Nearing completion of my IVA under Debt Free Direct. Now being hassled about PPI

[badboy]

Nearing completion of my IVA under Debt Free Direct (4 months left) and they are hassling me to return Equity Finance forms to claim back PPI. Originally the DFD letter said they Recommend me to do this, more recently they wrote asking why i haven't done it and it's their obligation to recover any monies blah blah. I asked them where in the IVA agreement it say's i have to do this and isn't it a bit daft claiming money off for instance HSBC, and if successful, paying it to the IVA to split back to HSBC and their rivals! I got a terse e mail reply telling me i had to do it and strongly suggesting that my closure would be delayed significantly if i didn't.
What is the legal standing on this as under the agreement, come Oct this year that's it, finished , done no more IVA, no more payments. If they refuse to close on it under these grounds isn't that breaking the agreement?

[Random Lady]

We are with DFD and to be quite honest we just did it when the forms arrived. We took the credit in the first place and anything additional we can pay off the debt over and above the IVA we are happy to do. There was nothing in our paperwork to do it, we decided to do it several months ago. We knew a bit had been paid over into the IVA but today I found out it was a lot more than I thought so it will benefit us in the long run. Any PPI is an asset of the IVA so at least signing the forms gets the job done for you rather than having to do it yourself.

[baldy]

Hey badboy, i can understand where your coming from, but the IVA company has you by the short and curlies.

They will probley do as much as they can to delay the completion if you dont claim the PPI while in the IVA.Trouble is nobody saw the PPi situation arising when people entered into their IVA's around the time you did so thats why there is nothing in the proposal to cover it i guess.

Yeah, your right there is nothing to say you have to claim in the paper work during your IVA but im afraid they hold all the cards. It always seems the the banks have everything in their favour?[:D]

Me thinks you might just have to go along with it, get the IVA finnished and then thats the end of it.

Debt free, and owing nothing to any one.

Best of luck

baldy

[orchid5]

I too am with DFD and did as Random Lady did last November, sadly i have had nothing but trouble since and am 2 months away from completing, i received a phone call yesterday from EIF, probably on the back of the intervention by Declan to say that my creditors still haven't come forward despite having been sent 7 day warning letter, which incidently mean nowt as they have had over 3 weeks to reply to these! So, the upshot of the phone call was that this was now being passed back to DFD to see if they will allow EIF to close my case down!!!! Now as we all know it is the intention of anyone in an IVA to pay back as much as possible and for your IVA company to pursue any avenue to do this, so from where i'm standing if there is an outside chance of me having PPI monies to come back then DFD will continue to pursue this, this means it will have to go to financial ombudsmen which according to EIF have a backlog of work going back 18 months, so my completion of my IVA is looking doubtful at the moment and i'm one very unhappy bunny to say the least!!!!!!!!! My advice to you badboy is if you think you don't have any claims then be very firm and tell DFD this. Good luck and best wishes.

[badboy]

Hmmm ,thanks for the replies, thing is under the agreement the IVA finishes in Oct, that's it done. Under the agreement the creditors have to complete closure. The ppi has been added in after the event and for DFD to hold me to ransom is wrong. My payments finish in Oct, whether they ike it or not. If i do this and it takes say 6 months to get anything out of the banks then as i'm out of the IVA, technically that money is due to ME surely.

It's not so much the PPI business, it's the faint threat to hold it all up.

In the first DFD letter they said they Recommend i do this, not that i have to

[kravarran]

I've never taken out PPI so this shouldn't be an issue for me ..... best just to comply though and hopefully get the completion on time

[plasticdaft]

Badboy what your IP is attempting to do is ensure that 3 weeks after your discharge you dont go trying to reclaim ppi by ensuring any claims are pursued prior to discharge. Whether or not you can challenge this legally would be interesting,and costly,and take a long time to do therefore most people will fill in the forms grudgingly and allow EiF to carry out the investigations into whether or not a claim may exist.

The way which insolvency firms are dealing with this is particularly poor from a customer relations point of view,and we continually read of people in IVA's feeling threatened into signing the forms,now this itself worries me most.

Your IP has a right to chase assets which exist for the benefit of creditors,but what I would be tempted to do is chase the PPI yourself,its easily done,and at that point EiF do not gain financially as all the ppi reclaim firms are ambulance chasers and should not be encouraged. IP's in fact could do more to promote those in IVA's to chase up PPI themselves earlier in their IVA rather than as a last minute thing. The result would be a greater return for creditors,possibly even some IVA's concluding early(if the reclaim amount and payments made to the IVA catch up with the total debt plus fees and statutory interest,if applicable).

get in there early and make the claims if you can be bothered,if not then you really are over a barrel,but the attitude of several IVA firms stinks.

Paul

[badboy]

It's laughable.....they apply to the Banks to refund money to the iva, to be split up and given to their rivals..........of course this will hold it all up! Just as DFD will if i don't return the forms

[KM1512]

I would love to start reclaiming them myself and repay them to my IVA but I don't know all the creditors I may have had PPI's with because the loans were paid off and settled before my IVA and alot of them were joint loans with my EX husband who wouldn't sign any consent for me as we aren't on good terms our split was the reason I had to go into a IVA because of the loss in income if they are going to go back 10 years or more it will hold up IVA completions I had one ppi which I claimed back and paid the £800 back to my IVA[:(]

[angelrainbow]

I also wonder what the legal stand point is on this. It seems morally wrong to effectively blackmail people (which is how it appears to me) about not getting the completion certificate unless the PPI route is taken.

[relieved33]

I am sure that IPs are not "blackmailing" clients into claiming PPI but simply carrying out what they perceive their role to be the most diligently they can.

To use the blackmailing logic then I effectively blackmailed my creditors as I said that I'd go bankrupt leaving them with nothing unless they accepted my IVA proposal. I am sure that they would rather I repaid all I owed but that was the situation.

As I have said on a previous post, all perception is reality and it is how you interpret a situation that dictates your belief of it.

[Niobe]

The IP has a duty to maximise payments to the creditors and if this means getting clients to claim PPI then that's what they have to do.

[Heretoday]

At Least DFD are doing this a couple of months before your last payment so there is a chance that your completion certificate will follow shortly after that last payment.

Some less reputable companies don’t start the ppi process until months after your final payment so count yourself lucky!

I am with you on the whole being black mailed and bullied into claiming thing though our individual opinions do not seem to count.

[Shining]

I think any claim should only ever be made with the full consent of the client who belileves they were genuinely missold ppi. Any claim should not hold up the IVA being concluded (my opinion).

If no claim is to be made within the IVA then no claim after the IVA has concluded shoudld be allowed either again all my own opinions!

[Niobe]

My own company are very good - we just send the paperwork back marked 'No PPI' and that's it. We're not being bullied into doing anything.