Arrears on my IVA

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Lucy Betts

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Post by Lucy Betts » Thu Nov 25, 2021 3:49 pm
I have been contacted today by my IVA administrator and told that I owe over £2000 in arrears on my IVA.
I make my monthly payments every month and speak to my IVA provider most months and yet this is the first that they have told me about any arrears on my account. They have advised that my payments should have gone up in Oct 2020 but as they had not increased I have accrued these arrears. They have said that my monthly payments need to almost double to clear these arrears and that it was all laid out in my original IVA Agreement that my payments would increase at this time.
No-one from my IVA provider contacted me in Oct 2020 to tell me to increase my payments and I couldn't even if I wanted to as I do not have sufficient income. Surely someone should have told me back in Oct 2020 not allowed the arrears to accumulate to over £2000? Apparently it is all due to an error with their systems that has only just come to light.
What can I do, I cannot afford to double my payments each month?


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Post by Foggy » Thu Nov 25, 2021 4:31 pm
First you need to see if you agree that this increase should have happened. From the wording of your post this was a foreseeable increase mentioned in your proposal ( Car HP stopped or something like that ). Yes, they should have reminded you, but, at the end of the day it is your IVA and your responsibility to carry out the agreed terms.

As they have admitted some culpability I would have thought they would be more helpful in recovering the arrears. Maybe they could extend the term of the IVA by enough extra payments to cover the money owed, rather than expecting it to be paid by the end of the original term.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by SteveUK » Fri Nov 26, 2021 2:07 pm
Seems to me they are admitting that your IVA payments weren't right anyway. If they say you can afford to pay double they are saying you could have afforded to pay twice as much anyway. One way or another they are in the wrong.
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