www.iva.co.uk

can a creditor refuse to accept a monthly payment plan.

Yes. Are talking about within an IVA or a DMP?

it was before i got the iva i wrote to them to ask them to take a monthly payment as i had difficulty paying and they refused

Hi Kathleen

Can you give a bit more information about the issue you are having. If you are in an IVA, you should not be paying your creditors directly anymore but rather all payments should go to your IP.

I think Kathleen is bankrupt now. She has made a lot of posts lately which lead us to believe this is the case.

Hi
My understanding is that a creditor can't refuse a payment if it is sent to them via an informal plan
Regards

My experience was that a single creditor would refuse reduced payments if other creditors were not also asked to take a cut. From reading other posts this is quite a complicated case and will possibly require legal involvement. Also the op appears to be bankrupt but believes herself to be in an iva. To the op - have you had a chance to review your paperwork or speak to the court/ receiver to clarify your position?

I have often seen creditors refusing to accept payments, so would be interested to hear where your information is coming from Andy. Is there anything in the Debt Management Guidance which covers this?

My understanding is that it is a principle of law that creditors cannot refuse to accept payment made in reduction of a debt, whether from the debtor personally or from an authorised third party. They are quite within their rights to refuse an offer of payment, but that is a different matter. In a DMP it is very common for creditors to refuse an offer whilst accepting the payments, which usually then leads to the debt being passed to a debt collector.

OFT debt collection guidelines also provide for a DCA not to indulge in unfair practices, which include refusing to deal with authorised third parties. These guidelines can be viewed on the OFT site.

Hope this helps.

Regards.

I DID REPLY TO COMPANY TO ASK THEM COULD I PAY A MONTHLY PAYMENT AND THEY REFUSED THE NEXT I HEARD WAS TO APPEAR IN COURT FOR A DEBT OF £8.000 DEBT 4.000 WHICH WAS DISPUTED I APPEARED IN COURT ON DEC 17TH AND THEY MADE ME BANKRUPT COSTS WAS 20.000 AND THEY HAVE TOOK MY HOME. THIS IS LLOYDS TSB BANK I AM A 66YRS OLD PENSIONER AND I THINK I HAVE A MISCARRIAGE OF JUSTICE TO ADD MONEY WORRIES OF WALES TOOK 500 POUNDS AND DIDNT DO ANYTTHING FOR ME REGRARDS KATHLEEN

Hi
We need to be clear that a creditor can refuse an OFFER of payment, i.e a reduction as in a DMP but still have to accept any payment and offset it against the debt.
They are still within their rights to take legal action.
Kathleen can you give further details of your situation ?
Regards

So if a DMP company sends a cheque to a creditor, and they send it back refusing the payment, this is illegal?

Hi
Not sure if that happens too often Mel. Will have to look into it further.
Regards