Hopefully, the OP will get their money back. The lender is bound by the iva and cannot set off their debt any more than a high street lender can; and in the case of a mainstream lender a refund would be in order. At the very least, couldn't the money be reimbursed to the OP from the iva pot and the lender take a reduction at the next disbursement to compensate.
I only mention the offset because the terms of my own IVA say where any creditor in the IVA makes a refund for whatever reason then that refund will be used solely to reduce their 'own' debt. I am not an expert on IVA's but I just guessed this is probably a standard term hence the reason I said an Expert would advise on this point.
Just to be clear I agree entirely that this has been very unscrupulous and questionable behaviour by the lender. The OFT has announced this week an investigation in to this very sort of behaviour. I do not think and it is not my experience that the bank will want to bear this loss or the lender refund it just at the drop of a hat. Presumably ZMRST can speak to his IP to see if there is anything they can do to help in terms of his IVA payments but I cannot see that it is part of the IPs duties to get involved in this sort of thing.
I would still tell them about it - it could be that they can speak to the creditor and just advise them not to try and do it again.
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
They should not be taking money from a debit card unless you gave them what's known as a Continuous Payment Authority. If you made a one off payment to them, and a CPA was not authorised at the time they have acted inlawfully in taking another payment.
Yes I'd speak to your IP about this and insist the money is paid back. Cancelling your debit card on a continuous payment authority will not help, as I hear they can still take payment on the new card, even though you've not given them the details as its a CPA.
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
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
Irrespective of whether a CPA was signed, wouldn't the IVA invalidate this? Part of the creditor commitment is to not contact the debtor for payments following the commencement of the iva.
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
Thanks for all the replys,
Just a quick update that i spoke to the company this morning, and they tell me it was an admin error. They are willing to refund the money taken, although it takes up to 10 days. Which is one thing i never understand how money can be taken right away but refunds take so long. lookly my IVA payment is not due for a few weeks so i should be ok money wise.
SO hopefully the refund will come though and that should be the end of it. Although i will keep an eye on my account and will be speaking with my IP about this on monday.
Yes I never did quite understand why it can be taken straight away out of the bank but take extra long time to get refunded. That's a strange one.
Though some good news if they've agreed to refund. Hope you get this sorted before your IVA payment date, I'd have contacted my IP too about this "admin error".
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
That's excellent news!!! Glad you got a result there.
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
