Trying to pay off my IVA

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MissT

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Post by MissT » Sun Nov 15, 2020 1:29 pm
I took out an IVA last year and was told at that the time that I could pay it off quicker or pay more off each month to close it early. I upped the payments by £20 a month and then was offered the cash by a family member to close the remaining balance. When I tried to do this I was told off for paying extra and also told that I could afford more so that they were doubling the amount owed which means I now can’t afford to close it but also the debt is not that much less than the original amount, which was £11,000. The person I dealt with was extremely rude and threatening, he was purposefully difficult and when I asked for details he was deliberately speaking quickly so I could not follow. I have paid £2000 and they now want £8000.

Foggy

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Post by Foggy » Sun Nov 15, 2020 2:00 pm
If you want to pay off the IVA early, it cannot be done with increasing payments -- that way they will simply get more. You need to offer either a settlement based on the full amount of debt plus fees and possible statutory interest, or, as most do, a full and final offer. The is based on remaining scheduled payments.

Unless your income increases (or your expenses decrease) they cannot just up what you need to pay.

They need to explain exactly where they are getting their figures from. If not, or you are not hasppy, you will need to make a formal complaint to your IP which you can escalate to their regulatory body if needs be.
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

MissT

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Post by MissT » Sun Nov 15, 2020 2:55 pm
Hi,
Thanks for your reply. I forgot to add that I had a promotion which just increased my pay the month I asked to settle it so that’s why they have changed the amount owed. But as it is not much less than the original amount owed I’m wondering whether to come out of the iva and deal with the creditors directly in order to settle this quicker. I’m the thought of paying rent for the next 4-5 years and never owning my own home is depressing.

Foggy

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Post by Foggy » Sun Nov 15, 2020 3:19 pm
Coming out of an IVA is rarely a good idea, unless you are thinking of a DRO or bankruptcy as 'PlanB'. The creditors will be able to add back lost interest and charges and your debt could increase quite a bit ! Added to this, creditors are not obliged to co-operate with a DMP in any way, shape or form. Also, at the moment you have an 'end point' and, six years from the start, you will have a clean slate. With a DMP that 'end point' will be much farther into the future and could delay that dream of owning your home for quite a lot longer.
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

MissT

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Post by MissT » Sun Nov 15, 2020 4:13 pm
Thanks Foggy, you been more helpful than Anchorage Chambers have so far!
Do you know if it makes a difference that I was told I could pay it off early and that I could make higher payments?
Also, I’ve looked on my credit file and there is a ccj on from one of the creditors which I am paying through my iva. Should it have been removed by the iva since I am paying them?

Foggy

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Post by Foggy » Sun Nov 15, 2020 4:57 pm
If the CCJ was issued before the IVA and the debt included in the IVA, then the CCJ is cancelled by the IVA, in that you no longer pay the CCJ payments, but the CCJ will remain on your credit files as before.

What they told you about extra payments was essentially incorrect. You can complain but will have to prove the conversation took place.
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

MissT

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Post by MissT » Sun Nov 15, 2020 5:01 pm
Ahh ok, I understand.
The calls are recorded so hopefully they can get the info from there, although I’m not sure what would happen even when it’s proven anyway. They’ve already broken their complaints procedure which they outlined in their letter as they haven’t got back to me in the time they gave.

Foggy

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Post by Foggy » Sun Nov 15, 2020 5:49 pm
If their complaints procedure has failed you are able to escalate the complaint to their regulatory body via the Government Gateway here: https://www.gov.uk/government/publicati ... actitioner

It might result in them getting a slapped wrist or a fine and often the threat of a complaint makes them respond to the issue at hand.
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

SteveUK

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Post by SteveUK » Mon Nov 16, 2020 8:34 am
I do wonder if people are given all the facts before starting an IVA.

Is it possible some companies are deliberately lowering payments the first year to entice people in?

Foggy

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Post by Foggy » Mon Nov 16, 2020 9:05 am
Mon Nov 16, 2020 8:34 amSteveUK wrote:
I do wonder if people are given all the facts before starting an IVA.

Is it possible some companies are deliberately lowering payments the first year to entice people in?
If there is no significant change from year to year they should not be able to increase payments, so, if they did under estimate at the styart tyhey could be stuck with the low repayment for the duration. I doubt, then, that they would do this to draw people in --- but they often do gloss over the realities of an IVA and make it appear too good to be true, knowing that they have got you over a barrel once signed up.
The issue with knowing what you are signing up for is a clouded one .... oftentimes, by the time someone realises they need help, people are in dire straights and panicking. They need to take action quickly and do not listen to the ins and outs. At the very least we advise chatting to more than one provider to compare advice and sitting down with the paperwork, over a cup of tea or two, and understanding it --- ask questions on here or ask the provider to explain in plain language ---- BUT --- some providers put undue pressure to sign what is, after all, a big deal!
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
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