Dear IVA Experts
I am just about to finish off paying my IVA. I have 5 months left. I have gone through all annual reviews with no problems and, in fact, have had no problems with my IVA until now apart from it being an almost impossible struggle to meet the repayments sometimes.
However I have just received a letter from Payplan saying that I signed my agreement requiring that my creditors receive a minimum dividend of 27p in the pound (which payplan calculated as 60 monthly payments of £265 which I have been paying all along). The letter says that as it currently stands my creditors will receive only 25.57 p in the pound and therefore my IVA is not on track to meet my requirements and therefore my repayments will go up to £404.00 for the last five months. I have gone through an annual review which proves I only have £265 excess income. Can payplan do this? Your advice would be gratefully received.
I think you need to speak with them and ask them for clarification as to where things have gone wrong. Have they had higher claims made by your creditors if so why weren't you informed of this at your last review ?? Equally check their fees have not been increased etc - - at the end of the day you cna only pay what surplus you have each month - they are not going to want you to fail your IVA with 5 months left - if you have to pay it why can't they allow you to pay an additional four months to cover it !
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Have you checked what is stated on your original Chairman's Report?
Mine from Payplan had a statement on part 2) v) stating that "should liabilities exceed the estimated figure listed in the proposal resulting in a reduction of the estimated dividend outcome by more than 0.05 pence in the pound, this shall constitute a breach of the arrangement etc..."
My original dividend was to be 0.29 pence in the pound and according to the above statement as long as it finished at no less than 0.24 pence in the pound it wasn't a problem.
Mine completed at 0.27 pence & I wasn't asked for any extra, which in any case I would have queried because of the above in my report.
If you don't have the above statement, I wonder how Payplan are expecting you to pay £404 a month when you only have a surplus of £265?
Payplan should at least let you continue at the £265 for 5 months & then make a few extra payments after that.
payplan should have seen this comeing ages ago.
its down to them to manage your account and keep tabs on everything about it.
tell them to dip into there charges and make up the difference.
any ip worth there salt would be checking these things out at the last reveiw.
my forcast is to pay 21p in the £ but with an increase at my meeting at the beginning it will bring in 25p in the £
i would play b***** hell with them if they came to me at this late stage and up the anti.
ps i am with payplan so am interested in the outcdome
cc received 6th January 2014 now upwards and onwards
hi astrid first off all,the dividend in a iva is based on your disposable income from the outset,plus any equity release that may be included if you are a homeowner.if in your case you have paid the exact payments in your iva agreement ,then in my opinion the dividend was calculated wrong by payplan in the first place and the creditors hav,nt picked up on it at the creditors meeting.so i would tell payplan to either accept the original payments or call a variation meeting and that the mis calculations are investigated.either way you should not suffer for somebody else's incompetance.
Last edited by MRBLUESKY on Tue Aug 17, 2010 10:06 pm, edited 1 time in total.
Thank you so much for all your helpful comments - I really appreciate them and just confirm my original response of what the hell? - how can they do that. I will follow up on all of your suggestions and let you know the outcome.
Best wishes to you all.
Here is the latest from this saga. In 2005 an extra £2,500 was added to my debt. According to Payplan this was because my creditors had added interest to my debts. This includes a £701 debt using an account number that is not mine, and I had already informed Payplan was not mine.
Okay so I should have noticed when this extra money appeared on my debt on my first year statement (the first notice I had of this), but I trusted that Payplan were supervising my account correctly and I had no idea that this would mean I did not meet the required dividend.
Payplan have offered that I add another five months to my IVA!
I have gone to the CAB but they were more than useless.
I have now asked Payplan to send me details of the £701 debt in an unknown account number and asked them when, as stated in my agreement, a meeting was held with my creditors to ask them what they wanted to do when it was noticed that my agreement dividend was not being met. I have had no reply to my email.
Does anyone know where I can get help with this? I am not just going to roll over and add another 5 months to my IVA when I think this is mismanagement. I feel that a solicitor is the only option but obviously, thanks to Payplan, don't have money for such "luxuries".
Any advice gratefully received.
Our review reports gave a return estimation, from memory they said something like 'the current level of return is in line with a dividend of 42p'. Wasnt this exact wording but something along these lines so we always knew what the return would be.
Have you checked your previous reports? If this additional amount was in the 1st year PayPlan should surely have notified you of this in their reviews and I agree to notify you this late in the day is not good. I would scrutinise your statements as ours had one debt on twice, one (Barclaycard I think) that had been sold on to max recovery during the time taken to set up the IVA and given a different account number, that said it wasnt claimed twice, the original debt was always shown as unverified on our statements and then removed when finalised.
Hopefully this may be the same for you that it is a debt that was sold on and appears twice. They should send you a statement that shows the amounts you stated and the amount actually claimed.
Hope this makes sense, but check all your statements and annual reports carefully.
Interest cannot be added on to a debt after the IVA is agreed. Payplan know this full well and are being very stupid given that many potential customers will read these forums and be put off by what they see. See where they go with the account that isnt yours and let us know whats happening.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Warning to anyone thinking of using Payplan - don't!
I have put a complaint in about the way they have managed my account as described above but they are getting VERY NASTY - texting me at 8 am on a Sunday morning and sending very nasty, unpleasant, threatening letters. I am going to a solicitor to try and sort this out but no one needs this on top of the stress of an IVA. So avoid payplan like the plague or, if you are with them, make absolutely sure as soon as possible that your are on track to meet your dividend.
i didnt think they worked weekends?
what do these letters say exactly
did you make a complaint through there internal department and what did they say was there stance.
the account that is not yours is a non starter for them to pursue so what are they now saying there position is on this.
as said before no creditor can add anything after the iva has started so i cant see it being that thats a problem.
im with payplan and have never had to report them as such for anything but i am keeping on top of things anyway.
let us know what they are saying and one of the ips on here might be able to throw some light on it
cc received 6th January 2014 now upwards and onwards