IVA insurance wont payout.

Jam_Buttie

In March 2007 I entered into an IVA with Freeman Jones where I was paying £325pm. 12 months ago our situation changed and we could only afford £200 a month. Then 6 months ago I had to give up my full time job of 15 years due to my partners mental health issues. It wasnt an easy decision and we'd been trying to cope, but I was always havin mornings/afternoons off/finishing early etc. In the end, enouh was enough and I gave my notice in.

As I had been paying PPi my IP told me to claim. So this was all done in May 2010.

They have decided that they are going to decline my claim as they feel that we dont meet enough criteria.

MY Oh gets DLA: Lower rate mobility, middle rate care, incapacity benefit, Social Services, various adaptions about the house and a Psychiatrist.

I also claim Carers Allowance.

It just seems a shame to bin the IVA off and go down the BR route as there are only 14 months left of it to run.

Plus they sayd that to go BR will cost 900 quid as there is a release fee of £450 to pay to the IVA ppl. I dont have 900pence, let alone £900! So not sure how ID go BR if I dont have the money to do it lol.

Wonder if I could claim back the PPi of £30 p/m I have been paying since March 2007?

Ivorydawn

I would suggest you take independant advice, CAB or someone who does not charge, there are a few organisations that can advise you for free. Whatever you decide Do Not Pay the £450 Release Fee!!! That is just out and out robbery.

Best wishes with whatever route you take

Charco_2

Release fee? ha ha ha ha

- Who was the independent insurance provider?
- What is their relationship to Freeman Jones?
- Did Freeman Jones advise you to take out PPI?
- Did Freeman Jones benefit in any way from this insurance? (ie do freeman jones get a referral fee for advising you to take out insurance?
- Did they calculate the PPI payments before calculating what your monthly disposable income was? Or did they calculate it afterwards?
Seems strange to calculate your DI and sign LEGAL paperwork saying you can afford £XX per month only to then say "...but you can also afford £30 more for PPI"

-What criteria was it exactly that you dont fit for your Insurance claim?
- What does your partner's income have to do with this?
YOUR Debts, YOUR IVA, YOUR Insurance!!!


I know there are a lot of questions there but I dont intend for you to answer them, i mean for you to ask most of them to Freeman Jones and become REALLY Awkward for them!

You've paid £1110 you could ill afford for worthless insurance and they're laughing all the way to the bank!

Could you also ask them for the contact details of their regulators as you would like to ask them a number of questions about the service you have been provided.

On a final note, could you ask them to explain what this release clause is?

I'm confused!

See, if you don't pay your IVA your IP has a duty to act to make you accountable... ie fail your IVA and remove any protection it offers you from your creditors! What are they going to do... leave you in limbo forever??? ha ha ha ha ha

It's black and white! It's binary! It's on or it's off! It's one or tother!

You're either in an IVA in which case you're protected from your creditors so you're laughing - even if you're paying nothing!
OR
You're no-longer in an IVA and your creditors can pursue you - in which case FJ have already released you (failed you) so what would you need to pay them for?

Don't let them bluff and bully you...
Ask them questions I've outlined above...
Ask them for details of their regulators coz you'd like to ask them the questions also...

Suggest that they think about rebating you the money you've wasted on PPI (reclaim the PPI) and use it to put forward a Full and Final settlement of your IVA!

Jam_Buttie

The insurance is with Direct House.
FJ asked in March 2007 about PPi and I agreed to it. This £30 was factored in.
My Oh's income has nothing to do with it - I was just pointing out on here to people they they are on these benefits for a reason etc.

What do you mean by:

You're either in an IVA in which case you're protected from your creditors so you're laughing - even if you're paying nothing!

I'm still in the IVA. Obvisouly I havent been paying anything since giving up work in May 2010 as we were all hoping the Insurance would take over.

PS I went to the CAB who refused to get involved as a 3rd party. If it was just plain debts I was struggling with then they would. But not when an IVA is involved.

Charco_2

I mean their "release fee" is a joke.

I'm on your side... Youre being mistreated by FJ and you should be able to find an amicable end to this - but FJ don't seem interested in helping you.

No time now but I'll expand tomorrow.

Do not pay this fee!

Charco_2

Right, what I was saying was, there is no such thing as a release clause/fee!

They're basically trying to charge you for something that they'll legally have to do anyway - and they're relying on your ignorance of Insolvency Laws to do it!

If you fail your IVA - in this instance by being no-longer able to afford it due to changes in your circumstances - your IP has a duty to take action to end the arrangement. To tell you that you have to pay a fee for this is tantamount to fraud!

There are two main issues I think in your original post. The first being this "release fee" and the second being the PPI (which I'm not surprised didn't pay out).

1. RELEASE FEE
If you miss three payments towards your IVA (or fall three payments behind) then your IP must show that he is actually doing his job of supervising your case and at least discuss the matter with you - he doesn't have to fail the case immediately, but he can't just sit back and watch the money roll in either, he has to be proactive!
If the debtor can show that he is still actively trying to deal with his IVA then it is enough for the IP to show that he is aware of the problem but that he has reason to believe that the arrangement is still viable. However once it is clear that the arrangement will not, or cannot, move forward, then the IP must fail (or otherwise end) the arrangement.

To pretend to you that you would linger in some type of limbo unless you buy your freedom, is simply wrong and misleading.

Sooner or later your IP is simply going to have to end the IVA whether you pay or not. Personally I think your IP should make an effort to end the IVA successfully but there ye go!

(wouldn't it be great if you could enter a debt solution, make no payments but still be protected from your creditors indefinitely until the debts became statute limited!?)

2. PPI
I would go down the road that this was mis-sold to you. You want all that money paid back! Not just the £1110 but the interest too.

Did FJ explain what benefit they would gain by diverting £30 from your arrangement into this questionable insurance arrangement?

Your IP has the power to reduce your monthly contributions by up to 15% without calling a new creditors meeting - no questions asked. It's a power reserved for the smooth running of the arrangement and to prevent the system getting bogged down in trivial incidents. From what you say, it appears that they've used (sorry, abused!) this power to divert money from your arrangement into their own pockets.

I guarantee you that someone gets a commission from Direct House for the "work" they put their way!


You should contact FJ and discuss your dis-satisfaction at the way things have turned out.
You should also contact their regulators to discuss your dissatisfaction and your PPI concerns.
FJ will likely bend over backwards to help you out just to prevent you raising these issues with their regulators (I think you still should but maybe you’d prefer to let sleeping dogs lie if you can end this amicably).

However when you've got FJ's attention I think you should discuss with them the possibility of putting forward a F&F settlement of your IVA using the £1110+ you intend to reclaim from this possibly probably likely mis-sold PPI.

amersall

This is disgusting, someone is on a iva and the people dealing with this "sold ppi" this beggers belief. Go for mis sell with this, you have very good reasons. Charco knows what is what, take the good advice.
If you put a claim in for mis sell take a look here
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#checklist
You will get all the help you need here. Good luck x.