Unexplained increase in debt owing 18 months into IVA? I had mentioned before on this forum that i was surprised to see that the debt owing had suddenly increased 18 months into the IVA - i only noticed when i asked how much i would need to pay to finish the IVA early and some of the amounts owing to creditors had increased from the proposal but also from the 1st annual review. I questioned this at the time and was told that it takes time to confirm the actual amount owing - i wasn't happy about the explanation and asked for a complaint to be responded to by my IP but of course he never responded but instead i was fobbed off by the case worker. I have been doing some digging since and i have found paperwork from 2 of these creditors that shows the amount i owe them has increased as they had been continuing to add interest and late payment fees after the date the IVA was approved. I have only looked into 2 of my creditors but have already found over 500 pounds worth of interest and fees being charged after the 31st of January 2012 when my IVA was approved. I thought that as soon as an IVA was approved that all interest and late payment charges were stopped as they had agreed to an IVA - is this correct or are they still entitled to claim this additional interest?
I am concerned that my IP has not checked this after i questioned why the amount i owed had suddenly changed.
Any advice you can give me would be greatly appreciated.
Thank you!
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
Hi Urbanfox these should have stopped the minute your IVA was accepted. Go back to your IP to have this properly investigated and if necessary follow the internal complaints procedure to ensure you get a proper response but hopefully that will not be necessary. Are you with a company that posts on here as they may be able to help you more directly.
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Thank you Tina, I really appreciate your fast response. I don't believe that there are any representatives from Kingsgate who post on the forum. I have been losing trust in this company from the start which is what prompted me to do some of my own investigating - by the time i finish my IVA (earlier than expected) i will have paid the entire debt owing plus 100% of the fees but at the moment i don't really feel that they deserve the fees (almost 17,000). I will attempt to contact my IP but as yet i have not ever received any communication from him but i hope this time otherwise, i will look into their internal complaints procedure. Thank you again, i appreciate your help.
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
Some of my creditors have continued to add interest but this is nothing to worry about - the creditors are bound to the figure agreed when the IVA was taken out. If however your iva failed then they would apply for the full amount owed.
Last edited by winter_blues on Mon Oct 21, 2013 7:35 pm, edited 1 time in total.
I just found another reason for the unexplained increase - on my creditors list they had put one of the creditors down twice which added another 1000 onto the amount that i am owing - that one at least should be easy to fix but a little worrying that they are in charge of my finances and can make so many mistakes!
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
I am sure that Andy Davie and the guys at Vincent Bond work closely with Kingsgate, so if Andy is looking in to the forum he may be able to escalate your complaint upwards.
It is completely incorrect for your creditors to be allowed to charge interest once an IVA has been accepted, and it is the duty of the IP to agree all claims - usually within 4 months of an IVA being accepted.
