Payment Protection Plan Rules

The new Payment Protection Plan regime applies to invoices issued after January 2013 against terminated companies.

How does the PPP work?
All FIDI Affiliates make an annual contribution to the PPP Fund, which is used if needed when a FIDI Affiliate is terminated.
FIDI's Payment Protection Plan (PPP) helps you recover up to 90% of unpaid invoices, should your FIDI partner go bankrupt or be terminated from FIDI.

What happens when an Affiliate is terminated?

The termination is immediately communicated to the FIDI membership through a FIDI Flash e-mail and published on the FIDI website.
The deadline to report unpaid invoices by the terminated Affiliate is 45 calendar days after the termination date.

Within 90 days after the end of the financial year, the FIDI Office will:
- Process all correctly reported invoices;
- Calculate the amounts for distribution;
- Inform all beneficiaries of the result.

If the company is terminated because it is no longer operating (e.g. following bankruptcy)
Payment of 90% of the eligible invoices will follow. Within 90 days after the end of the financial year, FIDI will:

- Process all correctly reported invoices;
- Calculate the amounts for distribution (within the limits defined above)
- Reconcile with the beneficiaries listed by the payment protection programs of other industry organizations, such as IAM and LACMA, with the assumption that double coverage should not increase the amount of cover the participant has;
- Inform the potential PPP beneficiaries of the result.

If the company is terminated from FIDI but is still operating.
Written commitment from FIDI to pay 90% of the value of eligible invoices in exchange for immediate and full subrogation (i.e. transfer of ownership) of the eligible invoices. Within 90 days after the end of the financial year FIDI will follow the same process as explained above.

The limits of the distribution of funds:
 The annual pay-out cap of the PPP is 1 million EUR;
 The pay-out per defaulting company is capped at 500,000 EUR;
 The annual cap per receiving party is 200,000 EUR (i.e. irrespective of the number of slow payer "cases" for this party).