Mike Reeves is a sole practitioner who has specialised in insolvency since he first worked for the Official Receiver’s office in 1975.

The recent events surrounding the TIX Compliant IVA, the marching orders issued to IPs and the social exclusion caused by the TIX actions has left Mike concerned and worried that Insolvency Practitioners might lose their licences by cooperating with TIX on IVA price-fixing. Maybe his worries are rightfully founded?

Mike has been most concerned about these forced changes and the legal implications for agreeing with the TIX Compliant IVA demands. Some have said that it may be illegal for Insolvency Practitioners to agree to the Insolvency Exchange dictated fee schedule because that would be a form of collusion and price-fixing in itself.

In communication with TIX Mike has not been able to satisfy himself that the bank clients of TIX are not acting in contravention of competition law.

See the email exchange below.

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From: Mike Reeves  Sent: 09 August 2007 12:15
To: [TIX Person]
Subject: Legal opinion on possible creditor cartel

Dear [TIX Person]

I am an insolvency practitioner and you receive IVA proposals re my clients.

I am concerned, as a result of reading articles published in the last couple of days on the internet, that your TIX clients may be in contravention of competition law, and that if so your company may be assisting them in that illegality, and I as an IP may be colluding with you and your clients if I adhere to what you have recently requested in your letters sent to me.

Do you and your clients have a legal opinion please to the effect that what I say above is not correct.

Yours sincerely,
ML Reeves

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From: [TIX Person] Sent: 10 August 2007 15:38
To: Mike Reeves
Subject: FW: EXTREMELY URGENT - legal opinion on possible creditor cartel

Mike,

[TIX Person] is away on holiday at the moment so I’m jumping in to reply to your question.

There have been a number of published comments in the last few days about TIX's activities however, much of this has been factually inaccurate and misleading. We are satisfied that TIX's procedures are consistent with its legal obligations. If you are concerned about your own legal position we suggest you seek your own legal advice.

Happy to discuss any of the information contained in the recent communications from TIX if required.

Kind regards,
[TIX Person]

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From: Mike Reeves Sent: 10 August 2007 16:12
To: [TIX Person]
Subject: EXTREMELY URGENT - legal opinion on possible creditor cartel

Dear [TIX Person]

My concern is as to the legal position of your client banks - not primarily your position - since if for example there is a cartel then it must be because the banks are operating together through you.

I am sorry but this is sufficiently serious so that if you are not in a position to confirm that you have or have not taken legal advice on the matter, and, if you have taken advice, the advice received, then I appear to have no alternative but to inform the Insolvency Service of what you say, or are not prepared to say, and to take the matter further.

Yours sincerely,
Mike Reeves

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From: [TIX Person] Sent: 10 August 2007 16:40
To: Mike Reeves
Subject: RE: EXTREMELY URGENT - legal opinion on possible creditor cartel

Mike

Thanks for the note back. 

Your original note below highlighted your concern regarding your own position given what you have read in  articles you may have seen published on the internet.

Whilst  each of our individual clients and ourselves here at TIX are very clear on our own position, I am neither insured or qualified to give you legal advice hence my note below that if you are concerned about your own position then you do need to seek your own legal advice.

I’m more than happy to provide clarification on the content of the information cascaded. Do give me a call in this respect if required.

Kind regards

[TIX Person]

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Without a legal opinion to stand behind, Mike, in an effort to protect his Insolvency Practitioner’s license, felt he had no choice other than to issue the following statement to TIX clients HBOS, HSBC, RBS, M&S Money & First Direct.



NOTICE OF INTENTION NOT TO COOPERATE
WITH THE BANK THROUGH THE INSOLVENCY EXCHANGE

I am an insolvency practitioner working with IVAs.

You will be aware that you and other banks have given instructions to insolvency practitioners (IPs) through The Insolvency Exchange which you expect to be followed in connection with IVA proposals. The instructions include ones which restrict IPs fees.

You may also be aware from articles published on the internet that the question has been raised as to whether the instructions given by you together with the other banks is evidence of the existence of a cartel, or other contravention of competition law.

I have been in contact with TIX to seek information as to whether they have received legal advice to satisfy themselves and others concerning the possibility of the contravention of competition legislation, and I have not received any indication that they have received such advice.

Have you received such advice please, and if so may I please see a copy?

If it turns out to be the case that your bank is in contravention of the law and that TIX are assisting you in that, then I must not act in collusion with what you and they have done.

Consequently I trust you will appreciate that in the absence of a satisfactory response I cannot cooperate with your requirements, since I must presume at present that my cooperation could be held to be collusion in an offence.

My regulatory body would no doubt take action to remove my IP license if it were to be found that I had so colluded.

I would be glad to discuss the matter with you, and I look forward to hearing from you if you consider that appropriate.

At present however I appear to have no alternative but to say to you, which I do, that I propose for the time being not to cooperate with the requirements which you have expressed to me through TIX.

I draw to your attention that TIX have, in their communication to IPs dated 18 July 2007 indicated that their response to IVA proposals received by them on your behalf will differ according to whether the documentation is submitted to them in a form which complies with their requirements.

In view of my need not to cooperate with your requirements I ask you, in all the circumstances, to instruct TIX not to proceed with such a differentiation pending resolution of the position, and to confirm that you have done that.

Yours sincerely



He has also drawn the attention of his authorizing body to the issue and requested guidance.

Mike asks other IPs, if they are not satisfied over the potential collusion issue, to: - write similarly to the banks in which case the bank contact details are as provided by TIX :

Phil Leyland, Head of Debt Recovery Services, HSBC Bank plc, 12 Calthorpe Road, Edgbaston, Birmingham B15 1QZ

Euan McPherson, Head of Recovery, Strategy & Policy, HBOS plc, Trinity Road, Halifax, West Yorkshire HX1 2RG

Sandra Reynolds, Manager, Provisions, Collections & Recoveries, Retail Risk, RBS Group, Business House B, RBS Gogarburn, PO Box 1000, Edinburgh EH12 1HQ

Chris Broom, Head of Credit Services, First Direct & M&S Money, 40 Wakefield Road, Leeds LS98 1FD

- and also write to their authorising bodies to request guidance over the issue.

Mike also asks IPs, their colleagues and families and staff and clients to sign the No 10 Downing Street Petition and that members of R3 should email Grumney@r3.org.uk and ask why they are not publicising the petition, and for feedback about what are they doing to save their members’ jobs.

You may also like to join in the forum discussions on the Credit Today and the Credit Collections & Risk websites.


If you would like to contact Mike Reeves directly he can be reached at mike.reeves@freefromdebt.org.uk