Can Default Charges still being applied?

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missyp

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Post by missyp » Mon Aug 16, 2010 7:42 pm
Hi everyone

Just wondered if anyone can clarify if catalogues can still keep applying charges to my account each month regardless of the fact that I have entered into an IVA?

My IVA was approved back in May yet each month both Littlewoods and Simply Yours write to me (along with sending out a statement) confirming that they are charging me default fees of £15 each month until the balance of my account has been cleared. This obviously is increasing the amount owed to them month by month.

Any clarification/advice on this issue is greatly appreciated.
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 7:50 pm
Hi Missy,

Were the catalogues included in the IVA? If so, they can't charge you default fees and nothing will be added to what went into the IVA.

Send the letters to your IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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missyp

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Post by missyp » Mon Aug 16, 2010 7:51 pm
Hi Kallis

Yes they are included in the IVA. Thats very interesting then. I will get onto my IP about this first thing in the morning.

Many thanks
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 7:56 pm
They can hopefully speak to the catalogue companies and tell them to leave you alone.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Gettingthere

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Post by Gettingthere » Mon Aug 16, 2010 10:27 pm
Have been wondering this myself, IVA accepted in April, just got a letter from good ol MBNA re default charges, and have had several from the old faithful Santander all with charges and defaults on them even though I have also had letters stating that they have been informed of the IVA and to continue with the agreement which has been reached (do any of these departments of the big banks talk to each other?) All of my creditors have been included in the IVA as well. I just send them off to my IP in the hope that this is the correct course of action.
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 10:50 pm
That's the correct thing to do. The companies can't add charges, they won't be paid those at all and the letters aren't worth the paper they are written on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

missyp

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Post by missyp » Tue Aug 17, 2010 8:10 am
HSBC still keep sending letters stating charges are being applied, makes me wonder if they are just trying it on.

The funniest thing is that they've written us telling us they are pleased to continue to offer us an overdraft but we have to pay a formal fee of £25. strange they can do this when all of our accounts are frozen!
 
 

kallis3

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Post by kallis3 » Tue Aug 17, 2010 8:25 am
They are trying it on, either that or the news just hasn't filtered from one department to another.

The charges won't be added and you will find that HSBC will probably sell the debt on and they will close the account. That's what they did with us.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

PELDER

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Post by PELDER » Tue Aug 17, 2010 11:06 am
I was bothered about the fact that one of my creditors was still applying monthly charges to that particular debt,(and still is!), but I was reassured after calling DFD and told that it was nothing to to worry about and I could disregard this, which tied in with an earlier e-mail I received from Declan with the same query - this is a snapshot of his reply:

"However, once you are in an IVA, your creditors will still update your credit rating with debt details, this is normal but it will not affect you adversely as once the IVA is in place, your credit rating is effectively frozen and once the term of the IVA completes then your credit rating will refresh 12 months after the date your IVA completed and it will not show any record of defaults / missed payments etc. So effectively this will not adversely effect you."
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