www.iva.co.uk

Dear All,

It is with regret that I must inform you all that the assignment process pioneered by ClearDebt Limited over the past 12 months is now being withdrawn with immediate effect.

Unfortunately, legal advice can and does change and I have now been given a conclusive argument by Senior Counsel as to why this course of action cannot continue.

One of the most common questions on the forum in recent times has been related to the argument of set-off within IVAs and the legalities of certain creditors’ stances in relation to compensation for mis-sold Payment Protection Insurance (PPI) claims. The new advice received categorically prevents a Supervisor from issuing a Certificate of Completion where there is any possibility that a bank creditor will apply set-off which in effect means that all claims must be settled or closed in order for the IVA to be deemed complete.

It goes without saying that I am very disappointed with this outcome and will ensure that all clients affected are contacted as soon as possible and our website updated. Everyone in this situation has my full sympathy and I will continue to work to find a resolution.

I also will contact those IPs who have used my assignment template to advise them of the new advice received but I would suggest that they stop taking assignments or closing arrangements where potential claims remain unrealised.

Finally, I will be taking this matter further both as the Supervisor of many, many clients and as the Chairman of The Debt Resolution Forum to ensure that this clear issue of consumer detriment caused by a number of creditors is dealt with.

Sincerely,

David

Thank you for coming on and making this statement David, at least your client are aware of what is happening. It is a shame as now IVA closures is going to be held up again, seems to be a never ending saga.

Thank you for posting that David. I am with Paul French in consultation all day tomorrow so will also discuss this issue with him.

Thank you Melanie, if you or Paul wants to chat it through with me feel free to ring.

That is kind thank you David. Am sure we will.

So does this mean that even though I know 100% that I have never taken out PPI on any credit cards or loans I should consider submitting PPI claims - just in case - or should I say to prove it.

Such bad news for those in the process of this happening ... Hopefully a way forward can be found that will allow a speedy closure process for customers.

MikeyM .. I was convinced I had no PPI but thought, "If they want to waste their time, let them".

They found over £8000 that had been rolled into a current loan many, many years ago when it was replaced during it's term with a larger loan.

What a shame all the work David did to make a working solution and a route to close IVA's even though PPI is being pursued has been wiped out with a single statement. Thank you for posting an update and the reason why David.

Bit of a backwards step. Oh well. Sympathies to anyone who's life will be put in suspended animation for an indefinite length of time.

Paul

At the very least the IP still could allow you to carry on free from windfall clause responsibilities and the like.

Don't listen to anyone who would ever have you believe that the entire world is run by anyone other than bankers and lawyers.

Interesting point Foggy as to whether one could consider that whilst the IVA has been completed as far as the debtor is concerned but because of the bank creditors (or other creditors) actions in asserting set-off where there is no set-off and the IP cannot complete the case whether any windfalls from that time on could be ignored or whether the IP could grant an exemption.

Let me put my thinking cap on.

I hope you can come up with something David. As we all know some companies are taking years to close IVAs and I feel it's very unfair that someone in an IVA could make their payments for 5 or 6 years and then, through no fault of their own, be subject to the terms for another couple of years.

Had my IVA been successful this would have happened to me so it's something I feel quite strongly about and I hope a solution can be found.

Hi everyone,

Just completed an early morning meeting with my team here in Timperley.

I am glad to report that we are currently taking this action upon receipt of the debtor’s final contribution and advising them within the report that the only purpose for keeping the case open is for PPI mis-selling recoveries.

So where a client (debtor) in his/her IVA has completed all that was required and because of not being able to issue a certificate of completion for the reasons stated in my statement yesterday (see start of post), I as Supervisor will not take any subsequent windfalls that a client receives.

I hope that this will in some way help those who are just caught within this limbo period.

Regards

David