Is that right Gareth? IP regulations state that funds need to be held in interest bearing accounts, and that the interest earned belongs to the IVA creditors. Perhaps you have worded your response incorrectly?
I thought that only referred to client money and not estate money?
The reason no interest is applied is due to the current low interest rates. Historically we did receive quarterly interest on estate accounts. More recently our bank have applied a zero interest rate on the account. I suppose you could say it is an interest bearing account with a zero rate of interest as it is not specifically a non interest bearing account. Our bank do not however apply any charges for the facility so the estates (and therefore the creditors) do benefit from free banking.
Regarding the deed of assignment it is currently being drafted by a solicitor and following this it will need reviewing by a barrister. I haven't been given a definitive timescale although the indication I have received is that it should take approximately one month (***this is just an estimate***). Once the deed of assignment is approved we can then start to role this out to our clients.
Funds are required to be held on interest bearing accounts, but I agree with you that the paltry amount that we receive almosts makes it not worthwhile - and my own bank's charges are actually far more than the value of interest we receive. Sounds like you guys are getting a better deal!
We used the ClearDebt deed of assignment, which David Mond very kindly shared with me. It might we both asking for a copy of that to save you some legal fees and to get going quicker. David has generously offered this to any IP who wants a copy.
Thanks for the information gareth,I know you cant put a definitive timescale on these issues but to have some sort of idea what we are looking at is very pleasing.
