The IP would need to know who is providing the money but if it is paid by a cheque or draft there is no need to delve into the third party's finances. However, if the money was being handed over in a binbag there would be money laundering issues....
I have been told by my IP that because it is over £10K they need to check the identity of the person to confirm that the money being given is not the proceeds of crime or is being laundered. Its the law apparently.
The problem I have is that I do not want that person to know I am in an IVA. Is there any way around this or am I protected.
When you make a propoosal of F&F offer are they allowed to contact the thrid party?
You have raised a couple of issues. If the third party is giving you the money it would be deemed a windfall but if they are lending you the money why do they think you need it?
If the third party provides a letter stating that the money is only available for a full and final settlement and has their name and address that should suffice but clearly that is not the case here.
I have told the third party I am in an DMP not IVA but I guess if it has to go on a letter then it would have to state as for full and final settlement of an IVA so it is not treated as windfall....right?
Absolutely. Let the third party know about the IVA and then ask your IP what is needed from them. There is no need to check on money being paid from a bank account by cheque, draft or transfer as the fact that the money is already in the bank means it has to be clean.
So there is no legal requirement for them to check however in this case the money is currently in an overseas bank account..
Will this cause a problem?
Rest assured it is a family member and the money is genuine..
It really is none of the IPs business where the third party got the money provided the funds are paid over properly. Once the money is in the bank that means the bank themselves are happy the funds are clean so if they are not, the fault would lie with your relative's bank and not the IP.
If it is to your account then you just transfer the funds across to the IP company.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I would not want to speak for your IP but we would want the money paid directly to us from the third party. Normally the third party would state that the money is in a 30/60 day notice account and will be forwarded once this period was up. Bank transfers are the easiest although a draft or cheque is usually fine.
Sorry Michael, didn't think it would make a difference.
Apologies!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
A problem I could see Jan is a forged letter to the IP from a non existant third party whereas in reality the money was a windfall. I am not saying that this is what Chris is doing but the IP would at least want to cover their proverbial a**.
On this one rare occasion, I am going to disagree with Michael! I believe that IPs should always check the identity of parties providing lump sum monies - there should be little objection to this as the third party is presumably aware of the need for the funding, and the penalties to us of not complying with Money Laundering rulings are very onerous.
