Compensation for negligence

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Post by kate731 » Thu Jul 23, 2020 5:08 am
What compensation is fair for this level of negligence?
A creditor was listed in my IVA without their knowledge.
I entered into my IVA in 2018 and 4 creditors were included. My finances improved and I paid it off in full in 2019 and only recently discovered that one of the creditors listed in my IVA were never actually included and were NEVER informed of my arrangement. They never received the documents from the company I used and I technically defaulted on 10 monthly payments before they sold the debt to a collection company.
I have since discovered that the IVA Company I used had been sending my documents to an email address that is not directly related to my Creditor, never sent them by post so obviously never received correspondence in return.
My creditor refuses to take any responsibility (fair) as they never received any documents and followed their procedures.

I informed the IVA company 2 months into my IVA that I was still being contacted by a creditor and they assured me I had nothing to worry about.

I am seeking compensation from the IVA company I used. I can’t find any similar cases in which this has happened and I’m not sure where I stand.

Thank you!


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Post by SteveUK » Thu Jul 23, 2020 6:05 am
Compensation for what? Had they been included you would have paid more to settle the IVA so you haven't lost anything.


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Post by kate731 » Thu Jul 23, 2020 6:30 am
They were included and I paid the settlement of which included a dividend payment to that specific creditor.

Essentially the creditor breached the terms of my IVA however it turns out that they were never informed of it.


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Post by Foggy » Thu Jul 23, 2020 9:40 am
In the first instance you need to make a formal, written, complaint to the IP and give them a chance to investigate and get back to you. If that produces no useful result you then need to escalate the complaint to their regulatory body, via the Government Gateway here: ... actitioner

If the regulatory body finds the IP at fault they will issue a reprimand and, maybe, a fine ( which can sometimes be quite substantial, so most IPs are keen for complaints to not get this far).

As far as compensation goes, you can only claim this if you can evidence a loss or suffering. On the face of it, you paid what was agreed under the terms of the arrangement. Any monetary loss would have been suffered by the creditor and it is between them and your IP to dispute.
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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