Thank you for your answer, neverending,
Looks like a no, we can't do that if it make things more difficult, according to T&Cs of IVAs.
So i have more questions!
Will it be worth asking the creditors during IVA negociations (by IP to politely request that any unlawful bankcharges applied to the account in arreas to be removed from the total due?
The gain is not taxable, it has the status of a debt to you.
Creditor can "charge" a debt on a third party owning you money (here, themselve) but the interest will be considered to be an income.
So your creditor will be entitled to pay back the money into your account (where you own money), unless the terms of the IVA are making the credit aggreement you had with them void, and replaced by the IVA contract?
Are the T&Cs of an IVA regulated? Could someone send me some so i can have a look and see if any terms stop you for claiming that charges?
Do you think that will reduce the lengh of the IVA?
Or be seen as an extra payment, and you will not really have any adventage for yourself for doing so?
Reclaiming after the IVA is not possible because of the limitation act, (6 years in England, NI, and wales, 5 Years in Scotland) unless you inform the creditor of your intention to do so, or that you are aware of the problem at the beginning of the IVA. It them voids the limitation act for your right to claim.
That could be a road to explore?
The next problem is the one year review, as i understand it is a point when the creditors can change the contract, depending on your circonstances?
We do advice to open a second account to operate from, as a few banks (3 i know of, don't know if i can post names?) close the account , and claim the overdraft, Once the court is made aware of this, they have to stop as the court will consider that they are putting pressure on you because of the court claim (guess what, that is unlawful as well...) and can order all action to be stopped for that account until the claim is settled or judgement is granted..
You can also put formally the account in legal dispute, (seems obvious it is, as amount is been disputed in court, but bank ignore that "detail", in order to pressure you to stop claiming).
Then all action must be stopped on the account.
The process of reclaiming the charges i think should be done sort of through IP, when looking at amount due by creditor, to remove the unlawful bank charges?
The process is simple, but it is a battle, and if you are already up your neck with efforts to sort it out, an IVA will get you out of most of the pain...why take more?
I will give you an example of one of our member,
he owns overdraft £430
Credit card 1 £4500
Credit card 2 £6200
Loan £12000
Total debt: £23130
was asked to repay more than he could afford as his circonstances changed: (he had a serious unforseen medical problem)
when he received his 6 years statements, he realised that bank own him £1200 in charges (more than overdraft he was getting Debt collectors for!)
CC1 £950
CC2 £1200
Loan £530
total charges: £3880
so his debts were really £19250
Will having the charges out of the total make a real difference if he was to need an IVA, as the only way out of his situation?
Another bad point for someone in financial distress, is that the process takes months (getting shorter with the help of judges, as explained above)
Even if the actions are stopped, what is the point where i can say
"don't bother, go for IVA, you need help now"
Or should we contact IP and inform them of the situation, will they consider it in the situation?
