www.iva.co.uk

Was my IVA mis-sold to me?

Why would you think it was ?

Good morning,
I am writing as I am currently having dispute with my insolvency company about my IVA.
My dissatisfaction with the company and the ways they work and trick people into signing an IVA started almost immediately after contract was signed, but as I had a lot going on in my personal life at that time and was highly stressed I kept leaving it until now.
It all escalated recently, after my second annual income and expenditure review, after which my monthly contributions have increased from £217 to £317. Whilst looking into the matter I contacted couple of debt advise agencies who both mentioned that IVA was not the best option for me and that other options would have probably been more suitable for me.
I looked into my contract and realized that they disregarded a debt management plan as not suitable for me based on the proposed amount of £85 pounds per month, saying it would have taken me 111 months to repay my debt (and that is written in my original contact with CreditFix), however, my monthly contributions were never just £85 per month, they were set at £217 a month, however, my term for possible debt management plan wasn’t recalculated (which would have then taken me just 48 months and not 111 as they claimed to pay the debt in full) and that wasn’t even mentioned to me. I also very strongly believe that such handling of the cases is done intentionally, that this is one of their disgraceful tactics to trick people into signing the agreement.
What’s more – they talk about the amount of £85 per month giving an impression of that this is how much customers would be paying each month towards their IVAs, only very unexpectedly raising it to (in my case) £217 and pressuring to either sign it or leave it there and then, without even giving a chance to think about it.
Has anyone else experienced something similar and do you think I might have been mis-sold my IVA? Thank you for your answers

My dissatisfaction with the company and the ways they work and trick people into signing an IVA started almost immediately after contract was signed, but as I had a lot going on in my personal life at that time and was highly stressed I kept leaving it until now.

It all escalated recently, after my second annual income and expenditure review, after which my monthly contributions have increased from £217 to £317. Whilst looking into the matter I contacted couple of debt advise agencies who both mentioned that IVA was not the best option for me and that other options would have probably been more suitable for me.

I looked into my contract and realised that they disregarded a debt management plan as not suitable for me based on the proposed amount of £85 pounds per month, saying it would have taken me 111 months to repay my debt (and that is written in my original contact with CreditFix), however, my monthly contributions were never just £85 per month, they were set at £217 a month, however, my term for possible debt management plan wasn’t recalculated (which would have then taken me just under 50 months and not 111 as they claimed to pay the debt in full) and that wasn’t even mentioned to me. I also very strongly believe that such handling of the cases is done intentionally, that this is one of their disgraceful tactics to trick people into signing the agreement.

What’s more – they talk about the amount of £85 per month giving an impression of that this is how much customers would be paying each month towards their IVAs, only very unexpectedly raising it to (in my case) £217 and pressuring to either sign it or leave it there and then, without even giving a chance to think about it, and this is, I believe, yet another tactic used by CreditFix, and I wonder if they are even training their staff to follow them?

During annual reviews they also try to pressure people into gaining access to their bank accounts asking them to send sign in details so they can sign in themselves, which I cannot understand how they can legally be allowed to do that.

While I don’t think that stopping and withdrawing from an IVA would be in my best interests (as I have already been paying £217 a month for the past two years and, in the case of cancelling my IVA, would loose both – money paid in and 2 years spent towards paying my debt off) I would like to try and see if something can be done to try and change the ways they work, if not for me, then for people who will fall into their loopholes in the future?

I have also filed an official complaint against them and CreditFix seemed alarmed about it – yesterday one of their senior advisers spent almost 40 minutes on the phone with me, trying to convince me to withdraw claim about mis-sold IVA.

Would like to hear your opinions and perhaps to get an advise about this whole situation and whether it would be at all possible to get somewhere with this case?

Have a read here: creditfix-judgement-t89131

I cannot comment on mis-selling, not being party to all that was said at the outset. But, I agree that the DMP / IVA comparison was flawed and mis-handled, shall we say.

Potential increases are a part and parcel of IVA's and are mnentioned in the terms which you signed, although I am sure CF, along with some other firms, paint over this particular crack in order to gain business.

Third party access to bank accounts is a relatively new thing and is allowed by law -- that said I would never allow a third party that sort of access.

Thank you for your reply.

