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.
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
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.
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.
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.
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
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?
Hi! I used to work for one of the UK's biggest Insolvency Practitioners - I don't work for an IP anymore but still have an extensive knowledge of the IVA industry. How can I help?
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.
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.
Hi! I used to work for one of the UK's biggest Insolvency Practitioners - I don't work for an IP anymore but still have an extensive knowledge of the IVA industry. How can I help?
