one of my creditors charging me 28pounds a month

[scr]

I have just found out one of my creditors NatWest bank have been charging me £28 a month as well as interest on my overdraft. How is this possible, they have been part of my CCCS IVA ever since it started in January 2005?

[Cybus]

Are you sure you are in an IVA ?
If you go to this website ... http://www.insolvency.gov.uk/eiir/ and enter your name details it will tell you.
I am not sure CCCS can provide IVA's, though they can recommend you to an Insolvency Practitioner.
If you are in an IVA, then NatWest can add interest and charges only up to the time your IVA was approved.
Your Supervisor will be aware of this - again their details, if you do not know them, will be on the link above. They wil only allow NatWest to prove their debt with interest and charges up to the date your arrangement was approved - January 2005.
You may wish to ask your Supervisor to confirm to NatWest that they are bound by your arrangement and its terms.



Tell it like it is.

[scr]

I am in fact part of a (DMP) Debt Management Plan which i understand is not legally binding. I have been very stupid not to monitor my NatWest bank account but a lack of statements hasnt helped. This started out as a -£100 overdraft back in July 2004, charges were added on and I owed about -£350 by the time my CCCS DMP was set up, I have paid out 100's of pounds since then through my DMP and I found out yesterday the balance is now -£510. This is ridiculous how I am ever expected to pay this off.

[Dominic]

you are not in an IVA then, ok it might be possible to start one

[MelanieGiles]

Why did CCCS recommened a Debt Management Programme to you, rather than an IVA?

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

[ivorquestion]

Why did CCCS recommened a Debt Management Programme to you, rather than an IVA?

I suppose it depends on how dire your circumstances are. An IVA is advised for debts of 15K and over (http://www.clearstart.org/debt-comparison-matrix.php).

The 'informality' of a DMP also makes it easier and cheaper to setup.
No need to submit documents to a court or to call creditors meetings. Debt charities such as CCCS are also willing to act on a no-fee basis. All the money goes to pay the creditors.
One benefit which may also appeal to some is that you don't appear on the Insolvency Register.

Against this, debtors have to bear in mind that creditors are free to change their minds at any time and demand higher payments. They could also refuse to agree to freezing interest and other charges (http://myvesta.org.uk/programmes/debt_m ... _plan.html).

[Adam Davies]

Hi
There is not much benefit of a DMP if the debt is going to increase after payments are made.You have highlighted the downside of a DMP over an IVA.All charges and interest stop once an IVA is approved,unlike a DMP.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp