Full and Final Settlement

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SweetPea

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Post by SweetPea » Thu Aug 05, 2021 12:35 pm
Hi everyone! :D

I'm looking for abit of advice if possible.

I started my IVA June 2018 with Aperture, just over half way through and I never had a issue...up until recently.
My iva has been 'bought' by another IVA company.
I have never missed any payments, my reviews were all sent in on time etc
This years income and expenditure review came back to with a 'surplus' to which they upped my monthly payments, which I cannot afford. I rang customer service 3 times on 3 separate occasions to speak about it and each time I was given different information.
When I started my IVA I was at the job that I'm currently at. I left for a few months and came back, on less hours. I was still able to make the payments as the job I went to was the same hours and same rate of pay. When I returned to the original job, I went back on less hours (19 less per month) But I had quit smoking so I was able to still afford the monthly payments, as I was no longer spending money on cigarettes.
The 'surplus' that they picked up on, which again would of been there when I started my IVA, is because I get paid 4 weekly and not monthly, so I get paid 13 times a year (twice in 1 month) and this company that has taken over my IVA, has came the the conclusion that I take home £1200 a month when I don't. I'm lucky if I take average £1080 a month home, Which is stated on my income and expenditure on MY end, but on THEIR end they have me down at earning £1200 per month.
Because of that 13th pay, they've upped my monthly payments from £75 to £126, which I cannot afford BECAUSE I DONT GET PAID £1200 that they think I do, with their workings out.
EG.
£1065 + £1091 + £1108 = £3264 / 3 = £1088 x 13 = £14144 / 12 = £1178

So 3 months payslips I sent in, added together then divided by 3 to get my average per month, times 13 because I get paid 13 times a year, to then divide that by 12 for the 12 months in a year, they came to the conclusion that I take home £1178.

That 13th does not get averaged out over the other 12months, and because I don't have a set pay day (my pay day is different every month) That month I have two pays, I have 2x the amount of bills out (Car, insurance, rent) but when I've explained that to customer service, it literally fell on deaf ears, they were not helpful at all.
With them being on the assumption that I take home £1200 when I don't, they have now upped my total amount payable back from £5478 to £6600.

So far I have paid back £2975
I have it work out that I've paid 37 months (38 on their end for some reason) at £75 which equals to £2775 (37 months) or £2850 (38 months)
plus the first increased payment (5/8/21) of £126 (which i've had to lend £50 off my mother to cover the increase.)

My mother has said that she will gift me the remaining balance to offer as a full and final settlement, as I cannot afford the upped payments and I'm going to end up back to square 1 again after I've worked so hard for the last 2.5 years.

She has offered to gift me £2600 which would be slightly more paid back (£100 extra) on the original total amount payable (£5478)
So I would end up paying back £5578 in the end.

How likely would that be to be accepted? as that would be the remaining balance paid off in full, which means that my creditors would be able to get their money quicker.

Has anyone else had their Full and Final Settlement, rejected/accepted?

If they reject it, it is a one time offer? Or would I be able to do another Full and Final Settlement Offer in the future? I'm just nervous and anxious that if they reject it, I'm going to have to lend money off my parents which I am going to have to pay back, once my IVA is completed in June 2023 when I should be out of debt.

If they accept it, what are the next stages? What should I expect.
As this company has not been helpful in the slightly, the reviews I've read online are making me nervous and anxious, saying their completion is taking 6-8months, not issuing competition certificates etc I honestly feel like I'm in the dark, and because I'm not exactly clued up on the whole legal stuff etc, I feel that they'll say or do whatever they want, and I wouldn't have a clue whether or not its correct.

Thank you for your time and I appreciate that someone has actually read my long and winded topic. So thank you. :D
and Thank you in advance for anyone who is able to help in any way shape or form. <3

kallis3

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Post by kallis3 » Thu Aug 05, 2021 12:53 pm
Hi,

I am assuming you have been transferred to Creditix? They are not known for good customer service and also charge higher fees than most providers. If you go for a full and final then they will probably add £300 to the figure.

Your offer may be a good one but you have to make sure that they know it is only available for a full and final and will be withdrawn if not accepted.

Are you a homeowner at all? If so there is the question of equity release to be addressed as well.

CF may get you to try and your offer but it is YOUR offer and they have to put it forward.

If it is accepted then I'm afraid you could wait up to six months for completion but you would not be making any payments once 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

SweetPea

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Location: Newcastle

Post by SweetPea » Thu Aug 05, 2021 1:02 pm
Hi

No not Creditix, I'm now with Jarvis which rebranded and changed its name to Debt movement.

I have my Offer of a Full and Final Settlement letter ready, (I used the template letter) which states "This offer is made on the clear understanding that, if accepted, all the debts would be settled in full and I would be released from any liability. "

No I'm not a homeowner, I had to move back in with my parents (My ex is the reason for the debt and IVA but it was in my name) So I currently pay my parents board/rent to live there, which was discussed and agreed when I started my IVA with aperture.

So if my offer is accepted, my monthly payments would stop? Is that correct? and once its accepted, can they go back and change their minds?

Thank you for replying :D

Foggy

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Post by Foggy » Thu Aug 05, 2021 1:04 pm
Aperture passed their caseload to Jarvis, who rebranded to Debt Movement UK --- so not CF in this case.

I would write this down and email it direct to your named supervisor -- in the complaint ask for details of their regulatory body, so that you can escalate the complaint if needs be ( although you will complain via the Government Gateway, it makes them aware that you might get the regulatory body involved ). If the RB finds against them they can be issued with substantial fines -- it focuses their attention.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

SweetPea

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Post by SweetPea » Thu Aug 05, 2021 1:08 pm
That's the thing though.

