Gutted that I am paying back more than I owe. Anything I can do ?

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by TP69 » Mon Dec 04, 2017 4:41 pm
I started my IVA four years ago with one year left to go .
Due to my circumstances changing in this time I am now earning a good wage and paying back 100p in the pound.
My original debt was £15,300.
I have had a letter today from my debt management company saying , that to date I have paid £13,596
and I have £6,538 to pay ?!!!.

This will bring the total I finally pay to a whopping £20,134.
I understand there are fees to pay , but is the amount they will finally take legal.
It seems they are making money on my circumstances improving and the more I earn the more they take (15% of a higher monthly payment)
This seems so wrong when all someone in debt wants to do is get it clear and move on, where's the incentive to improve your circumstances, get a better job and pay back more.
From January I am paying £630 per month so should have it paid by October (before the 5 years) but gutted in total I would have paid £20,134
Anything I can do ?
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by Foggy » Mon Dec 04, 2017 4:48 pm
Yes, it is legal that you end up paying more than the original debt, as you rightly say, you are also paying the fees. I imagine the £20k you end up paying back will still be less than had you paid all the debt and the original contractual interest on it. At the end of the day you signed the agreement detailing these fees so have no come back.

Looking at the figures you quote it would seem that you have got off lightly -- they do not appear to have charged statutory interest, which many firms can, and will, do. This would have added a further £6,000 to the bill !
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Lisa Thomas
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by Lisa Thomas » Wed Dec 06, 2017 9:33 am
When you say you are paying back 100p/£ is this just because your remaining contributions will take you to that figure or did your terms stipulate a minimum of 100p/£ would be paid?

How much are your contributions? I presume you have c12 months of payments left or is there a property to take into consideration for a potential extension?
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