Concerns about fraudulent IVA proposal

[ilikewatch]

Hello all, - this is my first time posting, so hi, and I hope I'm putting this in the right place!

I am in the process of trying to get accepted for an IVA, and am using one of the major free debt counselling companies. I've started to get concerned about some of the things my case manager is telling me, and not quite sure what to do. When I first supplied my expenditure information my case manager kept "upping" the figures I was giving (i.e. I said I spend about £6 p/m on haircuts, he said no-one can keep there hair looking good for £6 p/m, I'll put it down as £13 p/m for you, and that sort of thing). Also some of the expenditure he's put down it utterly untrue, such as costs of £25 p/m for the cost of keeping a pet (I don't have any pets).

When I questioned my case manager about this, and said I wasn't comfortable about lieing on the forms, he said that everyone does it, and that his job is to try and win me the biggest monthly surplus he can so that the IVA will have the least impact on my lifestyle.

One of the other things which is worrying me is the tiny dividend that my creditors will end up with, - due to all my expenditure figures being so inflated it would mean that my creditors would receive a dividend of about 15p/£ - this seems completely unrealistic to me, though when questioned, my case manager assured me this was normal, and that he'd had success with lower dividends. I think that if my expenditure was quoted realistically I would be looking at offering a dividend of around 32p/£ which seems like a far more realistic figure, though I don't know what my case manager would have to gain by presenting a proposal which would be likely to be refused?

Finally, my biggest creditors are:

Halifax Personal loans.
Halifax retail banking.
Halifax credit cards.

- does anyone know what sort of dividend rates Halifax are likely to accept?

Many thanks for any advice!

[MelanieGiles]

That is an absolute disgrace - and as you can only be talking about one of two firms I am completely shocked at the fact that they are leading you to lie about your financial circumstances in your representation to creditors - especially as they are funded by the creditors themselves.

The level of dividend you are offering is irrelevant, the fact that you are being asked to put your name to a false proposal is far more serious and warrants a formal complaint. This may be an isolated experience, by an over-zealous case manager who genuinely feels he has your best interests at heart, but I would think that the IP concerned would be horrified to learn that such advice was being given to their clients.

If an organisation funded by creditors, is leading a client to falsify their IVA application to the detriment of creditors, they may have some serious questions to answer moving forward - and you may well like to look elsewhere for your professional support.

[back on track]

which firms do you mean melanie
as the 2 firms that are creditor funded arnt funded for iva only dmp.
dont they all have to stick to the guidelines about what to claim for.
i suppose that anybody can say they have pets and go to the hairdressers every month but how do the creditors know this?
i use one of the "funded ip firms" but they are pretty strict about the i@e sheet and i have never been advised to lie about anything.

[MelanieGiles]

I don't think I will name names - suffice to say we probably know who they are! Integrity is not about being found out lying - it is about being honest in the first place and being able to rely on proper advice from professionals.

If one of my staff engaged in giving clients advice like this, they would be dismissed without question.

[kallis3]

I'm disgusted as well! I am with one of the two firms and at no time was fudging the figures ever suggested to me. In fact on normal monthly expenditure we don't even get the amount that the other company suggests as guidelines.

You should put down what you spend and be totally honest about it.

I do agree that you need to speak to other companies - visit the link that ladyh posted or click on the experts link on the left hand side. You will find excellent companies on there.

[Pennyless]

Welcome to the forum ilikewatch and thank you for your post. It really sticks in the throat when you see some posters on here struggling with their IVA, after being placed on a tight and in some case unmanagable budget by their IP's, and yet other Companies are doing what you have said.

Again I have to breath a sigh of relief that I chose Melanie Giles as my IP!

[ilikewatch]

Thankyou all for your comments, - I'm going to have a look at the other options available to me in terms of which company to use. I'm also going to pass my concerns on to the management of the company concerned, I'm pretty sure that the problem is due to one case manager as I know other people who have dealt with the same company and have received a completely honest and professional service.

At the end of the day, my main aim is to repay the absolute maximum I can to my creditors, and fiddling my expenditure figures is never going to help acheive this.

[musicmadmac]

Honesty is the best policy, you should always leave yourself in a good position when filling out your income/expenditure form but making sure you're not being dishonest at the same time.

[kallis3]

Too true!

Always put down exactly what you spend.

I would certainly mention what you have been told to management at the company. I shouldn't be happening.

[Shining]

I always believe honesty is the best policy and therefore I would go with what the other posters have said and take a look around and get advice from another couple of companies before making any decisions.

[Max]

Iasked the volunteer solicitor of a charity for which I do some work about lies in IVA(her paid job is that of a Crown Prosecutor)- she said to submit an IVA which "contains known falsehoods is purjery both on the part of the debtor and of the person submitting it". She added that purjery nearly always means a prison sentence. As others of said, always tell the truth.

[Skippy]

That was what worried me - my IVA expenditure was complete rubbish, and although I queried it with the company a couple of times I was told not to worry.

I still can't believe I actually signed it.

[Max]

I am no doctor Skippy but my guess you signed it on account of stress - from your posts and blog(s) I do not believe you have a dishonest bone in your body!

[Skippy]

I didn't know what else to do, and I hadn't found this forum at that point.

To be honest, when you contact a company you think you are getting best advice and you trust them.

[Max]

How right you are that is the reason I believe that great care must be taken in the choice of IP - my case -7/8 said no chance - three suggested a rather dubious (to say the best of it) I/E - Melanie did mine - all included - all bluntly truthfull- all passed. As a matter of interest this lawyer said that ORs should have a part to play in IVAs as "they know dishonesty in a minority of firms goes on".