I have been given No contact information regarding my new IP.
I know her name...That's it
No contact email, no contact number etc

My last IP from aperture, I had a letter from my IP with his contact information on, so if I ever need to discuss anything, I was able to contact him directly.

With this new company, I have no way of contacting her directing, only by post so it seems.

kallis3

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Post by kallis3 » Thu Aug 05, 2021 1:23 pm
Apologies - sounded so much like CF!
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

Foggy

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Post by Foggy » Thu Aug 05, 2021 1:57 pm
Mrs Laura Jayne Prescott
Company
Debt Movement UK Ltd
Address
3rd Floor, Marsland House, Sale, Cheshire, M33 3AQ
Telephone
0161 850 2177
Fax
IP Number
15010
Licensing Body
IPA
Email
Laura.prescott@debtmovement.co.uk
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

stupotty65

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Joined: Mon Aug 23, 2021 4:11 pm

Post by stupotty65 » Mon Jan 10, 2022 3:58 pm
i Foggy, Kallis et Al,
Greetings to you all for 2022 and thanks to you for advice given to me in 2021.
I now have a rather pressing issue with this company.
Having received my closure certificate and confirmation of my account being closed out successfully & this has also been now ratified by the courts also, I am now in a rather convoluted situation with them.
In my previous request for advice it was on the sale of my mother's property, which I was also a signatory on the outstanding mortgage due to my mum's dementia status.
Briefly, the house was sold and contracts were exchanged after my account case was closed out and my certificate issued. This was approximately one month after the closure In early November.
Therefore as advice given to me at the time, I wasn't then liable under the windfall clause to pay anything to them following the sale of the house.
At the end of the sale, my solicitor paid 50% of the proceeds into my mum's bank, however she is refusing to pay the remaining 50% of the monies to myself due to an undertaking she made with the IVA company some 4 months prior to the actual final sale of the property, to pay monies to them for the sale of the property, which at the time was envisaged to be taking place during the time after my final payment was made in March 2021 and the issue of my closure certificate. In actual fact, as I have already intimated, the final sale took place a month after my account was closed out.
My solicitor is unwilling to pay monies owing to me because legally if Debt Movement Ltd then come after her for monies under the agreement that was made prior to the close of my account, then she would be held personally liable to repay the monies and not myself. So I do understand her position and place no blame with her. She is only being cautious.
She has requested that she be released from the undertaking twice now and has filled the proper form requests to them by fax in December. She has followed up with numerous calls to chase them but has had no luck as yet. I have emailed customer services on 3 occasions, made calls twice and now escalated my case to the complaints department because we haven't received any responses from them about the release of responsibility. I have emailed my complaint twice now in the last two weeks to their complaint department and received no response whatsoever, not even an acknowledgement of my complaint being received. I find this totally bizarre and inadequate for a financial institution such as this.
I suppose I'm just really asking for any advice that you can give or perhaps any alternative contact numbers for them because when i now try calling their "existing client" telephone number, I am put on hold due to a "high number of calls. Last week I was on hold for 3 hours and have up in the end. Today, I've been on hold for just short of 2 hours and no answer, so I predict that sadly I will have the same result and hang up out of frustration because of the RIDICULOUSLY long waiting time.
I await your help if you are able.
Thank you so very much in kind anticipation once more and hope that I've given you the most accurate details that I'm able.
Cheers
Stu :D

Foggy

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Post by Foggy » Mon Jan 10, 2022 6:53 pm
Email your IP directly asking for a substantive response within 14 days after which time you will escalate the complaint, via the Government Gateway, to their regulatory body.

I take it that you were acting as a trustee and that you do not actually ( even on paper) own any of your mother's property and that the balance of the sale monies is all hers and none payable to you for your own use. If that is the case your IP need not have been involved anyway. However, if you are actually on the deeds as joint tenant or tenant in common, in law you own a proportion of the property and this would have been what the IP was interested in.

The IP might argue that, because the sale was underway before the issue of the completion paperwork, the IVA has a call on your share of the proceeds. You might be better served to speak to a solicitor for qualified advice, but, if the IP is after any of the money it could boil down to when contracts were exchanged as, until this happens, there is no sale in law.

As you can see, it is not black and white and, without the full facts, opinion can vary.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Foggy

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Post by Foggy » Mon Jan 10, 2022 7:04 pm
Reading back through previous posts. You were issued with the certificate and you even sought confirmation that the completion was effective and the house proceeds were not in question. This confirmation was forthcoming. So you went ahead with the sale on that basis. If it turns out the DM issued the certificate (twice) in error that is their problem, not yours and you could be in a position to sue them for any losses if they insist the monies are paid to them.
You need to speak to a solicitor versed in insolvency law and contract law. I suspect the solicitor dealing with the house sale is a conveyancer, so would not be able to assist.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

stupotty65

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Joined: Mon Aug 23, 2021 4:11 pm

Post by stupotty65 » Tue Jan 11, 2022 2:17 am
Thanks once again Foggy!
You really do help to put my agitated mind at rest.
You are correct in your second post as to the detail of my case.
I have emailed Debt Movement directly on 3 occasions to their customer care email and now 2 occasions to their complaints department. I am waiting for the 14 days to elapse from my last request for contact to be made.
To date I have not received any responses to any of my emails. Not even an automated acknowledgement.
I will update you as soon as I gain a response or escalate my case to the Financial Ombudsman.
Thanks once again
Stu :D
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