www.iva.co.uk

Good morning,
I am at the end of my tether!
I completed my IVA in Nov 2011 and received a letter of discharge from Money, debt and credit (who were great by the way). In the contract, it clearly states my IVA will be open for 64 months after the creditors meeting, which would have been March 2012, well over a year ago. Anyway, around June of 2013, I was told that I had a PPI compensation claim by Lloyds and won an amount of money. I waited for the cheque to come but nothing did so I contacted them and they told me my IVA was still open and they had sent it to the company that deals with it, and the cheque had been cashed. So after a few calls etc to Money, Debt and Credit, I find out that my IVA WAS STILL OPEN!! Apparently there is some sort of case with VAT ongoing and they will not close my case until that is resolved, so even though I have completely fulfilled my responsibilities, and it is well over a year since I have had my discharge letter, Grant Thornton have claimed the entire amount of my PPI compensation, saying it was a future asset! 1) I had no idea at the time of signing the IVA (or even at the end of it) that I was entitled so how on earth was I supposed to include this and make it susceptible to being distributed to creditors? 2) How long can GT continue to make claims on assets, even though I am officially discharged, although my case remains open through no fault of my own?? I paid every single payment off, on time and in full. I am in communication with GT but all I got was a standard letter saying that GT's new IVA rules are more favourable. I SHOULD NOT EVEN STILL BE IN IT! Could anyone please advise me on what to do next?
Thank you for any help in advance!
Paul

Welcome to GT Hell the VAT issue was paymex but if Grant Thornton Bought your IVA taxman has told them all bought IVA's are subject to VAT which of course GT is challenging because it destroys thier business model on IVA's.
You need to check your IVA see if it was a defined assets IVA if so i would challenge GT's legal assumption that they can claim it (they assume it but its not legally proven yet).
If your discharge letter is a Completion certificate you should owe nothing from that PPI and Grant Thornton are on thin ice if it just says you,ve finished your IVA but waiting for your competition certificate then they probably entitled to it but i would contact them about keeping the statutory intrest which they offer to a lot of thier customers.
But i would wait for our professionals on here to help but can you give them more detials.
What your discharge letter says would help a lot,

PS tell them to go take a long walk on a short pier over "new favourable terms" they only favourable to them.

viperboyz - it is not that all bought IVA's are subject to tax but that any future supervisory fees are potentially subject to VAT. This is hotly disputed by practitioners and no definitive ruling has been given.

grifta - If you have a formal letter of discharge from Money Debt & Credit and this is deemed your completion document why don't you write to the Insolvency Service and ask to be removed from the Insolvency Register.

Any further proceeds coming into your IVA estate (current/closed) will still belong to your IVA creditors and Grant Thornton would have to remit such proceeds to your IVA creditors (or if they have received 100p in the £ plus statutory interest - then the balance to you).
Contact Grant Thornton and if you do not get a satisfactory reply inform them that you will report them to their regulatory body.

Good luck.

Regards

David

Thank you :)Honestly, I have no qualm with money, debt and credit, they were very good to me, and helped me loads. I just took it as I was desperate and advised by a Lloyds bank manager (Gee thanks!). I really wanted to honour as much of my debts as possible but the interest was killing me and ended up paying 42p in every pound owed. Everyone was happy, and I looked forward to the end of the 60 months were the weight of having one would be removed, yet here I am over a year later, and it is still stressing me out. Like I said, I never tried to hide anything, I thought as soon as my C of C was received I was out of it. I didn't then jump and apply for PPI just because I thought I wouldnt have to give it to the IVA firm, it just was noted that I was owed it, so I applied. On top of all this, I have had broken promises of phone calls from GT, and emails ignored for weeks. I will give them one more chance to remedy this to everyone's satisfaction and then I will go through this new complaint gateway, but I will not give up. Thank you again.

David you are correct its the supervisor fee's that are the problem and mix it in with Grant Thorntons business plan to buy up as many IVA's as possible its going to be a mess.
But most of the Problems are GT's creation and instead of dealing with them properly they busy messing thier customers around and looking for further avenues of revenue via ppi using unfair pressure tactics with constant threats of Breaches over a subject they knew nothing about but expected thier unqualified IVA clients to know everything about.