Payment arrears and hoodwinked into paying extra

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Lindadm96
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by Lindadm96 » Tue Jul 04, 2017 9:54 am
We are in the extended year (6th) of our IVA. Due to a dispute over the amount of repayments we were in arrears of £861 and agreed to extend the period an additional 2 months to cover this. As we are nearing the end of our 72 months, we enquire if we could pay the arrears in one go i.e. £861. However they are saying no we need to pay the 2 months which would amount to £1144 and it is our fault as we agreed to the extra 2 months payments! Their letter says to extend the period by 2 months which we assumed was for the outstanding amount and not nearly £300 extra. What can we do?
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kallis3
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by kallis3 » Tue Jul 04, 2017 10:32 am
Personally speaking, I think that because you agree to pay the 2 months that you will have to do it. I could be wrong and hopefully someone will be along to confirm or otherwise.
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Foggy
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by Foggy » Tue Jul 04, 2017 11:15 am
I agree with Kallis -- it is down to the wording of the agreement you made. Usually an extension is made at the rate applicable at the time. In hindsight you should have agreed to pay the arrears of £xx rather than 2 months.

It would have been interesting to see what your provider would have done if your monthly payment had been reduced !!!
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Michael Peoples
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by Michael Peoples » Tue Jul 04, 2017 11:42 am
I would think that provided you cleared the arrears before the end of the 72 months then you only have to pay £861. If however the IVA gets extended because of the arrears then possibly two months payments would be due but again I would check the paperwork.
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