Coping not very well

[Ferg777]

Hi there, how am I coping, terrible to be honest. Heres the deal (and Im sure nothing you havn't heard before). We took out the iva because we were struggling to pay c card, loan and a store card. On top of that mortgage and all the usual stuff. Got into debt a few years ago after I lost my job and didnt earn enough to keep the kids etc going. (my fault I know) So, the iva promised to lower our payments and help us out of debt, at least thats what we were told. How naive of me. A few months into the iva i lost my job again, apparently covid related. So im in a temp job like the wife and my wages fluctuate. Our monthly payment has risen from 185 to 214 since the last review. I earned some extra money over september and october and now they want 320 extra from me. As i dont have it because i sorted out some stuff in the house i am now getting into more debt. I have spoken to the iva folks and after many roundabouts the same answer appears - pay the momey cause we dont really give a monkeys about you. So hoping the experiences on this site will help me because right now im not sleeping and very agitated all day every day and i cant seem to speak to anyone who actually understands whats going on.

Ferg777

[Foggy]

Hi Ferg. Sorry to hear you are having issues. The extra income is, in part, payable to the IVA, and will need to be paid. Can you tell me what the agreed monthly income is (basic pay) and what each months overtime amount you took home was?

[Ferg777]

Thanks for your reply.
My monthly allowance is £1850 per month which includes a ten percent allowance for extra earnings. I can earn anything from £1300 - £2080 depending on what im told to work. If I have to pay slightly more over payment I believe I can handle it. My issue whith them this month is that it was a five friday month and therefore through no fault of my own an extra weeks wages. Now as it is my weeks wages I still need to set aside my mortgage money etc. However when I asked for this to be brought into consideration on this months earnings they (twice) have said nope, you have earned x amount extra and you owe us £235. I find this crazy. With overtime the problem is Im in a temporay job and its frowned upon if you say no to it.

[Ferg777]

Thanks for your reply.
My monthly allowance is £1850 per month which includes a ten percent allowance for extra earnings. I can earn anything from £1300 - £2080 depending on what im told to work. If I have to pay slightly more over payment I believe I can handle it. My issue whith them this month is that it was a five friday month and therefore through no fault of my own an extra weeks wages. Now as it is my weeks wages I still need to set aside my mortgage money etc. However when I asked for this to be brought into consideration on this months earnings they (twice) have said nope, you have earned x amount extra and you owe us £235. I find this crazy. With overtime the problem is Im in a temporay job and its frowned upon if you say no to it.

The £320 in my first post is September and October overspill added together

[Foggy]

The issues here seem to be the way your IP has calculated your variable income. However, I think I can see where they are coming from with the 5 week month --- this would not normally mean a 5 week mortgage repayment, as that would be calculated on a 12 month average and be the same each month regardless of whether it was a 4 or a 5 week month.

With the variance in your wages from £1300 to £2080, they appear to have calculated the £1850 on a 12 month average as well, with your basic coming in at around £1665.

So, having averaged everything out with 12 monthly incomes and outgoings, they would look at the bare figures, regardless of the length of the month. So, each month anything over £1850 is split 50/50 with the IVA.

I would be inclined to contact your IP directly, making a formal complaint, as whoever you are speaking to seems to have no interest in even explaining the figures to you ---- a new I&E ought to be calculated and explained to you.

[Ferg777]

The issues here seem to be the way your IP has calculated your variable income. However, I think I can see where they are coming from with the 5 week month --- this would not normally mean a 5 week mortgage repayment, as that would be calculated on a 12 month average and be the same each month regardless of whether it was a 4 or a 5 week month.

With the variance in your wages from £1300 to £2080, they appear to have calculated the £1850 on a 12 month average as well, with your basic coming in at around £1665.

So, having averaged everything out with 12 monthly incomes and outgoings, they would look at the bare figures, regardless of the length of the month. So, each month anything over £1850 is split 50/50 with the IVA.

I would be inclined to contact your IP directly, making a formal complaint, as whoever you are speaking to seems to have no interest in even explaining the figures to you ---- a new I&E ought to be calculated and explained to you.

Ok I will do that and see

[luluj]

Great advice by foggy (as always) ... its important you get this resolved so you know exactly where you stand before the next 5 week month. Let us know how you get on.

[Ferg777]

Hi again, so an email explaining things to the IP didn't help, nor did a phone call. I asked about a five week pay but no deal as allowance is worked out on an average. I asked for another review but no. I did say I'm trying to do the right thing here and keep honest but I believe my response was equal to a nodding dog on a car windscreen so the status quo remains and keep on going.

[Foggy]

Contact your IP directly, making a formal complaint, as whoever you are speaking to seems to still have no interest in even explaining the figures to you. Complain by email and also by registered post, keeping copies. If the IP is of no help, you can escalate the complaint to their regulatory body.

Even if the IP is in the right, or believes he is, he should, at the least, explain his reasoning to you.

The RB will not intervene directly, but could, if they agree with your complaint, fine the IP and, sometimes, this possibility makes the IP think twice.