Will I default my IVA if I withhold overtime payments,
Barclays bank said my wife had been misold PPI and they sent a cheque payment to DFD and also reduced her debt with them by £1700.00,
I have calculated we have now overpaid into our joint IVA a total of £15477.00 with another 14 months still to go.
Tomorrow my monthly direct debt will increase this overpayment to £16268.00 but I will also owe DFD a £1300.00 overtime payment for August thus if paid taking my overpayment to £17568.00
I have been in touch with DFD and they say they are looking into it but in the mean time I am paying a lot of money I think I don’t owe to anyone.
What do the experts think I should do?
hi ginger, our original debt in sept 09 was £59837.00 DFD fees are £10000.00
Barclays reduced one of our loans from £28000 to £11000 giving the sum owed of £52650.18.
Tomorrow when my direct debit is due I will have paid £65449.59 in monthly standing orders and overtime payments plus Barclays have sent a cheque for £3438.85 direct to DFD making a grand total paid to them of £68888.44.
Thats over 16k more than our original debt and this month I should pay a further £1300 in overtime payments to DFD for this month.
I sent a number of emails to DFD and they say they are looking into this but the ammount of overpayments is still growing.
When is an IVA finished ? do I need permission from my IP to stop payments?
Your IVA finishes depending on the terms of your IVA - when an agreed time frame is reached or when the total balance owing plus agreed fees is paid, whichever comes sooner. You should get permission from your IP to stop payments so that you are not risk of failing your IVA but with the amount paid in I do not see that happening however it is for DFD and yourself to agree timescales. Judith, Matt and Evette from DFD post on here so hopefully one of them will pick up your post and reply to you.
Well done on getting so close to the end and being able to repay as much as you have been able to. Keep us posted how you get on.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Hi Tina. Thank You for your kind words and prompt reply, I have in my IVA a clause called “Substantial compliance” that states “The Supervisor may, if he/she thinks fit, issue a completion certificate even if you have not complied with all your obligations under the arrangement, provided that you have:
(i) Made all payments required by you under the arrangement
(ii) Fully explained any breach of the arrangement, as required by the supervisor
(iii) Paid the supervisor any sum requested to compensate creditors for reduction in dividend caused by the breach.
I think under these circumstances even if my IP fails my IVA for non payment of overtime monies DFD have enough funds paid in by me to cover all of the debt plus fees.
I do hope someone from DFD pick up on this thread as I have contacted them on a number of occasions and still I’m waiting for it to be sorted,
Guess their sands of time run a lot slower than others.
