My wife and I are at the end of our second year of an IVA. I was reluctant to agree as I had always intended to pay my debts off in full when I could retire this month. I was very stretched but at that stage had never missed a payment and wasn't in arrears. I explained this but was encouraged to due to the security and the IVA prevented companies taking legal action. I couldn't afford this and despite many queries I was assured that I could simply draw my pension and pay my debt in full (my IVA paid the creditors just £1000 less than I owed in any event, £55000). I was told several times that I could simply pay a full and final payment to them meaning we were all square without paying anymore than I owed. They did tell me there may be an 8% interest charge which I accepted. I made it clear I wanted to pay all my debts but didn't want to be in a position where I would end up getting charged more than I owed and interest. They specifically told me they would not charge me for clearing my debt. I have come to settle up now as promised and they are being coy about the 15% disbursement charge on the final payment of some £41,000. I suspect they are going to charge me the £6,000 (15%). I am suspicious of them as they have charged me £300 for a referral to a PPI company which I refused to deal with as we were already registered with another one. I had notified them of this and that company had nothing returned regarding information etc they are now demanding proof of my dealings with them before they will 'consider' the issue. I am also unhappy as I asked several times about this final payment and was told there would be no further charges from the IVA. I am an honorable man and I wanted to do right. I have never not paid what I owe and always wanted to do right by my creditors. I appreciate that the IVA providers have to be paid but paying nearly £13000 in fees for a debt of £55,000 for 2 years seems excessive. I will have paid about £70,000 by the end of this.
I would think it sounds better to let the IVA run and keep your pension intact. This will save you a lot of money and leave you with more income in retirement. Your credit file has been severely damaged and it will not matter whether you pay in full or not as to how it is repaired.
Stew20 ..sounds to me you need some expert advice. Its clear you want to be free of your debts but I have to agree with Michael about trying to retain your pension and continue paying monthly etc. Your pension is now your lifetime income and using it in a lump su may in my opinion cause issue further down your retired life.
Have you got an equity clause in your iva at all ?
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Still waiting for a final figure from the IVA company. I am lucky as my pension covers the clearing of it without too much of a loss and I am still retaining a healthy monthly payment. I am just annoyed that despite several requests and guarantees from the original girl I spoke to I am looking at £6000 disbursement charges. The IVA was definitely the wrong option for me. Unfortunately I thought the company was there for my best interests. How wrong I was!
Your IP can reduce their fees if they wish and if you feel you were mislead you should ask for a reduction. Check any correspondence with the IP firm to back up what you have said and the IP may cut the fees rather than face a complaint.
Michael many thanks for your advice. Within three days of complaining their compliant department contacted me to explain they had listened to the telephone calls read the emails, apologised for their behaviour and offered me 100% payment with no further charges from them (saving me over £6000). I am still aggrieved that I ever got into this position in the first place but at least lucky enough that I have still got time and the ability to repair the damage, hopefully. Again many thanks for the advice.
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
