tried to contact them and have heard nothing back

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MelanieGiles

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Post by MelanieGiles » Tue Mar 06, 2007 10:48 pm
I suspect that the money they are given by creditors by way of "donation" is actually the fee they take out of your payments each month!

It is an interesting slant on the facts, and I am sure that these firms will be stopped from making such statements when the debt management industry gets its forthcoming shake up.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
 
 

freelili

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Post by freelili » Tue Mar 06, 2007 11:01 pm
Hi dcl

I am really sorry but I cannot make head or tail of the paperwork I have, it goes on a percentage from what I can work out. The consultation is definatley free, that is very clear. It works out the percentage of what you owe in relation to the total amount and pays that percentage, but the total I pay does not appear to tally with what each creditor gets. Its all really pretty and long but I am really sorry I cannot understand it. It looks like its 8 per cent in fee's but there are some companies that donate, no its just too complicated. My agreement details the expected IVA also and the fees there are too much for my brain to handle also.
Its totally individual, so it would cost your friend nothing to find out. I really cant see this amount of work coming for free,as Melanie says, but consultation, defo free.

Now HSBC are also my main croc, I began missing payments on my credit card and they phoned saying that I had x amount in the bank and I had to pay, they were really persistent. Then I tried to cancel the DD for the loan (by this time started the IVA process) they refused to cancel it, made me overdrawn, then charged me £30, then put the loan amount back into my account, then made a charge to my loan account, another £30. If your friend has a HSBC account, get him to change to another bank. The onslaught was horrendous, begining at 8 in the morning then every 20 mins until around 8.30 in the evening, they are rude, threatening and demanding. Can you see now why I was so impressed? My other crocs were no where near as bad.

Myvesta do a free DMP. Kerri who posts on this site is with them.



LILY

I asked God for a solution and have to live with his reply.
Last edited by freelili on Tue Mar 06, 2007 11:05 pm, edited 1 time in total.
LILY

http://freelili.blogs.iva.co.uk

I asked God for an answer, I have to live with his reply.
Exsisto an angelus quod planto quispiam sentio melior.
 
 

dcl

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Post by dcl » Wed Mar 07, 2007 12:24 pm
Melanie, I've just had another phonecall with my ip, although still not the actual ip just an admin person, and they have said they made a mistake and are now checking with accounts what the fees and expected dividend will be. I've calculated that I will be 4k short at the end of year 5, will they demand this is paid as a lump sum knowing full well that i won't be able to pay and force me in to BR or will the iva be extended by way of a variation that will cost me money and my creditors may say no to?
 
 

MelanieGiles

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Post by MelanieGiles » Wed Mar 07, 2007 1:00 pm
You need to discuss this with the IP directly an no-one else. Put a call in to him/her, and insist that you speak to them directly. This matter is important, and you need the answer from the horse's mouth.

Your IP will need to explain to you why his costs have increased so much from the original estimate. These days fees are generally based upon fixed pricing or a percentage of asset realisations, so he is likely to be somewhat sensitive to the issue. I would suggest that you would like him to limit his fees to those he originally estimated and see where that goes. Tell him that you will be seeking advice from the Financial Ombudsman if you do not get a satisfactory reply. And get him to confirm any agreement to you in writing.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
 
 

freelili

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Post by freelili » Wed Mar 07, 2007 1:17 pm
dcl
Hi, I just wanted to say, you keep saying about forced BR, this does not usually happen by the creditors, or IP's (although its mentioned) right Melanie? I was just conscious of your fear(perceived) of this scary B word. I am no expert but payplan wold look bad in BR and the OR would see that.
I am sure this is a major stress, seems unjust and I rally feel for you. IVA's are there to make life bearable whilst addressing debts, not to cause turnoil 3 years in, surely?

Good luck I really hope you have some peace of mind with this soon

LILY

I asked God for a solution and have to live with his reply.
Last edited by freelili on Wed Mar 07, 2007 1:28 pm, edited 1 time in total.
LILY

http://freelili.blogs.iva.co.uk

I asked God for an answer, I have to live with his reply.
Exsisto an angelus quod planto quispiam sentio melior.
 
 

scaredkez

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Post by scaredkez » Wed Mar 07, 2007 2:23 pm
i am with myvesta and they donot charge for the dmp everything i pay to them is apportioned to the creditors here is their statement.
Is it really true that Myvesta offers its debt management programme free of charge?
Yes it is. And unlike creditor funded organisations Myvesta does not accept any funding from creditors to manage this programme.



It is our opinion that accepting creditor funding to manage consumers debts in a debt management plan is problematic. Organisations that accept that type of funding from creditors are dangerously close to becoming collection agencies instead of independent consumer representatives since the funding is directly based on money collected from consumers.



Here is an example of how creditor funded organisations get paid for their debt management plans. The organisation and creditor come to a meeting of the minds about how much the creditor will pay the group to put together debt management plans and collect money from consumers. These days that amount is typically 10% of funds collected from consumers. So for every £120 collected from consumers the debt management company will keep 10% or £12. The creditor will then credit the consumer for paying the entire £120.



It is only natural and logical that creditors that organisations for debt management plans are looking for a percentage return from their investment so they tend to look at the collection performance of those organisations.



Myvesta rejects this form of funding and instead relies upon the goodness of the individual to give a completely voluntary donation, of any size or amount they feel is appropriate, to help offset our costs.



We make not suggestion or recommendation about the amount of a donation and leave that completely up to the individual consumer that we are assisting.



Clients can opt-out from providing any funding if they don’t feel they can afford to make a donation.


Please view my blog at: http://scaredkez.blogs.iva.co.uk/
Please view my blog at: http://scaredkez.blogs.iva.co.uk/
 
 

dcl

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Post by dcl » Thu Mar 08, 2007 9:32 am
Hi Melanie, thanks for all your advice. I asked to speak to my ip yesterday and within an hour I had a call from payplan to say no further fees would be taken from my arrangement and that as long as I make the payments as set out by my arrangement my creditors will get the 25p minimum dividend. I asked for written
confirmation and received this email this morning.

Further to your conversation with my colleague yesterday, i write to confirm the following:
As of 7th March 2007 we will no longer be taking fees from your arrangement, you are to maintain payments at the current level from now until the end of the arrangement and your creditors will get 25 pence in the pound.

I'm so relieved and can now definitely look forward to 23 months time when my arrangement finishes
 
 

neverending

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Post by neverending » Thu Mar 08, 2007 8:26 pm
Thats a fantastic result and well done to you and this forum
Regards
Andy Davie
 
 

dcl

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Post by dcl » Thu Mar 08, 2007 9:31 pm
Thanks Neverending

I'd like to say thanks to the forum too, I don't think I would have got this result without it.

I will try to use my experiences to help others too.
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