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Hi Guys, this is a little bit wooly on full details at the moment but I will give you the info on the basis of what I know at present and will get more "firmed" up info in due course.
A Friend took out an iva in 2007 for total advised debts of £17000 ) I advised him DMP but he went the way of the IVA in the belief it would be completed in 5 years.
Anyway it "completed" and I use that term loosely in 2013 - 6 years in total .........they came to him after 5 years and advised a further 12 months payments would be required to finish his IVA obligations. Now here comes the bits he can't understand. Here are the main points:-
1) He was advised he was paying 72p in the £ so he has repaid basically £12250 of the £17000 debt and this was apparently INCLUSIVE of ALL the IP fees.
2) The company used was called Debt Free finance but they changed mid term to a company called Equity in Finance no advices given as to why by either company or the IP
3) They approached him mid term to offer their services for recovery of any PPI on the premise that any such recoveries would aid the settlement of the IVA and could complete it early
4) They ( Equity in Finance ) had directly recovered ( in addition to the £12250 of IVA payments made by my friend 2013 ) a further £26000 of PPI payments
5) In addition to this my friend had 3 further PPI claims he made directly himself AFTER 2013 when he checked for old paperwork, where a further approx £18000 ( Net of Tax ) was recovered BUT paid directly to Equity in Finance by the companies involved - This is despite noting on their paperwork that the IVA was closed - CLEARLY PRINTED ON THE BANKS COMMUNICATIONS and more so a recorded phone call regarding the acceptance in regards RBS confirmed they were making the payment payable to my friend and to his home address and this was verbally confirmed twice !!
So basically the IVA company ( in whatever guise they are now in ) have had payments totaling £12250 directly from the IVA plus somewhere in the region of £44000 in PPI payments based on an initial debt of £17000 !!
My friend has contacted them and all they say is that they are holding funds for distribution .....this is despite the IVA completing in 2013, that said, they have NEVER, despite requests, forwarded the completion certificate
My reckoning ( and please please correct me ) is that they should with-hold a minimum of £4750 of the ppi money being the shortfall between the £17000 owed and the £12250 paid under the iva but realise that the £12250 ( as noted earlier ) was apparently inclusive of the IP fees, so clarity is needed on exactly what the IP fees ACTUALLY were ??
So lets assume the fees for the IVA were £3000 ?? ( a totally assumed round figure as I have no idea of what standard IVA / IP fees are ) so the revised amount paid back to the creditors would have only been £9250 and means a balance of £7750 of the starting debt of £17000 should have been offset from any PPI recoveries.
As the IVA company handled the PPI recovery of £26000 and assuming a PPI handling fee of 30% was applied ( worst case scenario) then the AVAILABLE funds for distribution should have been circa £18200. If they distributed the outstanding £7750 for the balance of the IVA debt from this, then this should leave approx £10450 payable back to my friend PLUS the claims he made himself totaling £18000 net of tax should now ALSO be paid directly to him from the funds the banks have sent direct to the IVA company.
On those assumptions I believe my friend should be in receipt of £28450 of PPI repayments after the full IVA debt of £17000 plus an assumed £3000 of IVA fees based on the following :-
Initial Debt £17000 + £3000 IVA fees = £20000 due
Total PPI recovery via IVA less 30% recovery fees = £ 36200
Total paid by directly by client during IVA term + 1 year = £12250
Balance remaining and therefore due direct to client = £28450.00
The questions I have no idea about is ......he doesn't think he has all the paperwork from the initial commencement is 2007 so can he apply (and are the IVA bound) for an SAR to supply all paperwork so he can validate the above assumed figures ( these are from his recollections but he thinks they are in the close ballpark )
Are the IVA company entitled to retain any monies over and above the cost of the initial debt on which the IVA was based and the subsequent and clearly outlined fees for handling the IVA.
It initially appears to me that this company are milking my friend dry and if he is entitled to this money I will do my damnedest to ensure he gets it.
Having been a member of this forum for some time ( NRAM mortgage prisoner ) I have read horror stories of unscrupulous IVA companies getting away with murder and facing no issues of recrimination and the claimants losing out on too many occasions.
I hope I have provided as much advice of what I understand the situation to be but if additional info is required please ask and I will endeavor to obtain this from him where possible.
He is not exactly a vulnerable adult but his reasoning and grasp of the situation at hand has, I believe, led him to be taken advantage of by these companies and I want to ensure that this stops now and he is treat in a fair and reasonable manner by all the companies involved.
