I have been a viewer and on the odd occasion a poster on this forum for quite a few years. I, again are after some advice from an IP if possible?
The enquiry is quite lengthy so please bear with me.
Question number 1:
I took out an IVA 3 years ago paying £561 per month. I lost my job a couple of years ago and had a payment break of 1 month. After which I got myself a new job but paying less money (approx £200 a month less). At the time I informed my IP about this and they re-instated my direct debit but would not entertain a variation to compensate the lower wage. I thought ok, I will battle on ... Anyway, just recently due to a HP agreement being paid off my payments have now increased to £680. However, the HP was settled a couple of years ago to which I informed my IP via letter but it would appear they have chose to ignore it. Now, all of a sudden I am expected to make these extortionate payments. Just recently with today's financial climate I am struggling to make these payments so I rung my IP and explained the situation. She conducted a full I&E review and concluded that I should in fact be paying £500 per month and not £680. I said, great to which she said, she would have to issue a variation and put it to the creditors but would mean an extension of 1 year on my IVA. I was horrified by this and explained I did not want to be tied in for another year to which she replied "this is normal practice and there is nothing else I can do". My question - is this correct? Do all variations HAVE to extend the IVA by 1 year?
I have just this minute come off the phone to my IP to explain for the past 3 weeks I have been living off my parents and my bank account is in the red and I am incurring excessive bank charges. I asked the IP politely for a payment break to which she refused and asked me why I wanted one. I told her I already explained this last week and the person I spoke to agreed to give me a payment break but then the next day changed her mind. She refused to entertain this and actually did say "I can see from your notes that you did speak to us last week to explain your situation but there is nothing we can do".
Hang on a minute, I thought the IVA process was designed to make things more affordable? It seems my IVA company are widening the goal posts and expecting me to make payments I cannot. Is this normal practice and am I expecting too much from my IVA company?
Question number 2:
My parents have been in a IVA for approximately 4 months and have their own business but to help with the costs they have a 2nd job which was fully disclosed to their IP. Just this evening they have been told by the company who they have their second job with that they are no longer required and will be relieved of their positions at the end of March. The earnings from this job total approximately £7000 a year. My question is, will their IP issue a variation so early into the IVA? There was always a risk that this may happen and my parents did inform the IP of this. My parents earn £1600 combined a month and currently pay £733 into the IVA.
You certainly do not have to extend the term of your IVA to accomodate changes in circumstances, and it is not within the remit of the IP to make you do this. Creditors can - and that is their right - but you have to agree to this. I suggest a variation for you simply showing that you can no longer afford to pay payments at the current level, explaining the reasons for this.
Similarly in your parents case - the same rules should apply - and it does not matter how early this is done into an IVA.
my iva has only been running 6 months and we have contacted our company 3 times for extra allowances-each time being approved.
Was it your actual ip you spoke to or customer services-it may have well been the latter.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
Thanks ever so much for the reply, it is greatly appreciated. Whenever I call my IVA company (not sure if I am allowed to mention the name) I always ask to speak to my IP to which I get the response "I will put you through to your account manager". I am not sure if the account manager is the same as the IP - I suspect not.
Anyway, the "account manager" told me quite categorically that I could not have a variation without an extension of my IVA by one year and according to them is "normal practice". I went round and round on the phone and having explained my circumstances was told "there is nothing we can do if you will not agree to a 1 year extension".
Obviously, it looks like I am being fobbed off. Can anyone advise how I can escalate this and speak to someone in authority? I have obviously requested this on the phone but I keep getting told I cannot speak to anyone higher.
My IVA company is Blair Endersby and I find their customer service absolutely appalling. I work in a CS environment and would get the sack if I spoke to my customers in the same way they speak to me.
They are very hit and miss, sometimes when I ring through they are very sympathetic and understanding, the next time they are very abrupt and in some cases very sarcastic.
Hi! Hope you can make some progress by contacting the IP. Have a word about the staff too. Poor advice is just about forgivable as some of these people only know enough to be dangerous but a bad attitude isn't. Nor is refusing to let you speak to your IP.
Hope you can get some answers. Let us know how you get on.
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
