Hi. Im in an IVA with a company who I maintain have obtained PPI without my consent. Can they do this? I have nothing that says they can and I have not given them consent. I made a complaint to the OFT last week and they have asked for copies of all IVA documentation. I spke with them again today and they said that what the IVA company has done is wrong and they have to legally get my signed consent first and any consent given at the start of the IVA is not valid as consent for ppi claims has to be seperate. Now they are investigating the IVA company and they have told me that its quite abig thing and they have been investigating this right acrosss the board with all IVA companies and they are seeking a legal change to stop this. They also said that because the IVA company did this without my permission I now have the rigth to legally take action and terminate my agreement. Im now going to go bankrupt as I have just also learnt that so far in my arrangement not monies have been paid to any creditor and its all gone in the pockets of the IVA company. Has anyone else had this problem? Why are they doing this, because to me it sounds like they are trying to get away with blue murder!
Advice on this would be great
Exactly. The OFT told me that IVA companies are now going behind customers backs asking their creditors about any ppi. They then obtain it and take huge chucks of it as profit for themselves. They also appoint third party solcitors or claims companies to help them in return for commission, so either way the IVA company is getting more money. This is wrong and it seems its something that when the media get hold of it will cause uproar.
As for bankruptcy I have taken advice from an insolvency solicitor and they have looked at my arrangement proposal and not only after the 5 years would I have paid a huge amount into the IVA but I would have paid back more than my actual debt! Now tell me thats not right...
Somethings up I reckon with these IVAs mine is clearly not right and if they are now getting ppic without peoples consent then there is a serious problem somewhere. But what do you do, they sell it to you and then your hooked in.
Hi Terry. It does happen that, given a high enough disposable income, the debtor will pay back 100% of the debt plus the IP's fees. On the face of it, you are paying ,ore than you owe. However, had you not entered an IVA the creditors would have been adding interest every month.
I worked out, in my case ( and everybody IS different ) had I not entered into the IVA, as I was only paying the interest each month, at the end of the 5 years I would have almost paid the same as my debt in interest ... and still owed every penny of the original debt !!!!!
Now, as for BR ---- you have done 18months of your IVA, and yes, much of your payments have gone to fees --- but now the money will start reaching the creditors. You have just over three years left -- the same time as you will be paying in BR, as you are likely to get a payments order for three years.
So .... you will be no better off ( the OR will go for PPI as well) and your credit record will be shot for an extra couple of years too.
Much to consider.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
While your firm have gone about claiming PPI for creditors entirely the wrong way, realising these assets for your creditors is in itself perfectly legitimate. I'm not sure where taking legal action will get you - other than a lot of expense - so hopefully one of our experts can advise whether there will be any benefit to you.
It is great to be able to repay your debt in full and many of us hope to! This isn't a flaw of the iva process or the proposal which you signed. Unless you have assets to protect, BR will always be the cheaper option.
There are still savings when repaying your debt in full in an iva - in my case my supervisor's fee is about £50pm and just one of my many credit cards was £250pm in interest alone.
Hmm all vey interesting, however I have worked out that I won't lose my home at all due to negative equity, my income in minimal and even though i'm employed I have more going out than in. So really bankruptcy is the better option in this case. I don't see the point in paying all this money every month when I know that by going bankrupt I wont pay hardly any back and my house will be safe because there will be no chance of it going into equity within three years. To be honest the ppi thing I would rather go to the receiver because at least then the no one is making any profit from it like the IVA company would.
I have been on the phone to the OFT since my last post and they have confirmed that they are investigating ths problem regarding ppi. They have also said that if I did go bankrupt the receiver would now be able to claw back any monies relating to ppi from the IVA company that didnt get paid to my creditors. So I guess thats not so bad then.
As I now see this, its either pay another 3 years at over £500 per month and then see it go up after reviews, or go bankrupt for 12 months and if I get a payment arrangement it would be at the most approx £100 for up to 3 years. But that payment is not set in stone because if my bills go up or incoem drops then the payment arrangement would have to change. It's a no brainer, £500 x 36 equals £18,000 or £100 x 36 in bankruptcy equals £3600. When people read these figures I know what most would do!
If the OFT are genuinely making such ridiculous statements then there are grounds here for a very serious complaint against them!
Your IP simply cannot apply for PPI reclaims without your permission, and if this has been done then you have solid grounds for a complaint, but the OFT should not be commenting in the way you have suggested. I'd be keen to know more about this off-line, as TGs scaremongering amongst consumers simply has to be stopped.
