Can Creditors default on the terms of an IVA?

[Endsmeet]

Just a quickie, having seen what has been happening to Angelrainbow and a few others on here, can the creditors be in default of the T&Cs of an IVA?

Surely when an IVA states that no more communications or demands must be made from the creditor when an IVA is approved and they keep phoning over 2 months later (up to 5 times a day in Angel's case) is a breach of the T&Cs ???

If it is, then why do they keep on doing it or in a better way of saying it 'How can they be allowed to keep doing it?

[LoneRanger]

It does sometimes take a while for the information of your IVA to filter through the departments, but not sure how long it would be acceptable to expect some kind of correspondance from creditors.

[creditcrunched]

yes it does take too long for the info to reach everyone i just kept giving my ip`s phone number and told them i was in the process of an iva it did stop but it was a full 2 months after the iva was accepted

[kallis3]

Interesting one Endsmeet!

I remember being told by my IP after my creditors meeting that I would not receive anymore calls, and to be fair, apart from one on the night of the IVA, I haven't had any more at all.

I was told that it was illegal for them to contact you. Perhaps it is about time some of these IP firms threatened to take them to court.

[Endsmeet]

So basically 'how longs a piece of string'

I thought that once the IVA was accepted that it should instant in this day of technology or is that silly of me to think that?[:(]

[LoneRanger]

The information of someones IVA would certainly pass through the departments alot quicker if that was to happen Jan.

[creditcrunched]

i think it depends on how many creditors you have and the size of departments one doesnt know what the other is doing i didnt care as mine was accepted i dont think you would be able to hold them against a breach because they will just say they havent recieved the final documentation

[Endsmeet]

Spot on Kallis3, thats what I was thinking.
I wonder if the I.P.s actually do have that power?

[kallis3]

To be fair to mine, it was only two hours after the IVA had been approved that I had the call, and they were quite happy when I told them. Obviously there was no way they could have had official notification.

Perhaps IVA firms should insist on a 'return receipt' on the documentation they send out, and it should go recorded delivery. At least they could track it then.

Of course you could have your phone number changed - this would stop any calls. I changed my mobile number to stop Mercers constantly phoning on it. The house phone had an extra number with Broadband talk anyway, so I just unplugged the normal phone.

[Endsmeet]

Yeh, thats is a solution but again I suppose it depends on someone at the creditors end imputing the details into the system.

All of my creditors apart from LTSB have never been back in touch once my IVA was accepted but again, why should LTSB be any different after all they are a market leader ...or so they say[;)]

2 months is a long time for anything to filter thru anyones system...

[kallis3]

Perhaps it is time for everyone who is being hassled to inundate the ceo at Lloyds with letters - see how he/she likes it!

[Endsmeet]

Perhaps it is time for everyone who is being hassled to inundate the ceo at Lloyds with letters - see how he/she likes it!

[:D][8D][:D]

[liberta]

Hello all.

Once the IVA has been approved, the IP will send all of the creditors a copy of the chairman's report to inform them of the IVA's approval and signify the fact that the creditors are not free to pursue you any more but should approach the Supervisor of your IVA for any further information.

Unfortunately as Steve said it can take some time for the information to filter down to the collection centres. This is problem is exacerbated with certain creditors who do not have a fully intergrated computer system - e.g. branches, collections departments and legal departments all work off different systems. Further problems are also caused when a debt has been passed from one external collection agent to another.

If after the approval of your IVA you still continue to get the hate mail and phone calls from your creditors, refer them to your IP. Be sure to send copies of any letters you receive from your creditors to your IP as well. He or she will then deal with the creditor and ask them to amend their records and stop contacting you directly.

With regards to the legal position, your creditors are not entitled to pursue you for the debts once the IVA has been approved. So they cannot take any action against you. Failure to recognise the IVA after a reasonable period of time amounts to harrassment and a creditor certainly commits and offence if it continues in its actions after being requested to stop. In my experience though the creditors usually stop the calls and letters before this becomes an issue. It is necessary to give them a general reminder sometimes.

I know that it is easy for us to say but please do not take these calls and letters personally -it is not a vendetta against you but rather people (like you and me trying to do their jobs and follow the instructions given to them by their management). Pass all the correspondence onto your IP and let them deal with it - that is what they are there for and they will sort it out. Please be patient though - we really do not want to piss all the creditors off by threatening taking them to court at every opportunity - we may need them to vote at a variation meeting.

[David Mond]

Well done Liz - very sound and practical advice. Anway if the letters continue - copy them all and report them to the OFT who I believe will be responsible for future prosecutions under the new EU directive as the creditors are not treating customers fairly. The legal position is that you are being harrassed and a report to your local police should help.