www.iva.co.uk

Hi all

I've worked out that I could claim nealry £3000 in bank charges from the last 6 years, but I'm wondering whether this is advisable considering that my bank (Lloyds TSB) is one of my creditors with an overdraft of approx. £4000.

I'm nearing my final decision to go into an IVA, and would like to know if claiming bank charges at the same time would complicate things unnecessarily (to the point of them closing down my accounts which would leave me with £1000 to find) or if I should go for it.

Thanks
Steve

Hi
I think you would be better sorting your IVA out first and then claimimg the bank charges back.Once in an IVA your refund,if any,will go into your IVA pot as a windfall payment.If you reclaim them before the IVA Lloyds will probably offset it against your overdraft and may be less receptive to an IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

Hi Steve and welcome to the forum

As your overdraft with your bank is unsecured, it will form part of your IVA. You can claim back your bank charges whilst you are in an IVA. If you are going to do this, and I suggest you do so quite quickly as there has just been a case brought to court against a bank and the judge ruled in favour of the bank, you need to be aware that if you do get them paid back this will be classed as a "windfall" and you will have to pay it straight into your IVA and it will not reduce the time in your IVA as your creditors will want a "minimum" return. What I am saying is you can either go through the stress of fighting the bank for the money and lose it all at the end of the day or you can sit back and do nothing because theoretically the bank is not going to get their full £4k back unless you win the lottery!!!!!! (Which you won't because I want to win it first!!!!!!!!)

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

Sorry Andy - took a long time to type that and you beat me to it!!!
Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

Agree with Andy and Sue on this one. If you feel that you are going to propose an IVA concentrate your efforts on this first.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Good advice by all, I think you should get your IVA under way first before you go into battle over fees.

Best of Luck

Best Regards. IVA Experts

steve.
with my limited experience, i would say, don't bother, as the experts say, concentrate on your iva.
i have a big downer on lloyds tsb, but, as i understand it,if your iva gets the nod and you claim back your bank charges it would have to be paid back to your creditors as a windfall, and, if your iva runs its full term of five years , you can only claim back the previous 6 years charges, therefore you would only receive 1 years bank charges.
someone will correct me shortly if i am wildly incorrect.

Aucto Splendore Resurgo.
(1 down, 59 to go)

Hi
I,m afraid that the whole six years worth of bank charges would go into your IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

andy.
if i went to the trouble of claiming back charges and paid it into the iva, do you think it shows good faith to my creditors, and would it work in my favour if i was able to offer a full and final at a later date?.

Aucto Splendore Resurgo.
(1 down, 59 to go)

I can't believe that it would for a minute! But it would definately give them more money.

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

hey ho.
probably wont bother then.
here's me thinking my creditors might have a heart or
a soul.
stupid boy pike !

Aucto Splendore Resurgo.
(1 down, 59 to go)