Creditfix and PPI

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allaboutme77
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by allaboutme77 » Tue May 02, 2017 1:57 pm
Hi all,
Opinions please.

As of last month we have completed our IVA through Creditfix. All in all an interesting experience with the change over from PJG.
Now as most may be aware Creditfix are well lets say they are quite lazy especially with communication with have had to do all the work ourselves from chasing reviews to chasing completion. No surprise there.

We have our Competion Certicate in hand.

Now why I have done this I do not know but hey ho it's done now, we started PPI investigations through our old accounts some included and some not included in the IVA. Now I think it was curiosity more than anything and we were pretty sure nothing was owed to us. But quite unexpectedly we have received our first 2 responses from the investigations. Both have rewarded us refunds of £1500 and £1100. Both will be sent to Creditfix. Annoyingly, but I suppose as was expected in any circumstance.


Now it got me to thinking of the closure letter I received from Creditfix, I do not know how to attach an image so I will quote point 1 - 3 on the closure letter:

-The Supervisor is authorised to investigate any PPI claims and to realise the same for the benefit of the arrangement.

-It will be a matter for the sole discretion of the supervisor whether or not the claim or claims should be pursed. It will not be a breach of the IVA if any claim is unrecoverable or is impractical to pursue.

-The debtor be authorised to claim 50% of the net realisations after costs from mis-sold PPI realised during the course of the IVA.

Now underneath the 8 points is a statement as follows:
'The terms of the agreement were varied at a general meeting of creditors held on 27 March 2015 to accept the funds received in satisfaction of the debts, costs and expenses of the IVA'.

If I were to take point 3 literally should I be entitled to anything? And as I am officially outside 'the course of the IVA' are they entitled to anything.

An important point is that we were never chased to sign up to there own PPI investigation and we were never asked to sign any of their paperwork, we started our own investigations, so surely they cannot claim costs for that work.
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Foggy
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by Foggy » Tue May 02, 2017 2:25 pm
Reading those statements:

-The Supervisor is authorised to investigate any PPI claims and to realise the same for the benefit of the arrangement.
Standard term

-It will be a matter for the sole discretion of the supervisor whether or not the claim or claims should be pursed. It will not be a breach of the IVA if any claim is unrecoverable or is impractical to pursue.
Again pretty standard.

-The debtor be authorised to claim 50% of the net realisations after costs from mis-sold PPI realised during the course of the IVA.
From this -- taking it as written --- you get 50% of PPI refunds after costs of PPI realised during the term .... however, your own claims are realised AFTER the term, so this clause would not apply. Now ... generally, in the absence of an agreement otherwise, all PPI is due to the IVA --- and it could be argued to be the case here, as refunds outside the term are not covered by the 50% promise.

The fee they refer to are probably the claims company fees had their firm been used -- which it wasn't, so, no they cannot claim that fee. They are, however, entitled to a percentage of any realisation to the IVA, if so agreed in the fee structure.
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allaboutme77
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by allaboutme77 » Tue May 02, 2017 4:56 pm
Ok having spoken to a customer service agent she couldn't explain where the company stood on this issue and to her mind the entire sums would be captured by the IVA. Fair enough I suppose.
She has said she needs to speak to the Closure Dept as shes not sure what the statement regards 50% actually means.

Strange really because I was under the impression Creditfix had done away with transfer variation terms they had tried to impose.
I'll wait to hear how they plan to deal with it.

Main thing is we are done. Fresh start from now :D
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allaboutme77
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by allaboutme77 » Fri May 05, 2017 4:53 pm
Just an update.
After asking CF for clarification they are claiming that I am not entitled to any part of the PPI, apparantly the clause they brought in means that I would be allowed 50% to put towards the IVA, I asked what happens to the other 50% i was told CF's PPI team get it, i said they never investigated it I did, they said my PPI management company get it, I said I don't have one I investigated myself, they said that I can't have the other 50%. They said a manager would call me back. No phone call as yet!

I have been delving deeper into this whole PPI situation and it appears that my IVA may have been different to that in the Greene v Wright case. Apparantly we was on a non R3 IVA know as the Protocol Compliant IVA 2010 which could mean the terms of our IVA meant that our PPI refunds can't be captured into the IVA.

Im still reading but if anybody knows any better I would like to be educated this is all very interesting.
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Foggy
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by Foggy » Fri May 05, 2017 5:19 pm
Yes the court case revolved around R3 terms ... however, the Protocol cases have always relied upon the PPI refund being an after acquired asset which is captured, as you would imagine, during the life of the IVA --- but that the IVA Trust carries on after the issue of the completion certificate, following the ruling in a bankruptcy case (Gallagher) .... this has never been tested -- but I imagine that the "spirit" of the law as decided in the Greene case, would apply to Protocol cases, rather than the "letter" of the law.

If there were any doubts going forward IP's will simply determine them by getting deeds of assignment completed, giving them definite rights over the refunds in perpetuity. Or, will simply delay completion until such time as they are happy that all assets have been captured.
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allaboutme77
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by allaboutme77 » Fri May 05, 2017 6:18 pm
So in your experienced opinion is there any point in pursuing this any further?
And what would have happened if I had waited until the IVA register was clear. Do they still direct funds to the IVA?
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Foggy
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by Foggy » Fri May 05, 2017 6:34 pm
allaboutme77 wrote:
So in your experienced opinion is there any point in pursuing this any further?
And what would have happened if I had waited until the IVA register was clear. Do they still direct funds to the IVA?


Not sure about "experienced opinion" ... but my thoughts are that the PPI would be due to the IVA and, if pursued after the IVA was done and dusted would be captured by the trust, That said -- many IP's would consider it unecomical to unearth old cases to distribute smaller awards and would let you have the money back.

To be fair, from what I have seen since Creditfix bowled into the market, they do tend to operate IVA's in a fair manner and often take the route of least resistance, in our favour, where there is any reasonable doubt. They certainly demonstrate the wisdom of not spending £10 to collect and distribute £5.
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