have we done the right thing!

[asht]

We entered into an IVA with DFD, they have informed us that we are not allowed to see payments sent to our creditors or see balances. They have not informed us of any reductions in our total debt. The IVA is over 6 years and we then have to remortgage to pay the remaining funds which will pay the full amount owed. We will be unable to do this as we need to set up an ISA to cover the mortgage or arrange a repayment mortgage.

Our IVA was set up in Feb and after reading the forums we see that people have sent bank statements etc for the annual review. The bank we changed to have never sent us a statement yet as we use online banking. How many bank statements do they need? What exactly do you have to send at the end of year review?


We have also just been informed that they dont send monthly payments to our creditors but pay dividends at each 5k interval. Is this right? The more I learn about this IVA the more I ask myself if we have done the right thing!

[chris.g]

I'm not an expert and don't know much about IVA's so I can't really answer your questions. However, if I was paying into an IVA I would definately want to know that my creditors are being paid and how much....I think it's quite condescending that they have said that they will not tell you.
xx

[mazalamar]

I have my IVA with DFD (I presume you mean Debt Free Direct). They've been pretty good. I didn't realise you could do an IVA over 6 years - I thought they HAD to be 5 years. Mine is over 5 years.

I also do an annual review which is submitted to my creditors and I get a copy of it.

Are you sure you've done an IVA and not just a payment arrangement?

[TheMatrix]

IP's have a obligation to report at least every 12 months and they need to see different things to show income and expenditure. What they need for the annual review will differ from IP to IP.

At the first review I did not see a copy of the Annual report to creditors, but got one on the 2nd review which shows how much has been paid to creditors as well as a breakdown on costs incurred, and yes my IP is holding back on a substantial sum that has not been paid yet and payments appear to be made as interim dividends.

To clarify though I'm not with DFD, perhaps someone who is could clarify their requirements at annual review.

[Lisa2009]

We also were with DFD. We recieved a statement from them every year.
Payslips, tax credit awards and any increased insurances and such like had to be sent off every year.

You will find that you WILL recieve statements but as yet its a little bit soon into your IVA to have recieved one.

[ashingtoon]

I have my IVA with DFD (I presume you mean Debt Free Direct). They've been pretty good. I didn't realise you could do an IVA over 6 years - I thought they HAD to be 5 years. Mine is over 5 years.

I also do an annual review which is submitted to my creditors and I get a copy of it.

Are you sure you've done an IVA and not just a payment arrangement?

Thank you for your reply. Yes we thought it was jsu 5 years but they said one of our creditors insisted it go on for 6 years otherwise they wouldnt do it?? So we agreed. Can you tell me what you have to do for the annual review so I can start collecting now, I was unaware of this until joining here. What do you neeed to send for each review? cheers

[MelanieGiles]

What rot that you cannot see a statement of how much your creditors are being paid! They should be sending you annual reports of their progress, and if they are not you should ring them up and ask for copies. And dividends are rarely paid on a monthly basis in IVAs - so I think that they are correct in the way that they are paying your creditors.

[chris.g]

As far as I know IVA's can be for any length of time, 5 years has been the 'norm' that the industry has settled on. I think it depends on what the creditors agree and vote on.
xx

[ashingtoon]

What rot that you cannot see a statement of how much your creditors are being paid! They should be sending you annual reports of their progress, and if they are not you should ring them up and ask for copies. And dividends are rarely paid on a monthly basis in IVAs - so I think that they are correct in the way that they are paying your creditors.

Thank you. I think ive been dealing with telephone advisors and have been unable to speak directly with my IP. Looking on here I can see its best to speak to them direct. I am going to write to him as I have a couple of additional queries. Thanks again

[Martin2011]

Hi there,

It seems diferent companies/IP's take diferent approaches. We're with CS, they review annually an send a dividend to creditors annually - and a statement of distribution to us.... at least our IP does.... seems to work so far, fingers crossed!!

Good luck getting it sorted, and don't doubt your judgement, IVA's are a good thing, just variously managed!

Martin

[ashingtoon]

What do you have to send for your annual review? Do you have to send all your payslips or is your annual P60 enough. Do you have to send all bank statements as we dont get these currently from our bank. When it was set up they asked for three payslips and last three bank statements they havenet really told us what we should keep. We have set up a spreadsheet for our monthly outgoings and update it accordingly.

[MelanieGiles]

I ask for the last three payslips and last year's P60 - but some IPs like to see bank statements as well, so you are better off asking your own IP what their actual policy is.

[TheMatrix]

I've been asked to supply the last 3 wage slips, my latest P60 and a updated Income & Expenditure breakdown on 2 annual reviews now.

I don't get bank statements, as I use online banking, but another IP may well want to see them, I think what I'm saying is it depends on what your IP wants in order to produce the annual report.

[MelanieGiles]

Yes - I also ask for a full written income and expenditure summary as well.

[OPTIMIST12]

I am sure that the original poster is worrying unnecessarily. I think it is accepted practise that IVA Providers send out an ANNUAL report only - I have never read of any who send out monthly statements to their clients. If your IVA was set up in February then you should receive your first annual report in - or after - February 2009.

I too am with Debt Free Direct and they have been excellent throughout. I have only had one annual review so far - I was required to send in my last 3 payslips, most recent P60, and a new I + E summary.

I received a copy of the annual report to Creditors shortly after the first anniversary. This set things out clearly and concisely -

-Payments Made (Voluntary Monthly Payments, Overtime / Bonus Payments, Bank Interest Credited)

- Fees Charged (Nominees Fee, Supervisors Annual Fee, Disbursements, VAT)

- Total Distributions (Payments) sent to Creditors

-Balance Remaining In The IVA Bank Account.

Like others have said - if you use online banking it is quite probable that you wont receive statements through the post (saves paperwork and postage etc). Just print your own copies frrom your banks website and store them as normal - just in case you need to send them in.