I think im being ripped off

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kevin211
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by kevin211 » Wed May 17, 2017 3:02 pm
im in a iva have been for two years my total repayment over the 5 yrs is 22,000,the original debt was 12,000 ,i was let to beleive that i would not pay any interest i also am paying 97,00 pounds a week ive spoke to unity and they say this is correct i think im being ripped off.
Please can anyone suggest?
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kallis3
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by kallis3 » Wed May 17, 2017 3:11 pm
Hi and welcome,

Is your £12k debt your total amount of debt or just what your company agreed would be your IVA payment? You will have to pay fees to your company and also, possibly, statutory interest.
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Foggy
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by Foggy » Wed May 17, 2017 3:16 pm
That doesn't sound right at all ----- and -- to cap it all --- £97 a WEEK ? Usually payments are monthly --- but at £97 a week, you are talking around £420 a month -- and you couldn't afford the repayments on £12k of debt ???

This does not add up at all.
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Lisa Thomas
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by Lisa Thomas » Thu May 18, 2017 8:51 am
The figures seem roughly correct if creditors insisted upon 100% repayment plus statutory interest plus costs.

Debt £12k
5 years of interest c£5k
Nominee costs say £2k
Costs say 15% c£3k
Total £22k
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Foggy
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by Foggy » Thu May 18, 2017 9:52 am
Lisa Thomas wrote:
The figures seem roughly correct if creditors insisted upon 100% repayment plus statutory interest plus costs.

Debt £12k
5 years of interest c£5k
Nominee costs say £2k
Costs say 15% c£3k
Total £22k



Hi Lisa -- on that basis the figures do add up. But, my point was that, if the debtor could afford a monthy payment of £420 against a £12k debt, was an IVA the right thing ? Of course, it could be, if the creditors are these 349% p.a lenders I guess !
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Michael Peoples
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by Michael Peoples » Thu May 18, 2017 10:21 am
If this is true it sounds like a DMP or even a consolidation loan would have been a better option if the debtor could not afford the monthly payments. Seems an awful lot of money.
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Lisa Thomas
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by Lisa Thomas » Thu May 18, 2017 11:09 am
I did wonder whether the poster is actually in a DMP, not an IVA...
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