Ashb --- the original debt has had interest frozen, due to the IVA, I imagine, whereas the PPI refund is augmented by 8% interest. The PPI also relates to other debt over the years with Barclaycard, which has been paid off prior to the IVA. So, over time, the debt goes down, but the PPI potential refund goes up.
Clear as mud ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The reason the refund was higher than the debt was that they had had their Barclaycard since 1994, so nearly 20 years of paying PPI on their balance........hence the huge refund
If people are considering an IVA and can hold on and juggle money for a few months its worth chasing your own ppi to try and reduce your level of debt,that may be enough to get you out of a formal insolvency and save your credit rating taking a huge hit!!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by plasticdaft
If people are considering an IVA and can hold on and juggle money for a few months its worth chasing your own ppi to try and reduce your level of debt,that may be enough to get you out of a formal insolvency and save your credit rating taking a huge hit!!
Paul
Its this sort of advice that should be given to new cases, however, my scepticism makes me think that some (please note I say some not all before people start shouting at me) IP's would rather chase the fee income than really help people get out of debt..
Personally I feel that the relationship with the IP and the client / creditors is a strange one as it is in the IP's vested interest to ensure the IVA proceeds, as opposed to being resolved before entering into the IVA, as they gain further fee income once its under way..
This, Nick, borders on the issue I have with the modern practise of basing fees on a percentage of realisations (commission, if you will). I feel it puts the IP in between a rock and a hard place when fees have been pared to the bone anyway and is a cruel device purposefully introduced by creditors.
As I have said before, to many IP's ( with the usual noteable exceptions)no longer regard US as the client !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
At the start of the IVA trail we are the client, we enlist the services of the IP in preparing the relevant paperwork so they can put forward an IVA proposal to our creditors and we negotiate a fee which comes out of the IAV pot should the IVA be approved.
Should the proposal be accepted the IP then negotiates a fee with the creditors, which also comes out of the IVA pot, for managing the IVA for its given term, however, should you be fortunate to be in a position to settle your IVA in full you are expected to pay this fee even though you had no input to its approval nor do you have any say in agreeing its value.
People have argued that we are responsible for this second fee as it comes out of the payments we make, but couldn't it be argued that the payments we make are payments to the creditors, so any deductions from this money comes straight off the money the creditor should receive so therefore it is coming out of their pockets not ours. It is the element they are prepared to forego to have the IP manage the account as it is usually cheaper than setting up their own in house collection service.
I suppose, technically, the creditors are paying the fees by deduction from the "pot". I realise that the IP, as Supervisor, is more of a referee between us debtors and our creditors. Ensuring that we, each, carry out our obligations as agreed in the terms of our own IVAs.
I have noticed, and this is purely my impression, that the discretion granted to Supervisors has increasingly hardened in favour of the creditor.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Strangely enough the tabloids papers have run an article which echoes that of Martyn Lewis and his thoughts on fees etc, whilst some IP's definately earn theirs and they know who they are, there are others that certainly do not!
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
Dare i say in the sun newspaper today, whilst i generally take no notice of what the Sun has to say the article titled 'Get debt free without a fee', written by Daniel Jones on his Mr money page is very apt, i have seen my fees rise by over 50% in the last 3 months to over £10800, for what i can't see and whilst i know there is work going on behind the scenes, i've only ever had one reply to an email by my IP in all that time! I'm still awaiting my variation meeting date, still haven't got my CC and nor have i got an answer regarding an off-set other than a rather intimidating reply to a formal complaint that i made, which i'm still contemplating sending a copy of to the regulators and the ombudsman, customer care doesn't come high on my IVA provider's agenda that is for sure!
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
If Mr JOnes believes that the charity/not for profit sector for debt advice could cope with the number of people who need to seek debt advice, then he may well be qualified to write in the terms he did recently. Until this Utopia arrives (which it never will) then I suggest he operates a more balanced form of journalism.
In my firm we are definately looking at PPI right from the time a client engages us to act for them. It may be fair comment to criticise my profession for us taking a little while to grasp the extent of the PPI mis-selling within the banking industry, but I think it is also right to say that most IP firms are actually handling matters very well now and as quickly as we can. Certainly our regulators, trade associations and creditors appear to believe so.
Mel, with regard to your second paragraph: I don't think criticism regarding the time taken to grasp the extent of the situation is properly placed -- after all it took the banks and their regulators years !
I would criticise the lack of communication with debtors over this matter, particularly from the larger companies. Even today people are getting claim forms, out of the blue, from claims companies they have never heard of. It wouldn't surprise me if many of these unexpected letters are being filed along with the ambulance chasers letters !
Last edited by Foggy on Mon Jan 14, 2013 9:49 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
