Latest update following my email to IP asking for evidence of statutory interest clause in my proposal:
"Please refer to Para 14(2) of your Proposals as follows: After-acquired assets must only be sold or realised to the extent necessary to repay the creditors in full with any interest they are entitled to under the arrangement."
It then goes on to say: "Your inheritance is an asset, realised after your IVA was approved. Statutory interest is calculated at the rate of 8%. If you had not taken the IVA, the interest accruing on your debts would have been at a higher rate."
I have set out in email to the IP my request for a variation to waive interest and my reasons why. I have worked out today that I have been refunded PPI for a total in excess of £15,000 by my main creditor (with whom I also had bank accounts that I was being charged for monthly!). I plan to mention this in my call with the Payplan Team Leader tomorrow. I would never have got into the financial mess if it hadn't been for the PPI mis-selling and Lloyds giving me loans and credit to pay off debts to them that I had no chance of affording in the first place! Hopefully this will add to my argument.
To be fair, the response to my email from the IP said they would be "happy" to propose a variation to creditors based on the personal circumstances I have already given.
I hope this does get resolved for you especially as Payplan are one of the companies that the Banks send to when there are debt problems. We are an independent firm but we have in our proposals that statutory interest is waived despite being in the terms and conditions and creditors rarely have an issue.
It would obviously be better for us to not waive statutory interest as we would get 15% of it as a fee but profits are not always the only motive.
I agree Michael. It does seem perverse to add on this extra burden when the debtor has actually paid the full debt, whereas the majority of us get thousands written off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
I hope this does get resolved for you especially as Payplan are one of the companies that the Banks send to when there are debt problems. We are an independent firm but we have in our proposals that statutory interest is waived despite being in the terms and conditions and creditors rarely have an issue.
We also waive it in the proposals but sometimes creditors (HMRC) modify to put it back in!
It would obviously be better for us to not waive statutory interest as we would get 15% of it as a fee but profits are not always the only motive.
Sorry for the delay in update. It was so upsetting that I confess to going out and drowning my sorrows. It didn't go well from my perspective.
I was told that they would be willing to put forward the variation to waive interest given the personal circumstances I had cited but that it would be treated as a "full and final settlement offer" and could take until December for the meeting to be held and decision made. The offer could either be accepted (but any future assets, such as PPI refunds (for example)), would go to my creditors or it could be rejected and I would have to pay 100% or, wait for it, they could make me bankrupt. I was devastated. I ended up in tears and said I felt threatened and that the whole process was unfair and cruel. I just don't have the strength to go on with this any longer and have been made to feel as if I should just pay up now and get a completion certificate (which I was told I could get within 28 days if I pay in full). I was told to "consider my options" and have another call booked on Monday to let them know what decision I have come to. So upset.
Payplan are notorious for saying they will make people bankrupt - they threatened me with this and I made them take that clause out which they did.
I didn't have to have anything to do with PPI but my husband did. He completed his IVA but any PPI will go to the creditors.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This is shocking and to say that it can take until December for a variation to be called is appalling. Demand to speak to the IP and put your request for the variation in writing and give them 21 days to call the meeting as per the usual terms and conditions.
This sounds almost like blackmail so I would think an official complaint is required. You will need to use their internal procedures first and hopefully they can deal with complaints quicker than variations!
I am still in shock - thanks for the advice Michael. They have frightened me though with the bankruptcy and I am still in two minds about whether to just pay up. I feel as if my chances of success are slim because I do have (on paper) more than enough to pay it but in reality I have personal circumstances like an interest free mortgage with no means of paying off, urgent house roof repairs, replacement boiler which is 30 years old and never serviced and woefully inadequate pension arrangements. I will keep mulling this over in my mind until Monday.
Get them to remove the bankruptcy option - they did it for me and they have done it for other posters as well.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This idea that creditors can make you bankrupt for proposing a variation is pure nonsense and we have seen this many times from Payplan in the past. If you propose a variation and creditors reject then the proposal reverts to what it was originally. Only if you are in default can it lead to bankruptcy proceedings so offering a full and final does not lead to bankruptcy!
Demand to speak to the IP and ask them to explain how creditors can make you bankrupt when you are not in default and you are only asking for the statutory interest to be waived. I would ask that if this threat is actually not real then was it only said to bully you into paying the interest plus the extra fee that would involve and see what the IP says.
You are also entitled to have your variation proposed within 21 days not four or five months and if you do not get satisfactory answers then make a complaint.
