVA; a lottery win following the issuing of your completion certificate would not need to be paid in.
In the case of clients whose IVAs have had to be kept open purely for the purpose of investigating mis-sold PPI, ClearDebt are informing creditors that the only reason for the case being kept open is to recover this specific asset and that no windfalls, inheritance etc during this term will be paid to the estate.
Heretoday – as others have said, this is going to be best dealt with away from the forum. I will speak to Tom Oconnor today and organise the review as per the details of the case and Tom will contact you directly within the next 48 hours.
Muggins - there seems little point responding or indeed commenting to someone claiming I am unprofessional for responding to a point.
I hope the above helps.
David
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
