Does anyone out there know where the legal statement is allowing an IP to take ownership of PPI's claim payments comes from. I've asked my IP but was just directed to a BBC news page about the court ruling that people with PPI could make a claim? I'm sure it can't be classified as a 'windfull' more of repayment for a 'rip off'
It isn't a windfall, it is classed as an asset as it was there before the IVA started.
The IP is quite legally able to ask for the claim to be made so that the creditors can get the maximum dividend they can. Even if you do the claim yourself then it has to be paid into the IVA.
When an IP that takes 33% (own PPI claims agent) and 15% (windfall), then I guess the creditor is only entitled to 52% and the IP 48%. But if its an asset then the creditor would get 67% and the IP 33%?
Either way when this amounts to £20,000 in total then both parties do rather well. I would much prefer it all went to the creditor.
Cairo -- we would all much rather it went to the creditor. However, the IP is only getting the 15% the creditors agreed up front to pay, and this is 15% of the remaining 60%, not the lot. The claims company, which is appointed by the IP in many cases, is a seperate entity and gets their cut for what is often very little work as first bite of the cherry, but 30% seems to be the norm.
Some IP's will allow you to carry out your own claims, in which case they will get 15% of a higher proportion, so IP and creditor would be better off.
I am surprised that creditors haven't cottoned on to the amount being flush down the pan the way these things are currently being handled !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Cairo, your IP "should" be able to disclose the part in your paperwork that states that Any PPI is classed as an asset, or at least the wording should show that it could be even if the letters PPI are not listed, not all IVA's can capture the PPI as and asset. Being directed to a BBC website is not a real answer from your IP sorry to say. They should clarify it for you.
Took The plunge and made the call, changed our family life and we have never been happier. Debt free and wont go back..... IVA was by far the best thing we ever did to teach us the real value of Family and money
Bear in mind that most older IVAs do not mention PPI (mine doesn't)but it is classed as an asset as far as I am aware and as some IPs on here have stated.
Hi Niobe mine is just over is two years old, no PPI is mentioned but I can also confirm that any PPI on our joint IVA is not captured, and I have this confirmed, of course each IVA is different but that is why most IP's state it is better to clarify with your own IP. We seem to be in a minority with the wording on our IVA.
Took The plunge and made the call, changed our family life and we have never been happier. Debt free and wont go back..... IVA was by far the best thing we ever did to teach us the real value of Family and money
Thankfully we have no PPI - never needed it or wanted it. I'm public sector so get paid in full whilst off sick and husband has been on a medical pension since 1994 so never relevant for us.
In-a-mess ... I would be interested to know what wording you have in your proposal which your IP deemed not to capture PPI. Would you be so kind as to post it up?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If your IP has confirmed to you that the PPI reclaim is not an asset, then surely the money is yours to keep and the IP has no interest in it - so why are they directing how the claim be made? I think you need to check this out again, as IPs cannot pursue something they have no entitlement to.
Thanks everyone for your inputs on this and other related topics. It is very clear that there is no hard and fast regulation on the matter. The phrase 'IP's discretion' seems to crop up an awful number of times. Whats needed is a test case, but as someone commented on another post, who in an IVA can afford to do this. The alternative is some hard regulation being put in place, but as the PPI issue is only a temporary activity its unlikely that it will ever happen.
as you said at first it's a repayment for a rip off , and a lot on here will say it should go towards the iva as we must try to pay back as much as possible , ? payback money that wasn't supposed to be there , I wonder if in future it will come out that it is wrong to do it and it ends up blighting ips on the bum just like it did with the banks
However, on a personal note, if my creditors are willing to write off some £30,000 in debt plus, by my calculations in my case, miss out on the same again in frozen interest, they are more than welcome to "my" £7,000 PPI.
I would add ... only if they are entitled to it under the terms of my proposal. Nowt to do with the money here, but as I have to stick to the terms then so should they!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I don't see how proper investigation leading to asset recovery is going to "bit IPs on the bum". We are more likely to get bitten if we ignore this, than do something about it.
I am glad to see that Foggy understands the position. Surely when you took these debts out you did so with the sole intent of repaying them. If the PPI money helps to see a little bit more repaid - is there really anything terribly wrong in what the IP is doing for your creditors?