And I am just curious in reading your sums. Surely you did the comparative mathematics before you decided t enter into an IVA?
I am slightly worried by your calculations Terry. If you have £500 per month to put into an IVA then I would expect you to have to pay the same for an IPA after Bankruptcy, as the allowances are similar.
As per nepensioner's post, I stand by my earlier post. You will be paying much the same monthly figure under BR as under IVA.
With regard to claiming PPIU without your permission, this is not a breach of any law by the IP -- rather a breach by the creditor in actioning a claim without correct authorisation.
In any event, if there is to be an official investigation of any sort, the specifics of the matter should not be discussed in an open forum, as something might be said which could prejudice any case.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Terry, I don't see how Harrington Brooks could have made 3 PPI claims on your behalf without your consent for surely they would not know which debts you had PPI on if any without asking you first? I know certainly that my IP to date has no knowledge of which debts we had PPI on so they certainly couldn't reclaim it without my involvement.
Also, it's worth knowing that IP's do not reclaim PPI themselves as it's not part of their remit, that is why they are using claims companies to do it, so they would have written to you also to get the information first for them to act upon.
I don't believe for a minute that any creditor would just volunteer this information to an IP or claims company upfront as they are not going to just repay PPI compensation without the debtor actioning the claim, there is nothing in it for them to do so.
Can I ask anyway, why it bothers you so much if PPI is reclaimed anyway? that would increase the dividend to your creditors therefore you would pay more of your debt back, isn't that what you set out to achieve when you took the IVA? granted your IP will also achieve some commission from this but so what? you will have agreed and accepted their fees that will have been clearly detailed within the proposal you would have been sent and asked to sign????
As for what you would pay back over 5 years, well it's not difficult to work out is it? 60 x your monthly payment, you needed to see an insolvency solicitor to work that out? as Foggy has said, you're not even looking at all the interest and charges that you are saving currently that would still be accruing if you weren't protected by your IVA.
Negative equity, hmmm, well that's all very well but in bankruptcy the OR has 2 years and 3 months to look at that, so if you do have any equity further down the line, they can still take your house, and on top of that, even in negative equity, if the OR feels that you could rent somewhere suitable for your family that is cheaper than your mortgage, they can still take your property and force you to rent so it's not as clear cut as you appear to think.
Bankruptcy is a perfectly reasonable option for many people, but to be honest I am incensed that you have come on here with a completely negatively biased view and quite frankly giving incorrect information about IVA's, if you have issues with your company then you should speak to them and sort it out instead of using this forum to basically state that all IVA's are somehow wrong
PPI continues to be a very contentious issue for many. My thought - as previously posted is how many people will be put off IVA's and instead opt for bankruptcy, especially if they have
little or no assets? Sometimes, when I'm reading about problems posters are facing re: case closures, I start to feel the panic rising in me - speculating and ruminating about how long mine will take to close; will I be forced to subnit a base-less claim for PPI; how long will the VAT refund ... I then wonder- with the benefit of hindsight if it would have been easier and less stressful to go for bankruptcy? When I snap out of my maudlings, I reflect on. Why I opted for an IVA. The bottom line for me was no matter what the circumstances were that created my debt problem, I was ultimately responsible, so selected the option that would enable me to repay as much back as possible, whilst giving me protection from rising interest. I'm glad I did, and thankfully, I'm nearing the end of my journey. I do feel it for people new to all this, who are weighing up options, because I think IVA's/IP's are getting a lot of negative attention. If I saw posts on here pre-IVA, there's no way I would have gone for one, which is a shame, ass it's worked out for me, and many others. Sorry for my ramblings...
IVA journey started: 30th March 2009. Settled: 17th July 2012. Completion Certificate received: 13th March 2013. Breathe. x
I agree GillliB as I had no assets to protect but felt morally obliged to deal with my debts and pay back as much as poss. so far no issues with freeman Jones and only 2 payments to go. Hoping the closure is easy tho not holding my breath on that having read about PPI stuff. I cant claim it on grounds of misselling as I asked for it!! what do I do?
Same here 123nearly free. I asked for PPI then phoned to cancel 6 months later. PayPlan have assured me that I don't have to submit a claim and it won't hold up closure. Well done for nearing the end. Great to hear you've had no issues so far - hope ot keeps up!
IVA journey started: 30th March 2009. Settled: 17th July 2012. Completion Certificate received: 13th March 2013. Breathe. x
