Mis-sold IVA?

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zoe593

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Post by zoe593 » Thu Dec 03, 2020 10:25 am
Good Morning, I hope this is the right place to come for some advice as I am looking to help a friend out with some money issues.
Last year she entered into an IVA agreement, but looking at her situation I think that this was not a suitable option for her and she was coerced into it by the company without proper guidance.
Her debts are – approximately £5000 with likely loans (which I feel she has a case for irresponsible lending)
£600 with nationwide
And approx £50 on a catalogue.
This was all taken out at 22 with no regular income to her name. The IVA was also taken out at age 22 even though she had never missed any payments with her debts – just struggled finding the money to pay them. She was never advised by anyone to approach the companies directly to work out a more affordable option and as far as I’m aware, she herself did not realise this could be done.

My question is, is it possible to appeal somewhere to reverse the IVA on the grounds it has been misold to her and claw back her credit record which I believe was fine before taking this IVA out. She has never had a default or a debt sold.
Is this something that can be taken up with the Ombudsman or does she have to accept this as a mistake?
The paperwork is confusing, but im sure the fees alone of her IVA amount to almost double what she needs to pay.

Thank you so much for your time and consideration.

Foggy

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Post by Foggy » Thu Dec 03, 2020 11:39 am
There is, I am afraid, no ombudsman with jurisdiction over IVAs. She could complain to the providers regulatory body .. but this will get her no redress and they will not intervene directly. They may fine the provider or give them a slap on the wrist.

I agree that an IVA for a debt of that size is, probably, not the way to go. Unfortunately, she signed up for it and it will stay on her credit record for 6 years regardless of what happens to it now --- the only way to clear everything up would be to go to court to have it anulled, which would be expensive and may not be successful --- it would cost more than the original debt.

The fee structure should be detailed in the Chairman's Report (minutes of the creditors meeting when they decided to accept the arrangement) but, typically you are looking at around
£1750 Nominees fees ( for setting the thing up) 15% of payments (for Supervisors fee) and disbursements around £500. Some firms charge 20 - 25%.

Might I ask who she is with and what are her payments ?
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

zoe593

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Post by zoe593 » Thu Dec 03, 2020 12:07 pm
Hi, Thankyou for the prompt reply.

Costs are as follows
Bankrupcy - Bank charges - £264
Legal Fees - £2500
Official Receiver - £497
Official receiver general fee - £6000
Official income payments - £150
Petitioners Costs - £1500

Arrangement - Nominee remuniration - £1000
Supervisor remuneration - £678
Disbursements - £1983
Specific Bond - £24
BIS Registration fees - £15

I don't understand it well enough to make heads or tales of it.

She was paying £93 a month which has now increased to £400, but she has no paperwork confirming these changes or if it reduces ther term of the IVA

kallis3

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Post by kallis3 » Thu Dec 03, 2020 12:23 pm
I am wondering why they have all these fees for BR when she is in an IVA. I never had anything like that. She could make herself bankrupt without all of those costs. She could also let her IVA fail and, depending on her monthly disposable income, go for a DRO which would only last 12 months (credit record would still be shot though) and she would be debt free.
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 Dec 03, 2020 12:37 pm
None of those BR fees should be levied -- and there is no OR in this case. The other fees look reasonable, though the disbursements might need some explaining.

What firm is this ?
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

zoe593

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Post by zoe593 » Thu Dec 03, 2020 1:03 pm
Hi sorry, the company is QIS - quality insolvency services

What are the repercussions of it failing? Will she have to pay the fees?

Can she get out of it? She has no money to pay upfront costs. I’ve told her I’ll help her contact the creditors directly.

kallis3

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Post by kallis3 » Thu Dec 03, 2020 1:50 pm
She lets it fail by missing three payments. She should not have to pay any fees.

QIS are intermediaries and she would have been passed on to a company with an IP. Check her paperwork and also the Insolvency Register to see who the IP is.
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
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