Was there a minimum return pence in the pound clause in the original agreement from the creditors which you have to make up to due to this error from the creditor. With bankruptcy if you have a disposable income you could end up paying money to your creditors for another 3 years as opposed to one more year in the IVA. You need to know why you need to pay any more over it sounds like this could be as a result of a minimum pence in the pound return in your original paperwork I would check that first in your own copy and through your IP
Sorry in your initial paperwork it quotes two minimum 35 and 40p? In your new letter are they saying due to the extra claim from one of the creditors then your return is only 25p instead of the minimum 35 or 40p return?
I would phone your IP and say at the end of the day the creditor brought the wrong initial amount to the table you have honoured the agreed 60 payments at the amount agreed by the creditors at the original meeting. I would also point out that your IP having been notified of the error 1 year into the agreement would have had 4 years in order to make up the shortfall with a slight monthly increase in payments as opposed to surprising you with this at the end of the term. Discuss with them that you have had to rely on your parents to help you pay the monthly payments because you just wanted it done and dusted and this letter out the blue is not really acceptable as you are not in a financial situation to fund another 12 payments to make up this £5000. You will have to await for a professional to advise whether a creditor can add to their initital claim during an IVA because if they can then a lot of people could easily be caught out by this especially with minimum pence in the pound being included in so many IVA contracts.
If the £5k is interest added post IVA acceptance then it has to be taken off as interest and charges are frozen and the creditors are legally bound to comply with this. If the IVA fails only then can they backdate interest and charges to date of IVA acceptance.
Despite IP's posts on here stating these are very rare cases and that on the whole IVA's run smoothly with no hiccups etc. I personally argue that these situations do not appear to be very rare of late and that there are a lot of people suffering from so called "errors" that happen to appear just at the final review and then argued to pay another 12 months in lieu of payments etc. I am very skeptical about this and I implore anyone who gets any phone calls or letters demanding more money from the IP carefully go over any paperwork, demand evidence and fight your case to the bitter end. A lot of people enter IVA's to pay as much back to the creditors as possible not be shafted by them or their IVA company at last knockings.
If posts such as these continue to be raised it won't be long until someone does take their IVA to court and once that flood gate is opened then any other "logistical error" cases will be flooding to court after the precedent has been made and either the creditors or the IP could find themselves facing large fines, liquidation or worse dependent on how badly they have abused debtors under their supervision.
Hi. I would take three steps, failing an adequate explanation from your IP: First, ask the IP what their complaints procedure is and who are their regulators. 2) Go through the internal complaints procedure, and if no joy, onto the Regulators or Financial Ombudsman. 3) If no joy yet -- then threaten going to the Courts for a review of the case.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you complain to Licensing body who provide their license they will deal with the complaint but can't overrule a decision if you are clearly in the right and they are wrong the only people who can force them to change their stance is the courts.
Internal complaints yes definitely I have had situations resolved without having to go to court but when you google other people with disgruntlements it does say you can go to the regulator but don't expect them to be able to do anything about it. That is the important part that people don't think oh well if the regulator can't do anything I'm stuffed there is another level. Hopefully you do get it resolved before that stage
onthinks if I were you I'd speak to a solicitor. Yes they can be expensive but some offer a free intitial consultation. I think a solicitor would fancy their chances at getting a positive result in this case for two reasons; firstly your IVA was approved in a Court of Law and secondly you have complied fully with the IVA and thus the Courts request. I think it would prove interesting if as your IP has said that creditors can come forward even after 12 months to claim monies not previously claimed for. After all YOU supplied figures to your IP and THEY should of satisfied themselves via your creditors that the amount was correct.
The problem lies squarely on the shoulders of your IP and individual creditor....not yours and in any Court Case the matter will will be considered as to whether or not the creditors request is "REASONABLE" in the circumstances, which judging by your posts in my opinion it clearly is not.
Notwithstanding the aforementioned in ANY event your IP should of informed you of the creditors additional request for extra money when they became aware of it....not 4 years later.
Good Luck.
Last edited by Pennyless on Fri Feb 10, 2012 2:21 pm, edited 1 time in total.
I came into this world with nothing and still have most of it left!