Yesterday, during the phone call with CreditFix a senior member adviser even promised to sort all of the future problems and queries himself - without even needing to ever contact their customer service team - that is, if I withdraw my complaint.

I was trying not to get pushed into withdrawing my complaint immediately and am thinking of that should be my next step (and this is what I am struggling to come up with!), what else can I do to achieve something? What would happen if I would not withdraw my complaint? Would anyone else look into it? Is there anyone else I can complain to?
Would like to try and legally sue them, but that would come at a great cost which I cannot afford.

Any ideas would be appreciated.

And while I did mention increase in payment, I do understand that there is little I can do about it - will just have to go along with it, but I am sure that if I knew what I know now, I wouldn't have chosen IVA in the first place!
It seems that DMP would have suited me better, but because it was dismissed as not being suitable for me by CreditFix (based on the wrong amount in calculations of monthly repayments) I am now stuck with an IVA and cancelling it now (after making payments for 2 years) would not be in my best interest too

We are, as debtors, really over a barrel in an IVA ! There is no mechanism for mediation or redress for us. All we really have, apart from the courts ( and the expense) is the IP's regulatory body -- who will, if they find in our favour, give the IP a slap on the wrists and, maybe, a fine ( sometimes eye wateringly large) --- but we get no recompense or resolution from the process. I have, twice, raised petitions on the subject but had very little support each time. Those in an IVA do not wish to rock the boat, those outside of the system are simply not interested (though, one day, they may find themselves joining our ranks !! ).

If you do not withdraw the complaint, or they do not come up with a satisfactory solution, you can pass the matter to their regulatory body here: https://www.gov.uk/complain-about-insol ... actitioner.

I would only withdraw once they have satisfactorily addressed each part of your complaint. Remember, though, that they can only act within the insolvency rules and the terms in the IVA. The first thing I would want to know is how they arrived at the £85 payment they used in their advice -- and why they arrived at £217 at the creditors meeting -- somone, somewhere in their team was no good at maths ! Depending on the outcome of this a review might be required.

I would also get them to agree, in writing, that 3rd party access to your bank account is not required or authorised by you and they will ask for and accept hard copy statements and payslips, just like the majority of the industry.

I do not believe you are the only one.

Creditfix are the company and your IVA is supervised by the supervisor, however when you went into the IVA the nominee (which is normally the same person as the supervisor) had a duty of care under the insolvency code of ethics to make sure you understood the IVA. The nominee also has to comply with Sip 3 regulations and make sure you are aware of all options and you have been given best advice.

You would of signed various documents, some being court documents to say that the nominee has gone through all this and you understand everything. Did you sign these ? you did you sign on your phone !!

The nominee has also written to the court to agree with your proposal and confirm he/she has agreed this is the best solution for you.

There is lots more but if any of the above you are unsure about and you are correct that a DMP could of been better for you then it is highly likely you may have been Mis Sold.

Take a look at solicitors below who have mis sold IVAs on their website.

*Link deleted - advertising not allowed'*

Good luck.

It’s funny you raise this. I feel the same. You feel so desperate when you first start in the Iva. My payments have gone from £199 a month to £473 a month. I know I owe the money I should pay it back but ivas are advertised as wipe off up to 85% of your debt you are so desperate you sign anything and then too frightened to come out of it in case you are made bankrupt. So risky. Also amazing the fees the IP are allowed to take. Hopefully I’ve got less then one year left but then have to remortgage which is a joke as will just have to continue for another 12 months

The clue is ' up to 85%' Does not mean that will happen. I do agree that the fees, particularly those of CF, are high. Remortgages have been about for a long time. My IVA was in 2008 and we had to do the extra 12 months then.

Like all industries, there are good and bad out there and the IVA does have major flaws which get manipulated by the, shall we say, 'less than good' !

Yes, many are floundering when they enter an IVA and, let's face it, who examines a life belt when it is thrown to you as you drown !? But, having signed up, they are then virtually trapped and the IP has them over a barrel --- no access to mediation or recourse with complaints and errors --- only the industries own regulatory bodies, who cannot actually interfere but just levy fines on the offending IP. The consumer gets no protection or redress.

I think regulators are looking at things like redress (probably along similar lines to the FCA) but they're taking their time.

The better firms will already have a good complaints investigation procedure and will pay redress where appropriate.