www.iva.co.uk

When we took out our IVA it was accepted on the condition that when a car finance agreement was finished we'd pay the remaining amount over as part of the IVA.

We accepted this (not much choice really!) and have just finished paying for the car credit.

Upon checking the agreements we found that the IVA was set to increase a month earlier than the car finance ended. I spoke to our IVA company to explain that a mistake had been made and we wouldn't be able to start paying the extra until a month later.

They replied stating that the missed month can be split across remaining payments. I emailed them again saying that this wasn't our mistake and in accordance with the initial agreement the creditors weren't entitled to any extra money until the car had been fully paid off.

They claim that we should have checked the agreement. All it states is x number of months at y amount followed by x number of months at increased amount, something we didn't sit and work forward, we took them on their agreement.

Do I have the right to insist they can't take this extra months payment? We could really do without increasing the payment even further than expected, we've already had to pay a final credit fee that wasn't allowed for (IVA company have split the over payments)

Appreciate any advice please

Hi. I can't realy comment on whether the "extra" payment is due or not as this will depend upon the wording of the proposal. The bottom line, however, error or not, is that you signed this document and are therefore bound by it.

Rather than increase monthly payments, putting an extra strain upon your resources, could the IP agree to take the outstandimg amount as an extra payment at the end of the IVA ?

Agree with Foggy.

Who is your IP? It maybe someone who posts on here who can help.

IP is PayPlan. Yes, I did sign the agreement but it is worded that the increase will happen after the car is fully paid off.

I would hope they would allow a one month extension at the end of your iva to support you through this !

They will extend or split but I don't feel that they should be taking this money as the mistake was certainly theirs. Yes, I could have worked the monthly forecast out by counting 48 months etc. into the plan but I think this oversight was totally acceptable as I was going by the fact that they said the payment would increase after the car was paid off. Why would they raise payments whilst another car payment was going to go through? Because THEY made a mistake

Have to admit that this does seem a little unfair. Even though the proposal was signed by you surely an amendment could be made x

PayPal have said that they onyl contact creditors during the annual chek and cannot amend anything.

With apologies to Payplan ... that is absolute rubbish!!

I asked them to make contact with creditors and explain that they had made a mistake

I may not be popular...but I agree with foggy... as we have already said in this thread you did have the opportunity to read and work through your proposal documents - had you have done so this would have come to light prior to agreement put in place and therefore could have been amended.

We are not talking thousands I presume ... and it is only a one month difference - personally I would be grateful for the IVA and the opportunity to clear my debts over a 5 year period albeit only paying a % back - I would not waste my energy on this and would look forward to life out of the IVA and what that means to you ... it will mean so much more to you and your family !

i agree with Luluj - I'd let this lie now and just concentrate on finishing your IVA and entering a debt free life.