I took an IVA out in May last year my debt was £26K. I had the chance of redundancy which I took 30th June this year. I asked for a full and final settlement I was given a figure of £39930.14, my final take home pay from the redundancy and salary was £36K I had given the company this figure. It took them 3 weeks to come back to me, I asked them to go back to my creditors and renegotiate. To cut a long stressfull 2 months short I have finally paid them a figure of £39781.77 because I drew my work pensions as a lump sum to tide me over until I could find work. I have approx £3k now left to see me through. The company have taken so long each time to reply to me that I was on the point of a breakdown when they told me that if the creditors refused a lower figure and I didn't find work and keep up the payments they could bankrupt me. I took the VR thinking it would clear the debt and leave me some money to find work. I am single and 60 years of age and have little chance of finding a permanent job and building up a pension again. I feel I have been misled by this IVA all the way. I have paid 14 payments of £324 + 2 ppis and part of a bonus into the scheme as well as the final figure. I can not get them to give me any breakdowns. Can I complain I think I have paid far too much for the original debt.
Do you know how much the PPI payments were? It looks as though you've paid full wack ie. Debt plus ip fees and stat interest. Did they actually go back to your creditors to renegotiate the final figure? It is within your rights to ask for a complete breakdown of the figures. I would write to them, send it recorded delivery, and ask for a breakdown within 14 days. Hopefully an expert will be on here soon to give you some good advice.
I think that you have actually been misled, that you should put in an immediate complaint and state that because of how serious the complaint is that you have lodge a complaint with the Insolvency Service at the same time with the intent that the IP should reimburse you for their poor decision.
Additionally I would formalise this more and state that you are making a subject access request and you want to see the documentation that shows that creditors were contacted that this is what they wanted.
You have NOT made a full and final offer - you have made a full settlement which is a different thing.
Even if you assume that you had equity in a property and added 12 months the maximum you would have paid as a full and final is just under £19k plus you had already made payments of £4536 plus had PPI paid as well.
What you have done is paid everything including statutory interest, IP fees etc.
The fact that you felt compelled to withdraw your pension as a lump sum on top of the redundancy money plus you have been left with so little at the end of this is worrying.
They should have left you with the equivalent of 6 months income.
There was never a risk of bankruptcy and whoever you were dealing with did not in any way represent your interests.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
If you have already paid the money, have you had your completion documents? There should be a full breakdown of payments in it, if nit, your IP should supply one.
Did they not tell you how they had calculated the amount when you asked what it would be?
lifenoteasy, I don't think the role of IPs is to represent your interests. At the end of the day, you owe the debt plus interest plus fees. It's unfortunate that the amount just left a small balance but that's not the creditors or IPs fault either.
I do think that it's unfortunate that you didn't have the forum support earlier. As it was VR, you could have made an offer in the region ofreremaining payments and said you'd only take it if creditors accepted that offer.
Hindsight is a wonderful, frustrating, thing though.
relieved33 - they are paid to represent both sides as you effectively ask them to be your representative when dealing with creditors.
Additionally their own professional association has been fining IP's for failing to adequately communicate or represent the person in the IVA.
I totally agree that money should be repaid where possible -- the fact that in this case they felt compelled to take their pension as a lump sum is worrying.
As IP's on this board have stated - creditors are not ogres.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Representing someone as an intermediary and representing someone's interests are different. The IP has a duty to ensure that you pay what you can to creditors too.
One would hope that as the poster is 60 and only 12 months into the iva that the issue of pension would have been discussed at the start as drawing it was a possibility.
It would be interesting to know which company this was and, as I said, I am sorry that he didn't find the forum earlier as on the surface,he does appear to have missed the opportunity to sucessfully make a lower offer.
Going into an IVA the companies are your best friends - coming out of an IVA a lot of them now just see you as a business opportunity.
I always try and see both sides but when push comes to shove I always take sides if needed.
In this case I am taking a side - there will be times when I take the side of an IP.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
This does seem very unfair and certainly could have been handled better. Unfortunately not all firms treat their clients the same way so ti would be interesting to know which firm you are with.
The way the original question has been phrased, I am pretty sure I know who the prime suspect is Michael. Would be interesting to have it confirmed officially by the OP though.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
The max you could pay would be the original 26k, statutory interest at 8% plus your IP fees
You need a breakdown, your IP may have taken 15% of the lump sum as a fee, close to 6k on top of a nominee fee and 15% of other payments made including the PPI refund. You may well have paid over 10k in IP fees
8% compound interest on a daily basis for 60 months assuming that no payments are made is £12785 (the internet is a wonderful thing and there are calculators for everything).
The gap in my knowledge is if the statutory interest is for the time they were in the IVA before they made the offer or if it is for the full term.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I think Andy is right then - the fees are what have pushed this up.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
It is simple interest and as the IVA was only taken out last year the total to repay would be only about £28k. Allowing for a nominee fee of £1620 [5x£324] and supervisors fees of 15% of total repayment I would have thought about £35k is the absolute maximum that would need to be repaid.The OP has paid over £41k plus PPI so this seems extortionate unless the debts were hugely understated in the original proposal.
I would certainly be looking for a receipts and payments account immediately and we can do this in seconds on every case. I am sure your IP could do the same if they wanted so ask for this or make a formal complaint.
