www.iva.co.uk

im in an iva which runs out in october,last year i was told by a claims group i could get my ppi back.at the time i agreed and got a letter from the bank with a offer for nearly 7000.the claims company invoiced me for nearly 3000 but i was unaware till recently i wouldnt get a penny.upto now i still havent signed agreement accepting the banks offer but still get threatening letters from the claims company for payment of the invoice. dont know what to do im scared the bailiffs are next.

Has the claim actually been paid out to you Carl? If not, and assuming that the monies are actually due which has led to the bill from the claims company, I suggest that you tell them to seek payment of the claim, deduct their costs and send the balance to your IVA Supervisor. The money is rightly payable to the IVA as an asset, but the claims company charging 42% for dealing with this matter does seem excessive. Is this covered by the contract you actually entered into with this company?

I agree, Melanie, that 42% is excessive -- but this compoany is not alone in charging fees of this order!

payplan use a company that charges 40%.surley payplan are not getting the best deal for the creditors there.nearly half going in charges is by my maths a very poor return.

After 42% to the claims company and then the IP takes a cut, roughly what percentage will actually go to the creditors?

"the claims company invoiced me for nearly 3000 but i was unaware till recently i wouldnt get a penny" im assuming from this the bank has off-set the PPI payment against the original debt and not sent the money on to you?

The above seems to be happening more and more with the PPI companies then demanding payment for their services!

Carl....did the settlement go to your IP, you or the the bank?

I believe you are under obligation to accept the claim or pay the fee even if you refuse the claim which is why the claims company are putting pressure on. You can see their point, they've done the work and now want to be paid for it! The money does go to you...it goes toawards repaying your debts!!

The legality of banks setting off the monies against their debts is questionable to say the least and should be resisted by IPs supervising IVA cases where this has occured. Legal advice would indicate that this is not correct - but I guess until someone brings a challenge to Court we will have to deal with things on a case by case basis.

It seems the PPI Claims companies can charge whatever they like and are charging extortionate % - it will be a very profitable business for them. Yes, creditors will get far less but as far as Payplan etc are concerned at least there will be something extra going into the IVA and therefore improving the dividend. For people in an IVA it makes no odds (apart from the delays it causes) as they are monies due to the IVA to help repay debts but I do feel sorry for people who were genuinely misold PPI who are due that money to themselves and nearly half of it is getting eaten up by these high claim fees.