Please help! I had a debt management plan with StepChange and was then convinced by a debt company in August 2018 (Swift Debt Help) that an IVA would be best for me. I was never, ever told there were charges involved in it. I was rushed into agreeing to going with them and even when I told the guy that I was at a restaurant with my family so wasn’t able to read the document he was telling me to sign (I still have the emails saying I wasn’t able to read the document/terms). That company then changed over to Aperture and they recently changed to Jarvis Insolvency. It’s only just now come to light that the document shows charges of £2655 fees. I am disputing these charges as although I’ve signed the document, I wasn’t able to read it first. Can anybody please advise me who to turn to for this? I’ve called both IVA companies and neither will help. Not disputing I still owe money but I’m disputing there’s almost 3k of fees that’s been added on without me being aware! Thanks so much!
Fees of this magnitude are not uncommon in an IVA and, not reading what you signed notwithstanding, they will have been detailed in the proposal and also in the Report of the Creditors Meeting following acceptance. In reality they do not affect you as you agreed to make 60 monthly payments and, at the end of that time, any remaining debt would be written off. For you this would be the same whether there were fees or not --- it is the creditors (who also agreed the fees) who are, technically, taking the hit. As far as I am aware there is very little, if anything, you can do about this other than applying to court to have the IVA anulled, if the court agree. This, however, would mean you owe your creditors again and will allow them to chase you once more, after adding back lost interest and charges.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy, much appreciated! My debts were only £7440 so I wouldn’t have agreed to £2655 as fees! Now they’re saying my outstanding amount is £4900 but does that mean the £2655 is included in that amount? Quite happy to pay the balance but really frustrated that there’s charges on top of a debt where I thought I was getting help without any fees. If I could get help to get the charges removed it’d be a massive help!
Are you trying to pay the IVA off early ? If so there are two main ways to do this: Either a settlement, which usually means you pay the balance of the debt, fees and possible statutory interest. Or a Full and Final Offer, in which you pay the remaining agreed monthly payments in one lump ( this is the most common method).
If you asked for a figure, they will usually quote the settlement amount, as this is fixed, but they don't usually quote for a F&F as this is an offer for you to decide, not them.
When did the IVA start ? How long was it for ? How much are your monthly payments ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It started in September 2018 and it’s £124 a month. It’s affordable but I’ve just had a change of circumstances whereas my landlord has decided to sell the house I rent off him. I’ve been trying to arrange viewings on places but as soon as I say I’ve got an IVA I’m not being allowed to proceed! My family have said they’d help me out so wanted me to get a settlement figure (Jarvis Insolvency said it’s £4900 that I still owe) but I was looking for a way where I didn’t have to pay the £2655 charges that were added! I’m rubbish at all this!!
So .. assuming it was a standard 60 month arrangement, you have around 32 months left at £124. So they are expecting a further £3968 from you.
You said your debts were £7440 ? This is exactly your IVA payments -- rather unusual to work out like that. Did you mean that figure of £7440 were the agreed payments, or actually the original debt to creditors ?
Anyway --- I don't see a way around the fees .... you could offer a full and final of £3000 or £3500 and hope creditors accept that.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I’ve had no statements at all to know exactly where I’m up to as it’s been passed from Swift Debt Help to Aperture IVA and now to Jarvis Insolvency. It was £7682 when it started in September 2018. I’ve requested statements and to ask how my money is being allocated but I’m still waiting! All they’ve said is I’m to continue paying £124 a month until it’s clear? It just doesn’t seem right!
To be blunt, you were no better off with the IVA than you were with Stepchange (and, with Stepchange, the creditors would have got more paid back). However, from your point of view, you will have paid over roughly the same amount.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy, you really do know your stuff! If I cancelled the IVA would those fees still remain on there if I was to then change to a DMP or a DRO? It’s the fees I’m bothered about. Or shall I just see about making a Full and final offer like you suggested last night? You’ve been great, it’s really appreciated!!
You will have to let your IVA fail by missing three payments. You won't have to pay any fees. You may find your debt is higher though as lost interest and charges may be added. If you have more than £50 a month DI after normal bills are paid you won't be eligible for a DRO. You can make a full and final offer and it would all be over and done with if accepted.
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
Hi Kallis3, I won’t be able to get a DRO then. I was definitely Mis-sold an IVA as was told it’d wipe off nearly all the debt but was never told of charges. £2655 for supervisor fees/admin seems so expensive to be added to a debt that wasn’t even that high!
As you are well into your IVA now it might not be a good idea to let it fail .... as Kallis says, creditors will add back lost interest and possibly charges and the debt will increase. More importantly creditors might not agree to a DMP and enforce collection.
At least as things are now, in an IVA, everything is agreed and laid out and ou know that all you need do is continue paying and everything will clear up in 32 months time. If you failed the IVA and if the creditors all agreed to a DMP, you will be paying for much longer now .... your debt hasn't decreased as those fees are all you will have paid so far.
If you want to close early then a F&F offer would, in my opinion, be the way to do it, if you have a friend or family member who could let you have the lump sum. Other than that, sit it out for the next 23 months. I know you find the fees annoying, but you have to think of yourself and what is best for you as well ---- the creditors are the ones losing out, but they know this and they agreed to it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Foggy, thanks again for your advice. I’ve spent today (in-between working) on trying to get an outstanding balance or answers but I’m getting nowhere and just getting passed about. Once I can actually speak to somebody I will get it sorted and just have to accept the charges! A full and final offer seems to be the answer but I’ve zero faith in Jarvis Insolvency. They don’t return calls or emails and don’t give the correct information. Feel like my head is going to explode!!!
