The correct information was originally given yestrday however was picked up incorrectly which lead to a mis-understanding that we were not authorising a client to obtain necessary credit to replace their car.
Michelle.29 - Thank you for taking the time to talk with me yesterday afternoon and best of luck with the car search.
need to smile today? go on check out my blogs - I'll add to them regularly
Our IVA's over YIPPEE unbelievable!Seems like yesterday it was approved despite everything
I believe some posters have been able to get credit for a car during an IVA with the IP's permission. Moneybarn and Carloans4u are great for those with a less than satisfactory credit rating.
We got ours through carloans4u, but had completed our IVA and was in possession of our completion certificate, my credit file was also clear of defaults and IVA. Received our certificate at the end of August and had a new(er) car by the end of October.
Michelle, just out of interest, you say that you've paid £1.30 in the £1 to Grant Thornton in respect of your debts over the last 5 years. How did that happen ?
As Karol said this was a mis-understanding on my part, however it wasn't explained very well when I rung! Once Karol rung me I fully understood! Should have just got in touch with Karol in the first place. Would have saved a lot of panic and tears on my part!
And yes this is including fees! Didn't explain that very well in the original post did I!
I have paid nearly 10k over the originally stated debt at the start of the IVA.
Michelle, I don't understand how you've ended up paying a third more than you originally owed as a result of going into an IVA. Could you post a rough breakdown of the figures ?
When I started the IVA I was with Blair Endersby, my debt was 25k.
Over the 4 years I was with Blair Endersby before I was transfer to GT they continually increased my monthly payments which resulted in me paying nearly 36k over the 5 years.
This is clearly an extreme example of what can happen in an IVA - and presumably your IP was entitled to charge fees at the level they have been - which do seem high compared to current average fees. I wonder how much interest you would have paid on the debts had you not entered into the IVA and merely continued to repay your creditors to the best of your ability over the last five years?
I often think of that Melanie, maybe I would have paid less however if I would have paid less then this would upset me so I think I am best not knowing!
The thing that upsets me about all of this - is at the start I was unaware I could pay more then the original debt! That part was never explained to me!
Front-loading of fees would, I'm sure, have contributed to this outcome and I think it's a bit much to expect the customer to work out all possible scenarios for themselves at the outset. That really is the responsibility of those advising on the product. All elements of an IVA and how they might combine to produce different outcomes should have been explained before any commitment was made by the customer.
Can you please explain what your undertstanding of front loaded fees is. You keep mentioning it on the forum, and I want to be clear exactly what you mean - perhaps from your own experience.
My clients are fully explained about the process, together with the likelihood of increaesed payments along the way and the possibility of a full repayment with costs on top from the outset. I fail to see how this is hard to comprehend, especially when annual reports show progress at each anniversary, and the creditor claims are static.
Why do you feel that "front loaded" fees have affected the outcome in this particular case?
