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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Good Day,In 2008 I became redundant in my work as a sub

Customer Question

Good Day,
In 2008 I became redundant in my work as a sub contractor to Thorn Marine Services (Now Tyco); In my line of work in the UK and Spain, I needed to use credit cards to finance my travelling to and from work, accommodation in hotels and purchase of transport and equipment. The redundancy came as a shock after I had presented a fit-note to the company for a special project in Germany aboard a P&O cruise liner. The fit note stated; 'In spite of his heart disease, Alex is quite fit for work?' After that rather subtle note from my doctor I was never offered another contract so had to retire at age 68 and as a result had no way of re-paying my credit card debts to 13 card companies/banks.
I duly applied for an IVA and this was granted on the 5th. Feb 2009. My insolvency practitioner was, Steven Muncaster of MCR Corporate Restructuring; 11 St. James Square; Manchester M2 6DN. (Later to be known as Duff and Phelps Ltd. The Chancery, 58 Spring Gardens, Manchester, M2 1EW.)
I completed the IVA on the 19th. March 2014. A completion certificate was issued by Duff & Phelps and I understood that this was the end of my contract with all my creditors and Steven Muncaster signed my certificate and confirmed that he will no longer be acting as joint supervisor in my IVA arrangement.
However, on 02 of September 2014 I received a letter from Duff& Phelps signed by Steven Muncaster, ( my Ex insolvency practitioner) who stated that ' as supervisor of your IVA I am obliged to realise any assets which are available for the benefit of your creditors under your proposal? He then set out that during my days of using the credit cards which led to my insolvency, I may have been miss sold PPI and that any money due to me should be signed over to a PPI Financial Management Company, in this case Red Star to be then handed to him for distribution to the creditors that I had concluded my arrangement with in Feb. 2004?
Red Star duly contacted me and sent me reams of paper that had to be signed to allow them to take whatever they could find. This money was classed by Muncastar as an asset at the time of my insolvency and therefore belonged to my creditors once the Fees charged by Duff & Phelps and Red Star had been deducted. I was to receive nothing though I was expected to answer in writing all the queries from the various institutions as well as extensive questionnaires from Red Star where they demanded that this list of very personal information was mandatory and must be returned to them. They even targeted my wife, who is suffering from dementia so I have very little time to devote to this as I am her only carer. I feel that I am being harassed by Red Star and have refused to comply. I am questioning the legality of what they are trying to do to increase their own earning from the creditors as I had never submitted any claims and did not intend to do so on the premise that the creditors had been fair with me so I would not claim back any PPI that I may have been owed by them. I honestly did not think I had even entered into a PPI agreement, yet two have come forward, one has sent a payment to Red Star and the other sent a cheque to me which I have banked pending some legal advice as to the legality of this claim. I am still refusing to complete the questionnaires that Red Star has sent and have not replied to most of the more than 50 letters that they have bombarded me with. I would like your comments on this please.
In my book, if I had taken out PPI and this had been acted upon, then when I became unemployed the PPI should have kicked-in and paid my debts and this may have resulted in me not having to become insolvent in the first place. The other aspect is how can it be legal to claim for something in the past when the IVA contract has been complied with, at the time, no one knew that there would even be a PPI claim ruling by the government that would cost the banks billions, by comparison, it makes my own insolvency seem quite puny.
Alex Notman.
5 Dabey Close,
Markfield.
LE67 9UJ.
Tel; 01530-249253.
Mob: ***********
email; *****@******.***
Submitted: 2 years ago.
Category: Law
Expert:  Nicola-mod replied 2 years ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 2 years ago.

Good morning Nicola,

I would like you to continue with this.

I am being bombarded with letters from the PPI Claims Management company 'Red Star' of Manchester with requests to complete their questionnaires and provide personal information regarding my dealings with 13 credit card companies over five years ago.

They are doing this to try to recover compensation for any miss sold PPI's that I may have taken out during the period when I was using credit cards. They coheresed me into signing over to them any compensation that is recovered, to them so that they can use that money first to extract their own fees, then to pass the balance to my ex insolvency supervisor at Duff & Phelps, Manchester who will then extract his fees then hand the balance back to the credit card companies that may have been involved at the time of my IVA with not one penny being paid to me.

I consider this to be harrasment and since there is no benefit to me I want it to stop but it all hinges on wether what they are trying so do is 100% legal or are they taking a chance on pulling a fast one one what they may regard as an old age pensioner?

I have set out the circumstances in my previous question including names, dates etc. and am able to provide to your legal expert any further information that may help. I would have thought any legal expert specialising in insolvency and IVA law would be able to answer my question which basically is 'do they have the legal right to what they are doing and can they force me by law to comply with them and at what potential cost to me'?

Thank you,

Alex Notman.

Tel: UK 01530-249253.

email *****@******.***

email *****@******.***

5 Dabey Close, Markfield,

Leicestershire, LE67 9UJ.


