Letter of Authority

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clover
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by clover » Sat Sep 08, 2018 10:50 am
Good morning everyone,

I'm on a IVA since March this year and recently I've been contacted by a solicitors company and also being sent some papers to sign in. They said they are contacting me on behalf of my IP. When contacting my IP, I was told it is a requirement of my IVA to sign that authority so they can have the power to chase and miss-sold PPI. I don't know exactly what a PPI is and I never locked into it because it always looked like a scam to me.

Is it legal such requirement? They said it is part of my IVA but why they didn't mention anything about this when I signed in into the IVA? Why a few months later? The proposal did say to fully cooperate and I am happy to do it, but why do they need a signature from me to do things?

I am just worried I will be signing something that will give them power to do whatever they want with me.

The letter says: This letter gives Slater Hayward Law full authority to act on behalf of the IP and client(s) in launching claims, accepting or rejecting any refund payments offered, to refer this matter to Ombudsman and to issue proceedings at the county court.

My IP assured me nobody will every be able to take or move any money from my accounts. While I am happy to show and give any information to my IP, it really makes me skeptical about this authority. Why now?

Any help will be much appreciated. I assume my IP will also read this topic so for this reason I choose not to disclose who they are.

Thank you
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kallis3
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by kallis3 » Sat Sep 08, 2018 11:27 am
Yes it is a requirement. A lot of us didn't realise we had PPI and your IVA won't be completed until it is investigated.
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Foggy
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by Foggy » Sat Sep 08, 2018 11:33 am
Hello Clover, and welcome. Your IP might well have a look at this forum, but I doubt they know you as "Clover" and you will be one of many sent these letters.

Anyway ... it is standard practice for the IP to arrange PPI claims and pay the refunds into your IVA .. indeed, it is his or her duty to do so. They need your authority to act on your behalf in making these claims and you cannot withhold it if you want your IVA to continue. The authority only gives Slater Hayward the ability to deal with PPI refunds and similar. It gives them no access to your accounts.

PPI is an insirance premium which was often added to loans in the past ( sometimes without us knowing) and the courts and Ombudsman declared that these premiums were unjustly charged and had to be refunded to the borrowers. These refunds are treated as "after acquired assets" by the IP's and are payable to creditors. Normally an IP would look at this sometime during the IVA, often quite late, but there has now been placed a deadline on making claims, so they are all rushing to get claims started before the deadline (next autumn).

I was convinced I had no PPI and they found over £8000 ! That was Slater Hayward too.
clover
Posts: 2
by clover » Sat Sep 08, 2018 1:00 pm
Thank you everyone for your help. Very professional :) I can't thank you enough!

The post can be closed now, unless someone else is interested in it.
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Foggy
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by Foggy » Sat Sep 08, 2018 1:50 pm
No problem, Clover.

We will leave the post visible as there are always people with the same worries, but prefer not to ask the question themselves, who can be helped.
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