Hi! New poster here looking for some advice...
I am just over a year into my IVA and am managing quite well (bit squeaky some months as we all probably are!).
Had a letter yesterday from my IP informing me that 1 of my creditors is demanding much more than I had said i owed at the start of the arrangement and that I am in breach of my agreement. This has come as a bit of a shock and as I believe the creditor is trying to claim interest as well I have challenged and the creditor has to provide proof of the extra debt.
I dont believe they are right but am really worried now as i cant pay more than the £530 I am currently paying and would be gutted if they extend my IVA.
Anyone experienced this problem or can advise me?
Hi there, sorry to hear you're having problems, I'm sure an expert will give you advice on this soon. I can't understand how they agreed to your IVA over a year ago but are now disputing the amount, surely this would have been covered in detail at your creditors meeting and should have been fetched up by this creditor then.
What a shame your IP did not take a little more time to agree the level of that claim prior to the IVA proposals being finalised. As an IP who is often criticised for being too slow compared to competitors, I can absolutely confirm that time spent in fully researching a case from the outset is time very well invested on behalf of my clients.
What was the level of the debt included in the IVA, and how much is the creditor now claiming? Has your IP verified that the claimed sum is accurate?
Thanks everyone for responding.
My debt level is £46k and this one loan creditor is wanting another £9k. I am sure that its not right but am totally dismayed that such a different claim was even accepted at the agreement stage and was not checked by my IP. I know its my reponsibility to disclose the debts i have and i did so honestly. Isn't there a cutoff for counter claims by creditors or are we all at risk at any time of them trying to claim more?
I feel let down by my IP but will wait and see how my challenge turns out. Something is rotten in the state of Denmark...
Hi - that's awful. You need to get straight back on to your ip and ask to see the creditors' proof. Presumably you sent off your latest statement or similar when collecting your bits and this showed the outstanding balance? Mine all changed slightly to allow for interest and charges in the time it took for the proposal to be drafted and accepted but 9k couldn't be that?! Do you mind my asking who the loan was with and whether you had any other borrowing with them?
As Broke says, £9k is a huge amount for a debt to have changed between the drafted proposal and the creditors meeting.
I remember dealing with a company called Arrow who occasionally claimed for double the debt amount. If they ever had two debts, they would often claim for one separately and then a "combined" claim with both debts included. It was infuriating, but absolutely highlighted how important it is for an IP to investigate all claims that come in.
Barclays claimed double from me, 3years into my IVA, lead to a couple of months of issues and problems, but i had a letter from Barclays stating what i owed back when i started my IVA, i know my IP had the same letter so all worked out in the end. All i can say is call your IP discuss the issues with them, back track to your paperwork and see the amount originally owed that one bit of paper could sort this out.
The company is Beneficial Finance and they have changed their name several times since I took my loan out. When I declared my debts I asked my IP whether I had to pay amount outstanding or total payable and was told amount outstanding. The total was payable over 6 years and included interest/fees etc. I think that they are claiming this amount which I'm sure is not allowed??
Hopefully it is an error but until my IP gets back to me I will still worry of course. Its good to know that these things do get resolved though - i feel very much at the mercy of an IP whom I have lost a lot of faith in overnight
As a matter of interest - if I am not happy with how my IP is representing me is there anyone I can go to for legal advice on changing?
I have had dealings with this company and it wasn't a very pleasant experience! I am still waiting for a £2500 refund since April this year!! They were going to write off my credit card debt saying it was unenforceable debt! I cancelled with them but they still owe me the fee I paid upfront. I have since reported Beneficial Claims to the Ministry of Justice to get the money back. I believe they are now called "We fight any Claim". I was passed onto them through YES Loans and I was also put through to Money Worries. They are all part of the same firm,and they made my money problems a lot worse!. Good luck with them. I hope you sort it out.x
Thanks Natalie
Dont know if they are the same as Beneficial claims but wouldnt be surprised at all.
I have still not found the original loan agreement BUT have checked and the overinflated amount was claimed and stated on the creditors meeting report and was part of the sum agreed. Very confused now as it was accepted by my IP and the creditor also accepted the level of my IVA 41p per £ as a 31% owner of my debt. Surely then they are stuck with it??
If they voted and sent in proof of debt at the original creditors meeting then your IP should be extremely suspicious of such a large change. Can you ask your IP what they have done to investigate the new claim, and ask them why it's increased?
Unfortunately it's very difficult to change IP once the IVA has started unless that IP acts illegally. If there is genuine cause for complaint you should first complain to the IP, and then to the IP's professional body if you can't get a decent answer.
Get your IP to provide you with a reconciled statement of account with this company, compared to the figure that was used for the statement of affairs, and ask them what audit tests were carried out on the information you provided them with at the outset of the IVA.
