Overpaying on my IVA

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Post by craig918 » Tue Sep 01, 2020 7:48 pm
Hi I’m currently on year 4 of my Iva with creditfix I’m paying 100pence in the pound so I’m paying 100% of what I originally owed my question is if I continue to pay my monthly contribution for the final 12 months the total amount I would pay would be £2479 so i rang credit fix to pay in full as I have come into a bit of cash but they have told me that if I want pay in full today the cost would be £3666 this just doesn’t make sense and customer service were as clear as mud help.....🤯. When I took the Iva out It was for £9450 and I had ppi of £6700 which they had And Iv been paying £190 for 4 years so if my math is right that’s £15820 Iv already payed rant over cheers craig


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Post by Foggy » Tue Sep 01, 2020 8:19 pm
Unfortunately in order to pay 100 p in the £ you have to also pay fees and possible statutory interest, which are paid before any debt is paid, and CF are amongst the most expensive firms out there.

On a debt of £9450 to cover the full debt you would need to pay in around £14k plus disbursements, plus that possible statutory interest (which is sometimes excluded), but is calculated at 8% p.a simple on the reducing daily balance.

All that sounds bad, but usually works out at less than the contractual interest would have been. Unfortunately the proportion of fees is worse on the smaller debt levels.

Now -- and more to the point -- what CF have told you is a settlement figure. Which is the balance of the £14k I mentioned above. What most early finishes are achieved with is a Full and Final Offer --- This is based on remaining payments only. Most IPs are happy to present this offer, but CF often aren't (less payments = less fees) . If you have 12 months left an offer of £2280 would suffice.

However -- if, as you say, you have 'come into a bit of money', this would be payable to the IVA anyway as a windfall, so would not be yours to bargain with.

Finally --- of that £6700 PPI, about £2k would have gone in claims company fees and another £1k to CF, so only £3700 would have got to the creditors.

Still clear as mud, I am afraid !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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