Back in mid December 2013 I had a F&F settlement offer accepted. The terms of that offer were that (1) I'd pay the amount within 30 days and (2) final administration by my IP (Payplan) would take a maximum of 6 months.
I adhered to those terms by paying the money within 7 days. Having now chased Payplan for my completion certificate, Payplan are now saying that the amounts are being distributed to my creditors (just under 5 months since I paid the F&F !?!) and saying that they cannot give me any assurance that my completion certificate will be issued within 6 months of my F&F offer being accepted (i.e. that they may not meet the terms of that offer).
It seems to be a case of one rule for us and another for our IP's - if I hadn't paid the money within 30 days Payplan made it very clear to me that the F&F process would terminate, yet what comeback/consequence is there for Payplan if they don't adhere to their side of the agreement ?.
My contract states that the IP could take up to an additional 3 months from the end of the IVA to finalise administration(or words to that affect). We are now 9 months after a F&F and still no completion cert.
So, the query for the experts out there is what if any legal recourse is open to us "minions" (against our all powerful, rules don't apply to us IP's) in these circumstances ?.
There have been problems with VAT and PPI issues but most of these have been resolved. However a modification proposed by a creditor could potentially impact on your IVA even for something that is beyond your control so ring your IP directly and tell them the file needs closed otherwise you are potentially in breach. There may have been a variation called or your IP has some power to extend but this needs clarified.
You are entitled to this information and given that Payplan are one of the firms that the banks recommend to their clients and who are funded by the banks it is only fair they answer your question.
Thanks Michael, although I'm not quite sure what I can do, or why I should be expected to do anything, when the clause which may be breached is one that only my IP is responsible for - it isn't like I have done anything to delay the final administrative process nor that I could do anything to secure the completion of that process.
Why should I have to utilise my time to chase up my IP for their failings ? - surely the playing field should be evened up so that if an IP breaches an agreement they should be fined/pay some compensation to both creditors and the person who is awaiting closure of their IVA ?.
There are times that creditors propose modifications that are outside the client's control which is unfair to say the least. In these circumstances the IP should deal with the modifications at the time of the meeting or propose a variation to avoid a breach.
The IP can have some discretion to extend provided it is within the terms and conditions but there should be no unnecessary delays. You do need to speak to the IP so perhaps send an email detailing your concerns and maybe this might get them to close the file down. Each firm will have complaints procedures which normally start with a complaint being made in house so check the website for details of how to complain.
Thanks, when the F&F offer was originally put to the creditors Payplan sought (and got agreed) a 3 month extension to the initially proposed 3 month period for completing the administration process, so they've already doubled the time for compliance.
I'll do my best to take this further with my IP but until there is something in place to 'punish' companies who behave in this way the whole system is simply skewed and unfair.
There may be a genuine reason for the file not being closed down as I do not know the case and Payplan may have their reasons. However I do agree that too often clients are left dangling not knowing what is happening or why and this is not really good enough.
We try and close files down as quickly as humanly possible because there is no benefit to anyone in keeping them open. It only leads to resentment and more [unpaid] work so it is just not worth it.
I agree they should be penalised for every month they go over the stipulated timescale when F&F agreed, what you also have to remember is they are no longer making any money from your contributions so you are not exactly top of the priority list! Hope you don't have to wait too long
Payplan now claims that its account department is "awaiting a creditor refund", whatever that means ?.
Also got a 6 month statement from one of my creditors last week which showed that my IP hadn't paid a penny to that creditor from October 2013 to April 2014.
Which begs the question "where has the £10k I paid for my F&F offer in December been for the last four/five months ?".
It sounds to me as though a dividend overpayment was made to the creditor in question at some point earlier in the IVA, so Payplan have suspended payments until the overpaid amount has been refunded to them and funds can be distributed accordingly. Doesn't help with the completion of the case, of course, but if this is what has happened at least you will know.
Ralph Paxton
Insolvency Specialist
Rooney Associates
