Keeping some of a PPI Claim

RuthnJasper

FiatFan wrote: »

yeah in the latest email the IP quoted this from my agreement,

"Refund of mis-sold Payment Protection Insurance (PPI) - Section 17(6) of the standard conditions will not apply in relation to monies due to me from refunds of mis-sold payment protection insurance policies. Creditors are not to apply set off against debts bound by the terms of the arrangement. Any such refunds will be classed as an after acquired asset in accordance with Section 14 (1) and fall due to the arrangement for the benefit of all creditors."

From what I understand now, to be able to claim from any PPI/inheritance etc you have to exclude it from the arrangement at the outset otherwise the IP will claim it regardless of your circumstances. I expect trying to exclude a payment will cause all sorts of problems at the outset.

It doesn't cost anything to ask. Try, and see how you get on.

Keep smiling - regardless of this, you're on the road to recovery with an IVA. And that is not an easy road to take, as I know only too well. I sincerely wish you all the best for the future.

KEEP GOING - it's worth it, even if it doesn't always seem like it.

Depth_Charge

Hi

The whole PPI issue concerning IVAs has certainly caused debate.

How taking such huge amounts out of the IVA via claims company commission, fees or whatever can be seriously and professionally deemed as being in the best interest of the creditors or the person subject to the IVA (hey, lets not forget them) would frankly be laughable in my opinion.

Some of these are the same people who use the arguement that they have to do this as they are duty bound by the rules to raise the maximum return for the creditors as per the IVA terms.

From what I have read, heard & seen the PPI area in IVAs can be inconsistent to say the least.

Reading some of the posts on here and other forums and through experience PPI & IVAs certainly look to be causing some huge delays not to mention the worry and uncertainty.

To mitigate the above slightly and to add balance I have seen a couple of cases where the IVAs were as good as failed only then to be rescued and concluded via a Full & Final Settlement by using PPI monies (big percentages were still taken in claims companies fees however but this did not make any difference or cause any loss to the clients on these occasions)

The terms of the IVA will almost certainly have clauses for assets and windfalls etc (which PPI would likely be included) and need checking

Any monies put into the IVA from successful PPI claims obviously can have positive advantages but surely this has to absolutely reinforce the point about the huge percentages going out of the arrangement via 'claims companies' fees etc not being in the best interests of the creditors and the IVAer.

If anybody can make a case against the above I would be all ears - so would one or to IVAers caught up in all this I would imagine.

Maybe somewhere down the line the PPI issue will come back to haunt the IVA industry, some are saying its a certainty.

Then there is the too date little debated subject of Secured Loans & IVAs? nah, we will talk about them later

Just a thought given the current funding crisis - I wonder if the CAB can get in on the PPI angle somewhere - perhaps they could have a claims company rent a spare room in the same building (nothing at all to do with them though just convenience and bit of rent money)

Just my opinions, take and a bit of harmless humour as always:)

FiatFan_2

Thanks RuthnJasper, that is an excellent angle to enquire about, certainly worth a shot. I have read on another forum that one SC client has in writing that the client will receive the first £500 of a PPI claim, sounds a bit dubious but even that would be something to consider for the time taken to claim the money.

IIRC that 12k is about 1/3rd of our reduced debt, although this money will be paid toward our original debt, not sure what our final original debt was after the sale of the old house, that's another question to ask when I ring :rotfl:

DC, reading some of the more frustrated (can't think of the right word this early) IVA'ers on the other forum hit with PPI issues lasting upto 2yrs from completion of payments, I think the whole IVA/PPI scandal will blow up at some point as many are considering court action over it. I believe there is now government guidance on the issue, but IP's are either slow to react, seeking further legal advice or have such a backlog that it'll take an age to remedy. However I also believe we are under no obligation to peruse PPI for the benefit of our creditors, as much as it increases their return. Again, that's another story

RuthnJasper

Depth_Charge wrote: »

Hi

The whole PPI issue concerning IVAs has certainly caused debate.

How taking such huge amounts out of the IVA via commission, fees or whatever can be seriously and professionally deemed as being in the best interest of the creditors or the person subject to the IVA (hey, lets not forget them) would frankly be laughable in my opinion.

Some of these are the same people who use the arguement that they have to do this as they are duty bound by the rules to raise the maximum return for the creditors as per the IVA terms.

From I have read, heard & seen the PPI area in IVAs can be inconsistent to say the least.

DepthCharge, you are SO right on this. I had nothing but hassle when my IP "recommended/advised" the PPI-claims company; massive pack o' [STRIKE]sh1te[/STRIKE] - sorry - "information and forms" sent to me by Recorded Delivery (for which the cost of postage will, no doubt, be billed to my IVA costs) and almost daily 'phone calls from said company. When they rang, they had the cheek to say that they "were calling from I]Roo's IVA Provider[/I" I could tell from my phone's caller ID that they were certainly NOT calling from I]Roo's IVA Provider[/I and when I put this to them they admitted that they were actually calling from the claims company. So that annoyed me straight away.

I am not an angry or confrontational person, far from it, I almost never get cross - but having already found the PPI 'scandal' distasteful, and having been through two ultimately successful claims involving much hassle all by myself, I find the scabby little parasites who charge a fortune for what can be done for free (all the information I needed is here on MSE) to be seriously revolting.

