How to make a complaint about possible missold IVA

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susan826

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Post by susan826 » Tue Oct 27, 2020 1:12 pm
I have just found out that two years into my IVA, the main creditor is a secured debt. I went to them over council tax but of course had to add my credit cards to the IVA, which at the time I was on top of. So without that debt it would have been under £5000. I am looking into making a complaint as I took out this IVA because of that main creditor. Any advice greatly appreciated.

MrMole

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Post by MrMole » Tue Oct 27, 2020 1:15 pm
Have you discussed this with your IVA firm to try and agree on the best way forward?

Foggy

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Post by Foggy » Tue Oct 27, 2020 1:23 pm
There is very little recourse for a complaint as the insolvency industry is largely self-policed!

You need to make a formal complaint to your IP, which, if unresolved you can escalate to their regulatory body. The RB will, if they find in your favour, issue a slap on the wrist or, as they sometimes do, a financial penalty. Unfortunately they will not directly intervene, nor will you see any of the fine appearing in your account. Have a look here: https://www.gov.uk/government/publicati ... actitioner

Alternatively you could seek advice from a solicitor versed in insolvency law and take your provider to court. However, as you might guess, this could prove rather expensive !
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

susan826

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Post by susan826 » Tue Oct 27, 2020 1:57 pm
Thank you, that does sound not hopeful. Yes I have complained to my IVA company but its the third compaby in two years and they say the complaint needs to go back to the orgional company.

susan826

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Post by susan826 » Tue Oct 27, 2020 2:06 pm
Yes and asked them to email what I should do, they were a bit on the back foot and all over the place. Looks like I have to make a complaint. It is third company in two years, so seems not their problem, although sympathetic and said they will give me any advice I need but no action.

susan826

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Post by susan826 » Tue Oct 27, 2020 2:07 pm
Thank you for the link. I will try.

MrMole

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Post by MrMole » Tue Oct 27, 2020 3:51 pm
However inconvenient to you, it must be true that the third company to manage your IVA, can't be the ones responsible for any of misselling of if.

Foggy

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Post by Foggy » Tue Oct 27, 2020 4:30 pm
I agree with Mr Mole -- and it could be that they are no longer in existence.

Have you been servicing this secured debt in the meantime ?
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

lifenoteasy

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Post by lifenoteasy » Wed Oct 28, 2020 9:31 am
The new IVA company cannot be held responsible for it being missold BUT the new IP is likely to have the responsibility to make a decision about whether the IVA should continue.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.

susan826

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Post by susan826 » Wed Oct 28, 2020 1:41 pm
Thank you both
No I have only just found out it was secured, I am going to need to make a plan with them.

I have tracked down the orgional IP and mailed him, though the orgional company is no more, he still is a IP, could that work, do you think?

Foggy

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Post by Foggy » Wed Oct 28, 2020 3:37 pm
Wed Oct 28, 2020 1:41 pmsusan826 wrote:
Thank you both
No I have only just found out it was secured, I am going to need to make a plan with them.

I have tracked down the orgional IP and mailed him, though the orgional company is no more, he still is a IP, could that work, do you think?
When a complaint of this sort is made it is generally against the IP, as the named supervisor, rather than the Insolvency firm itself, so contacting him direct should suffice --- you can search online for his regulatory body membership details if needed. https://www.gov.uk/find-an-insolvency-practitioner
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

WallE

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Post by WallE » Wed Oct 28, 2020 8:19 pm
Did you believe the account was not secured when your IVA was proposed? Was it on there when you signed the proposal? How did the IP know about the debt?

The IP potentially didn't know the account was secured - they would only know if you told them or the creditor told them. It's a bit odd that the creditor didn't tell them upon receiving the proposal however! They can only propose what they've been presented with, surely?
I work for one of the UK's biggest Insolvency Practitioners. All posts I make are my own thoughts and/or opinion and are not the views of my employer. None of my posts constitute legal advice and should not be taken as such.

susan826

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Post by susan826 » Wed Oct 28, 2020 9:23 pm
I did not know it was secured. I gave the IP a letter that was sent to me from them, it did not state secured and they have not contacted me since, till now. They did not respond to the IP.

I understand the IP should have checked the land registery.

WallE

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Post by WallE » Wed Oct 28, 2020 10:18 pm
Perhaps, but the land registry entry would not state specifically state what account it was, just that there was a charge and when it was placed.

That and until the IVA was approved they would have no reason to look at land reg until they were placing a restriction themselves - as a secure account wouldn't be bound. At the time the IVA was proposed they should have/would have asked you about secure accounts, and if you didn't know it was secured at the time they wouldn't have known any different either.

I agree this is a really unfortunate situation but I'm not sure how much responsibility your original IP has for it, they can only go what you tell them and what they have available.

You signed your proposal to state it was correct, to the best of your knowledge, as did the IP. If neither yourself or your IP knew it was secured how was your IVA mis-sold?

I would agree with earlier comments that the best way forward is to talk with your IP about the viability of your IVA going forward and how it can work around your secured debt.
I work for one of the UK's biggest Insolvency Practitioners. All posts I make are my own thoughts and/or opinion and are not the views of my employer. None of my posts constitute legal advice and should not be taken as such.

susan826

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Post by susan826 » Wed Oct 28, 2020 10:35 pm
Thank you that helps, I see that. I entered this on a different playing field. I shall have to see what I can do to get out.
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