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Answers to all your PPI claims questions if you are in or have been in a DMP or IVA or Bankrupty
By emmy7
#29866
Hi, we've received an confusing thing from DFD and have been asked to sign it but I don't get what its for. They told my husband that because our IVA is due to end next October and the PPI claims are taking ages to sort out they could hold up the IVA completion date so it would be better for us to sign this Deed of Assignment so the completion can go ahead regardless of the PPI claims being completed but if PPI claims are successful after the completion all the moneys have to go to our "assignee" to be distributed to our creditors. Ok I suppose but there's no mention of a time period and it has me concerned that it effectively means our debt situation isn't over even if we get the IVA completion certificate. It also concerns me that they may be able to go after any other money we may get or does this Deed only apply to PPI claims?
Have others had this, is it safe to sign??
#29868
Hi there emmy7 and welcome to the forum

If you agree to this deed of assignment it means that your PPI compensation must be paid to your creditors even after your IVA has been completed. Agreeing this before your IVA has completed is actually not such as bad thing as it should mean that DFD will send out your completion certificate quickly which will mean that your IVA has officially ended.

Some IVA companies can delay sending your certificate and officially closing your IVA while they wait for any PPI compensation due.

Just make sure the form only includes your PPI compensation and no other monies. this should be the case though.

Have a look at the information linked below, it will help you understand what should happen after your IVA has ended.

what-happens-when-my-iva-is-finished
#29869
Hello emmy7

This is something that DFD have started to do recently. Basically they know that the process of sorting out PPI claims can drag on past the date when you make your last payment into your IVA. The problem they have is that if they issue you with your IVA completion certificate and formally end your IVA before these claims have been worked through there is a risk that any subsequent PPI compensation awarded will go to you rather than into your IVA. They have a duty to stop this (and a financial incentive :)).

By getting you to sign this deed of assignment they can safely issue the completion certificate because you are basically confirming that any subsequent PPI compensation you receive will still go into the IVA even though the IVA has formally ended and all of your other obligations are finished.

Actually this is a positive move by DFD. I know of some other IVA companies who have actually delayed completing people's IVAs for many months or even years on the excuse that they are waiting for PPI claims to work through........

Before you sign this deed of assignment you should check that the deed only relates to PPI claims (I have not seen a copy myself but based on others experiences I am fairly confident that it does). Given you are happy about this you should sign it as it will help speed up the completion process once you have made your final payment.
#29877
Thank you for your replys, after googling and reading other forums/info I've read something a bit worrying concerning changes to the equity check, the rules of the Iva are that we must release equity with a remortgage, that's pretty standard stuff, however the booklet that DFD have sent, containing info relating to the 2014 changes in protocol, state that we should also be encouraged to seek a secured loan if a remortgage isn't attainable, our previous documents do not include this secured loan statement its ONLY states we must remortgage. Should I be worried about this, we don't think theres equity in the house at all so it probably isn't likely to relate to us but I am worried that we'll be forced into a loan at the end of all this!!
#29884
Hi emmy7

As the other posters have said this deed of assignment you have been sent is now standard practice from DFD. It should relate only to PPI compensation that you are awarded after your IVA is completed and no other windfalls. If you feel it is not clear then I would ask DFD to confirm in writing. Once you are happy it is sensible to sign the deed as this will then ensure your IVA is formally completed after you finish your payments in October.

In terms of whether or not you will be encouraged to release equity from your property with a secured loan this will very much depend on the wording of the terms and conditions of your IVA. It is correct that your Insolvency Practitioner has a duty to maximise the amount you repay to your creditors and so if there is equity in your property but you cannot re-mortgage then considering a secured loan is a logical next step. However remember that you are still protected by the fact that even if you could get a secured loan you will never be asked to increase your total secured borrowings beyond 85% loan to value of your property and the monthly secured loan payments could never be more than 50% of your regular IVA payments.