What can be done if a creditor adds fees and charges?

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sarah623
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by sarah623 » Tue Jun 20, 2017 8:09 am
Hi
I was in an IVA I was just wondering what can be done if a creditor adds fees and charges? The IVA commenced in march 2008 and terminated in 2014. I've noted that in April, may, June, July, august, September and October of 2008 a creditor added interest and fees. The interest was only a total of 8p and the fees were £30 but I didn't think they were allowed to do this. The IVA company paid them a sum in 2010 of just over 1200. I'm a bit concerned about this so was just interested if there was anything I could do? Thank you.
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Foggy
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by Foggy » Tue Jun 20, 2017 8:29 am
Hi. Where did you get notification of these additional charges ? Often the final claim a creditor makes is slightly higher than the admitted debt at the outset, being usually based on the last crdit card / loan statement to hand at the time. Given the time the creditor will often add in the interest and charges accrued between that last statement date and the start of the IVA in their final claim.
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sarah623
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by sarah623 » Tue Jun 20, 2017 8:41 am
Hi Foggy,

Unfortunately my IVA failed in 2012. Not good I know. I received a statement last week as I still have some to pay. I was just concened as I know it's not a lot that they added but they did this shortly after I entered the IVA and they would have been aware that I was in one at that point and this is something that I thought they were not allowed to do whilst I was in the IVA as I thought it was legally binding where they couldn't add interest and charges during that time as I was paying the IVA company and they were taking £36 a month to give to that creditor
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Foggy
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by Foggy » Tue Jun 20, 2017 8:53 am
Unfortunately, if an IVA fails, they can add back the interest as though the IVA never happened. You do not get an interest free period of grace.
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sarah623
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by sarah623 » Tue Jun 20, 2017 8:59 am
Oh I inderstand that. But the IVA commenced on march 2008 and it was paid every month on time and in full until 2012/2013. The creditor added charges for several months during 2008 when I was in the IVA and had no problems with the payments. This is the time I didn't think they could do it. I thought that would have been against the IVA "rules" at that time
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Lisa Thomas
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by Lisa Thomas » Tue Jun 20, 2017 11:32 am
The IVA failed therefore the creditor is entitled to claim any relevant charges an interest. During the IVA period presumably regular payments were not made, hence the charges.
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sarah623
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by sarah623 » Tue Jun 20, 2017 1:16 pm
Hi Lisa,
The charges were added at the beginning of my IVA, this is when all payments were being made to my IVA company on time and none of them were missed.
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Michael Peoples
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by Michael Peoples » Tue Jun 20, 2017 1:44 pm
You could take this up with the creditor and ask them about the charges and they may well waive them. However given that the total interest and charges from nine years ago was £30.08 personally I would not be too bothered and instead try and reach agreement with them to clear the outstanding balance.
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sarah623
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by sarah623 » Tue Jun 20, 2017 2:17 pm
Hi Michael,
Thank you. I'm not worried about the £30.08 it's silly money but o have a huge complaint going through about the creditor at the moment and just wanted to clarify whether they should have done this at the time in question as my IVA eventually failed because of change of jobs an less earnings and basically my fault, which is something that is stated in the terms of an IVA but when a creditor doesn't adhere to the terms nothing was done and this was a few years before I messed up :oops:
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Michael Peoples
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by Michael Peoples » Tue Jun 20, 2017 2:25 pm
I take your point. Some creditors can be more than unreasonable and I must admit that I was surprised to see that your IVA was failed after all that time. Usually IVAs are closed down on payments to date, early settlement etc when they have almost reached the end. I assume this creditor was a pain during the IVA too.
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sarah623
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by sarah623 » Tue Jun 20, 2017 2:51 pm
Yes they were a pain. I was only 23 at the time of applying for the loan and I was naive, they told me that I would have more chance of being accepted if I took the PPI which I did. They couldn't and still can't make up there mind whether the loan is open or closed, how much they lent me, whether I had PPI or not (which I did) they even re wrote the loan with out my consent. I have no problems or issues paying what I owe but when I feel they've been taking advantage (they probably think I'm stupid as was dumb enough to take PPI) I don't think it's fair. They've made so many mistakes and now I'm paying for it. The list is endless.
Thank you for your response though I do appreciate it
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