www.iva.co.uk

My partner and I were recently advised to stop making payments to creditors as an IVA is going to be put together. I havent made payments for a while now but my partner didn't stop 3 direct debits for her loans as she does not have an overdraft facility on her bank account thus thinking no payments would be made if there were no funds in the account.

She has received a letter this morning saying 'you asked us to make payments for you on the 28th May. We wanted to let you know that there was not enough money to cover them. We have provided you with an unplanned overdraft to cover the payments we made. For this reason we will be charging you a daily fee of 20 pounds.' Balance 309 overdrawn.

Really don't know what to do??? She had withdrawn what she could last week to put in our new Co-op cashminder account.

Would be grateful for a little advice.

Thanks

I have never had that happen to me before. Usually they just bounce the DD's.

I suggest that she cancels the debits now and I would get in touch with your IP and tell them what has happened as this overdraft will probably have to be included in your iva.

Hi Mark

I agree with Kallis in that your partner should cancel all the directs debits with immediate effect. And let your IP know so that they can contact the bank to prevent a huge overdraft stacking up.

Debbie

You need to inform your IP of this, all direct debits should have been cancelled but it is too late now. If you have not done so already stop those DD payments and cut all those cards up.

Also, when the phone calls start do not be bullied into making any 'token payments' either

That's right. As soon as your first payments are missed, your creditors will phone. Some are not bad, but others are bullies and will try to intimidate you.

No matter how much they upset you, do not give them any payments. Be polite and tell them you are going for an IVA. If you have caller display, you could try ignoring the calls and just deal with them by letter.

And if you can get a phone number display box

http://www.filesaveas.com/cli.html

Do not answer the phone to any numbers you do not recognize

usually if the loans are within the same bank as account this is why they carry on paying them as they will not cancel the DD if you have not given them an alternative account, i would write to bank and explain that you are putting forward for an iva, everything will be taken into account with your ip. good luck if they are not with that bank cancel them immediatly and say as you didn't ask for the overdraft could they cancel that aswell.
kerri

I always fear that if I ignore the calls, then they will try to track me down at work. When I start to get the calls, I will answer them and just refer them to my IP. Hopefully that will suffice. Kazzy x

Hey Mak, I had a loan with TSB and I banked with them too. I didn't cancel the direct debit with them as I knew, from reading the posts on this site, that they wouldn't let me. They took the loan out, it took the account overdrawn and they are charging me. I told my IP and she is including it in the IVA. Viki X

I had a loan with Natwest and they wouldn't let me cancel the DD. Each time it bounced I was charged and these fees were included in my IVA and subsequent BR.

Hi Guys, if its any consolation, we have a loan with Lloyds and I cancelled the DD online, they didn't get the choice. We will wait to see what happens to it when they call for the next payment, as that will be the first since cancelling the DD. All I have received, is a letter telling me that I had cancelled it (as if I didn't know!!) Kazzy x

I did the same and cancelled my dd online when they refused to do it on the phone.

The only creditor that tracked me down at work was MBNA. Trouble is they knew I was going into a IVA, I sent them all a standard letter giving them authority to discuss the accounts with my IP.

You can only explain it so many times to them on the phone, but when they don't stop calling and taking no for a answer you just give up in the end and stop answering their calls.