I was then even more annoyed to see that the "recommended" claims company seemed to charge a higher percentage fee than some of those mentioned by Martin Lewis on one of his R2 Jeremy Vine Show appearances :mad:

Anyway, the claims company called almost daily (always announcing themselves to be "ringing from I]Roo's IVA Provider[/I", but I was wise to this by now), to ask if I had returned the forms in the pack yet; when was I going to do it; I had a "legal obligation" to complete and return the forms; etc... Each and every time I calmly and politely informed them that I was handling the claim(s) by myself - for free - and that any refunds received would be declared in full to my IP, but it made not ONE jot of difference. The calls just continued. :wall:

I rang my IVA provider direct to confirm that I was handling the claims myself, and to ask if they could please stop the claims company from 'phoning me and writing to me. I was questioned as to why I would do such a thing and I just replied that, surely, it was in my creditors' (and therefore my own) best interests to not incur a hefty fee of up to 40% of any refunds and to obtain the maximum amount to go into the IVA and not a claims company's pocket, particularly as I already felt bad enough about having to enter into an IVA in the first place. My IVA provider still claimed that they couldn't understand why I would go through the claims process myself - "the vast majority of our clients can't be bothered and are glad to use the claims company we're working with" were her actual words. I just said that if that was the case then it was a pity, but could they PLEASE stop the claims co. from making constant 'phone calls.

Fair enough, the calls did tail off for a while. But it was when I got another one from the claims company (yes - saying that they were calling from I]Roo's IVA Provider[/I) strongly implying that "they" would fail my IVA if I didn't sign the forms and return them immediately that I temporarily 'misplaced' my rag. I wrote to my IVA provider and laid out in very clear terms that I had already asked them to stop this, that I was continuing to handle the PPI claims myself for free, and I did not appreciate the threatening nature of the latest 'phone call from a claims company acting for (vast) profit who purported to be the IVA provider itself. Oooh... I was VERY cross.

That seemed to do the trick; though even I'm not daft enough to imagine that I've heard the last from them...

Sorry to hijack the thread a bit, FiatFan. Once I got started on my mini-rant it was hard to stop...

FiatFan_2

Not at all RuthnJasper, it's great insight to someone else's experience that will aim me and others that read it.

If it had been a smaller refund or the IP hadn't got my back up I would probably have left it. Similarly it does take a bit to wind me up, which in this case they have. Having just received an interesting phone call I have another good amount of questions for them about an unrelated matter so should make for a cracking phone call.

debtfree2016

I recently had a PPI amount from a Creditor who advised that as I was in an IVA they would be refunding the amount direct to their debt. The company my IP are using are now fighting it to have the refund sent direct to the IP who will divide amoungst all creditors along with the 40%..... Sick when you see the figures but maybe I should have chased this over 2 years ago and then maybe just maybe I would never have had to go down the IVA route... 'You live and learn'

FiatFan_2

Well the final word is the whole amount will be credited to SC for distributing to all the creditors so al leave it at that.

As I mentioned in post #10, I would have had to make arrangements within the iva proposal before it was legalised to have kept any, which apparently can and has been done. They have confirmed that they won't be chasing me for any potential PPI in the future and don't promote any 3rd party thief companies to claim for me but IF I chose to then it will be benefit the creditors.

Max_Maxwell

Well done to RuthnJasper, you've so done the right thing with your PPI claim. What a great case you made to your IP to keep a percentage.

Forgive my jumping on your parade, but I said exactly this in my post of July last year:

"IPs and PPI Recovery Agents have seen an opportunity to work collaboratively for mutual gain. It's called commerce.

As the IPs quite rightly say, it is their duty to maximise the recovery of funds into the IVA and there is an eagerness on their part for the debtor to complete the claim form. In the event of a succesful claim for repayment of PPI everybody wins. Except the debtor.

If you think you may be entitled to a PPI refund then make the claim yourself and do a deal with your IP. Tell them you want to keep 20% and they can have the rest. No IP could turn down an offer like that. It's called commerce."

Depth_Charge

Hi

Interesting thread on a genuine open forum

People are being strapped with the increase in the cost of living, pay cuts, freezes and benefit cuts etc (latest news below)

http://www.bbc.co.uk/news/business-22860320

http://www.ifs.org.uk/pr/fs_june2013_launch_pr.pdf

People struggling and doing their best with payments into IVAs and other debt management arrangements.

You keep hearing of people requesting lower IVA payments, freezes and reviews as they struggle to make ends meet, run cars, maintain their property, replace essential household appliances - the basics really.

If they fall behind with payments in an IVA then there is the possibility of a breach and ultimately failure that nobody really wants.

It is going to get worse before it gets better as was predicted months ago.

But on the other hand it seems perfectly acceptable for huge percentage amounts to be allowed to go outside the IVAs and into the pockets of these PPI claims companies without even much of a whisper from ????

Still waiting for someone to make a case:(

No need for me to ask any further questions, they are obvious ?

PS - Ive had a word with a few people in the CAB I know - we are going to see if we can sort something with the rent in the next room or two:)

As always my opinions, take and a touch of humour in the name of genuine independent impartiality

Depth_Charge

Hi

This is from the Stepchange site -

http://moneyaware.co.uk/2012/05/can-i-reclaim-ppi-while-on-an-iva/

DC