I’m a new member to this forum and I was hoping there would be someone who could answer a question for me.
I have had an IVA in place for just over a year now. One of my debts was an overdraft on a joint current account with my wife. This was accepted into the IVA and I thought no more about it.
However, the bank has since withdrawn my name from the account and transferred the debt into my wife’s name, then sold the debt to an agency who are now hounding us for the full amount of the overdraft.
I know now that we should have removed my wife’s name from the account before taking out the IVA, but what’s done is done.
Can the bank lawfully continue to receive a percentage of my IVA payments and then sell that debt on to a debt collection agency?
I would appreciate any advice as to what I can do about this.
If the bank has sold the debt then the new owner will receive the IVA payments as well as any money from your wife. There should have been an allowance made for your wife to pay towards this debt as it would have been very difficult to remove her name from an overdraft.
Michael
Thank you for your reply, I didnt realise the IVA went to the buyer of the debt.
This actually happened last February and we made a payment arrangement with the company to pay £20 per month. It has been fine until now as the debt has once again been moved (sold) to another company who are demanding payment in full.
Is it a case of treating this debt as a new debt in my wife's name and offering to make reduced payments again? The amount owed is £3600 and we just don't have that kind of money
Thanks
My wife was a joint account holder and I too dearly wish that I'd removed her from the account prior to the IVA!
The bank has removed me now due to the IVA but has put a debt collection agency to work to get money from my wife.
Find out if they have really sold the debt or are just acting on behalf of the bank. If they are just acting for the bank they cannot add anything to the debt like fees or interest - only the bank can do that.
If they have bought the debt, they might accept a much lower final settlement fee than you'd expect as they buy the debts for a fraction of their actual value.
Don't put any personal information or identify the bank or debt collector on here - anyone can read this forum.
It is important to remember that even though you're both liable there is only 1 debt. If either of you make a payment that one debt reduces. Whoever owns the debt receives the IVA payments.
Debt collectors can be awkward to deal with and I'm no expert, but remember that they have only one tool- fear.
They may try to frighten with words like "court", "bailiff", "summons", red bold text, threats of a personal visit and warnings etc... but there is a code of conduct they must adhere too and even though they may try to make you think it's constantly on the verge of court action, that will likely be their last resort and will be risky for them. They might tell you what the court "will" do (like award them costs or send a bailiff) but they cannot possibly know for sure what an impartial court would decide.
Read up online about debt collectors. Don't be afraid, they have no powers or authority whatsoever, no more than you yourself in fact. Study about them online and you will reassure yourselves. Make sure you're reading UK sites though as USA of course has different laws.
Communicate with them via letter only, but respond promptly each time and always make offers to pay a reasonable monthly amount.
We're still negotiating with ours... but I've found so far if we answer promptly they stay polite.
Based on the advice I received I can tell you that it is important that no money from your personal income goes towards this debt outside of the IVA. To do so would be a violation of the IVA terms because it would be creditor favouritism. Only your wife's personal income should be used. I am saying this because they might ask for details of your income too hoping to get some money from you.
Hope this helps - keep us posted!
Last edited by hubert on Sun Nov 03, 2013 12:27 pm, edited 1 time in total.
hubert
Thank you so much for your advice and dare I say support! In a way, and I don't mean this to sound wrong, but its nice to know we're not the only ones out there with this problem. Just the fact that someone understands is helpful. Thanks for the advice and support. I hope all turns out well for you in the future. Good luck.
Send a copy of the IVA to the new owner of the debt and they should be happy to continue receiving the £20. Any problems and your IP may be able to help.
This has happened to me my wife who is not in the IVA has her name on the overdraft although I am paying it under my IVA .For the last 12 months we have had 5 debt agencys chasing and hounding her they keep changing companys when they are getting no where fast. And she isn't very well she has poor health..She is scared now to answer the phone..But fortunately my IVA company have sent the last ones a letter and it seems to have stopped for now..she has no income not even a bank account anymore so I would be expected to pay it and I am already doing that.One of the companys was quite nasty in their manner ..I do object to the Bank handing my number out to all these strange companys as I have noticed a increase in nuisance calls..I am doing my best to pay it off under the IVA and I have been told by my IVA Company not to get into any exchanges with these companys..
Ruffin - unfortunately in joint debt - both party are liable for the full debt,minus any payments you have the security of your IVA - however you wife does not, The bank are well within their rights to pass the debt on to debt agencies. It may be your wife either has to come to an arrangement with the debt companies or seek her own debt solutions
She cant come to any arrangements if she is to ill to work and has no way of paying it..The bank account was mine she was only put on it a few years before the IVA I am the only one in the home with a income..Having debt companys threatening her has made her even worse she has been quite ill recently..She has even said she would be better off dead than have this hanging over her head .Which isn't what I want to hear when I come home from work..
I'm really sorry to hear about these people hounding your wife. The only reason they do is to scare you because they have no power or authority whatsoever. If they did they'd use it - simple.
They are not allowed to harass your wife.
I think you can assign a charity to take the case for your (or your wife) that might be worth looking into.
