Need some advice please

leannec

Hi all , im new to the forum and could really do with some advice please.

My husband entered into an IVA on 9th dec 08. On of his creditors, Natwest, have been sending letter after letter about his personal bank account. He had an unauthorised overdraft of around £500, which incidently came about as Natwest have charged him interest and a fee for the last god knows how many months. Any way to cut a long story short I checked our business bank account statement yesterday and there was a bank transfer on 10th August for £497. This turns out to be the unauthorised overdraft. Now although they sent letters about the account asking him to sort it out basically or they may take money from other accounts no letter was recieved to say they were going to take it or in fact that they had. Hubby had spoke to them a couple of times to tell them that he had the IVA and that Natwest had entrered into it blah blah and to contact their insolvency department. At the same time I contacted the DMC and asked them to contact Natwest and confirm the IVA. After all my rambling, my question is can we get this money back as by right they shouldnt have taken it as the overdraft was included on the IVA?

Thanks for any help

Leanne x

Charco_2

Officially your bank should probably not have done this however they would reasonably argue that they have a right of offset and there is very little you can do about it - nothing in fact!

Your IP/IVA provider should have instructed you to remove all monies and close bank accounts with creditors to whom you owed money and who would be included in your IVA.

Nick700

Just a couple of further things -

If you have any other debts with Natwest included in your IVA such as a personal loan, it will still be worth changing the business account to another bank you don't have debts with, to avoid this happening again.

If you are struggling to make your IVA payments at the moment because of Natwest taking this money, speak to your Insolvency Practitioner who may be able to arrange for you to miss a payment and either add this payment onto the end of your IVA or arrange for you to repay the missed payment over the next twelve months of your IVA.

Nick

leannec

A lot of the interest and charges have been incurred since the IVA went through the courts last December. Am I right in thinking that the account should have been frozen at that point any hubby shouldnt have incurred any further charges. Am I right or wrong?

Charco_2

Well yes!?

So the debt they seized your money for is already in an IVA for 6 months now!?

You really should have cleared everything away from a bank with a debt... Technically the account should have been frozen and no more charges incurred but the banks always say news like this takes time to filter through their departments to get... bored now!

It's up to the IP then to sort through the Proof of Debts then to see how much each company receives from your contributions.

The long and the short of it is that that money is probably gone and lost forever, just make sure your IP/IVA providers know that they've already taken a large sum from you and that it isn't included twice in your IVA!