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Advice needed against our old IVA.

My wife and I were in an IVA for 5 years and last year decided to release equity from our home to finish our IVA which was agreed by our creditors.

This money was paid to W3 for them to distribute to the creditors and thus complete our agreement according to the terms and conditions set out in the IVA.

About two months ago (10 months after we paid) we were finally sent a letter from W3 confirming that we had settled our accounts and that we are no longer in the IVA. Contained within the letter was a breakdown of the monies that we had paid and where they’d been distributed. At the bottom of the letter there was a description called "balance at bank" I called W3 to enquire what this figure is and what would it be used for?

Now this is where the plot thickens; they informed me that their "system" mistakenly distributed the wrong amounts to each creditor! and they have asked each of them to pay back the monies owed so they can re-distribute the funds. Some of the creditors have apparently done so, but others have said they will only send the difference etc....

We settled the IVA in May 2008 and due to the "system issue" by W3 the creditors still have us as owing them money i.e. (black listed) and will not send the credit search companies confirmation that we have settled until W3 pay them!

I have called W3 again and again to have this sorted ASAP, but I keep being told that they are still waiting on some of the creditors to send their cheques back.

We paid approximately £40k to W3 and I feel that not only are they accumulating interest on this figure, but also do not seem to care about clearing this "mistake" in a timely manner.

If you are still reading this and haven't been put off, I would very much appreciate some advice on how to progress this situation and get our names cleared ASAP.

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