Thanks in advance
A Friend took out an iva in 2007 for total advised debts of £17000 ) I advised him DMP but he went the way of the IVA in the belief it would be completed in 5 years.
Anyway it "completed" and I use that term loosely in 2013 - 6 years in total .........they came to him after 5 years and advised a further 12 months payments would be required to finish his IVA obligations. Now here comes the bits he can't understand. Here are the main points:-
1) He was advised he was paying 72p in the £ so he has repaid basically £12250 of the £17000 debt and this was apparently INCLUSIVE of ALL the IP fees.
2) The company used was called Debt Free finance but they changed mid term to a company called Equity in Finance no advices given as to why by either company or the IP
3) They approached him mid term to offer their services for recovery of any PPI on the premise that any such recoveries would aid the settlement of the IVA and could complete it early
4) They ( Equity in Finance ) had directly recovered ( in addition to the £12250 of IVA payments made by my friend 2013 ) a further £26000 of PPI payments
5) In addition to this my friend had 3 further PPI claims he made directly himself AFTER 2013 when he checked for old paperwork, where a further approx £18000 ( Net of Tax ) was recovered BUT paid directly to Equity in Finance by the companies involved - This is despite noting on their paperwork that the IVA was closed - CLEARLY PRINTED ON THE BANKS COMMUNICATIONS and more so a recorded phone call regarding the acceptance in regards RBS confirmed they were making the payment payable to my friend and to his home address and this was verbally confirmed twice !!
So basically the IVA company ( in whatever guise they are now in ) have had payments totaling £12250 directly from the IVA plus somewhere in the region of £44000 in PPI payments based on an initial debt of £17000 !!
My friend has contacted them and all they say is that they are holding funds for distribution .....this is despite the IVA completing in 2013, that said, they have NEVER, despite requests, forwarded the completion certificate
My reckoning ( and please please correct me ) is that they should with-hold a minimum of £4750 of the ppi money being the shortfall between the £17000 owed and the £12250 paid under the iva but realise that the £12250 ( as noted earlier ) was apparently inclusive of the IP fees, so clarity is needed on exactly what the IP fees ACTUALLY were ??
So lets assume the fees for the IVA were £3000 ?? ( a totally assumed round figure as I have no idea of what standard IVA / IP fees are ) so the revised amount paid back to the creditors would have only been £9250 and means a balance of £7750 of the starting debt of £17000 should have been offset from any PPI recoveries.
As the IVA company handled the PPI recovery of £26000 and assuming a PPI handling fee of 30% was applied ( worst case scenario) then the AVAILABLE funds for distribution should have been circa £18200. If they distributed the outstanding £7750 for the balance of the IVA debt from this, then this should leave approx £10450 payable back to my friend PLUS the claims he made himself totaling £18000 net of tax should now ALSO be paid directly to him from the funds the banks have sent direct to the IVA company.
On those assumptions I believe my friend should be in receipt of £28450 of PPI repayments after the full IVA debt of £17000 plus an assumed £3000 of IVA fees based on the following :-
Initial Debt £17000 + £3000 IVA fees = £20000 due
Total PPI recovery via IVA less 30% recovery fees = £ 36200
Total paid by directly by client during IVA term + 1 year = £12250
Balance remaining and therefore due direct to client = £28450.00
The questions I have no idea about is ......he doesn't think he has all the paperwork from the initial commencement is 2007 so can he apply (and are the IVA bound) for an SAR to supply all paperwork so he can validate the above assumed figures ( these are from his recollections but he thinks they are in the close ballpark )
Are the IVA company entitled to retain any monies over and above the cost of the initial debt on which the IVA was based and the subsequent and clearly outlined fees for handling the IVA.
It initially appears to me that this company are milking my friend dry and if he is entitled to this money I will do my damnedest to ensure he gets it.
Having been a member of this forum for some time ( NRAM mortgage prisoner ) I have read horror stories of unscrupulous IVA companies getting away with murder and facing no issues of recrimination and the claimants losing out on too many occasions.
I hope I have provided as much advice of what I understand the situation to be but if additional info is required please ask and I will endeavor to obtain this from him where possible.
He is not exactly a vulnerable adult but his reasoning and grasp of the situation at hand has, I believe, led him to be taken advantage of by these companies and I want to ensure that this stops now and he is treat in a fair and reasonable manner by all the companies involved.
Thanks in advance