Expert:  Nicola-mod replied 2 years ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Customer: replied 2 years ago.

Hi Nicola,

I understood that you had experts on your pay role and that they are all in-house so to speak, does this mean that you have to find some expert from outside your organisation then contract him/her to deal with my legal question? Does this mean that once you have found the expert I will then have to pay more to have me question answered? It would be best to let me know this before it goes too far.

Regards, ***** *****

Expert:  Nicola-mod replied 2 years ago.
Hello,
You will not have to pay any more. We have various Experts on our books and when I am looking for an Expert I am trying to match one of those Experts with your question.
Thank you,
Nicola
Customer: replied 2 years ago.

Hi Nicola,

OK, I'll wait and hope for the best.

Al.

Expert:  Nicola-mod replied 2 years ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Customer: replied 2 years ago.

Hi Nicola,

Why does it take so long to answer such a simple question? If you can't find any expert to look at this then please let me know and refund my money, I am sure that I can get the question answered by the Citizens Advice people.

Al.

Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
For now please let me know whether the PPI related to any loans included in the IVA?
Alex
Customer: replied 2 years ago.

Morning Alex,

Before it was neccessary to enter into an IVA, I did have outstanding credit card debts, these were not for loans but were for for services purchased via one of the 13 credit cards. I was not aware that I had eneter into any PPI contracts with any of these card companies but the search has found two and the rest have reported that there was no PPI with them. However, this has not stopped me from being harrased by RED STAR the company engaged by Duff & Phelps to provide further information that is not relevant to their search. They already have the names of all the creditors and Duff & Phelps have all the details so I don't know why they need any more infor from me. I am a full time carer for my wife whi is very poorly with broken ribs, sternum and hip so it leaves me very little time to be messed about by claims that I never even asked for but which were started by Duff & Phelps to try to get more money from the creditors that they say will be paid back to the creditors, this seems crazy and can only be so that they can charge my ex creditors more in fees. I have paid back all money due under the IVA and am now clear of debt. I don't need this harrasment and I am not interested in climing any PPI.

Alex Notman.

Expert:  Ash replied 2 years ago.
Have they threatened you with court or anything?
Customer: replied 2 years ago.

Hi Alex,

No, they have not made that type of threat, but have stated that completing their questionnaire is 'mandatory' giving the impression that it is a legal requirement.

One of the creditor banks that they contacted sent me a letter direct stating that Red Star were not authorized to act to collect PPI compensation and that their name did not appear on the ministry of Justice website, and it was this that made me suspicious!

Once the IVA started I was not allowed to have a bank account or credit debit card at all so no loans were taken out during the entire IVA period over just over five years. They opened a special bank account for me called the One Bank that allowed my pension to be paid into it and the IVA repayments to be taken from it. It did have a debit card but this had to be loaded from the account and that amount was all the card could be used for.

I have been ignoring all requests but they continue to send letters, I must have received over 50 now. I am convinced that they are pulling a scam and that any compensation due from any PPI that I may have paid into the credit card companies should belong to me after their 25% fees have been deducted and that any balance should not become an asset that has to be paid to the creditors as that whole thing was a legal agreement that I have complied with 100% paying every single repayment.

I am hoping that you will find that what they are doing is not legal.

Thank, Al.

Expert:  Ash replied 2 years ago.
Ok, you want to write back and say they are harassing you.
Send it recorded delivery and say every letter you receive you will charge £12 administration for.
Then once they stop, tot it up. This forms your loss.
You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.
If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.
Can I clarify anything for you about this today please?
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
Ash and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Hi Alex,



I was about to start the letter to Red Star as you suggested and had just finished counting just the number of pages in the questionnaire that they expected me to complete and it amounted to 40-pages of A4. Then I received another letter from them telling me that they were running out of time and need these questions to be answered as soon as possible or they may have to raise an invoice to bill me for the extra time and letters they are having to send to me.

Now this IS a direct threat and since it was not me who initiated these searches, but the insolvency practitioner, then how can they now bill me?

I am also waiting for advice on the same subject from a Barrister.

Any comment would be welcome.

Regards, ***** *****


Expert:  Ash replied 2 years ago.
They can't bill you.
Its all a bluff.
Alex
Customer: replied 2 years ago.

Thanks Alex,

I thought it may be, so I will start the letter to them as a reply to their threat to bill me in the morning then send it recorded delivery and mention that I am going to bill them an admin fee for all the letters that I have had to deal with as you suggested.

The reason I have contacted a Barister is that I need to know if their whole project to recover 100% of money from my creitors which should be due to me as compensation for my creditors miss-selling PPI to me; is in fact legal and if they have a legal right to persue me in the way that they are doing. Once I have the answer to that question then I will feel more confident to go after them 100%.

Best regards, ***** *****

Expert:  Ash replied 2 years ago.
Good luck!
Alex