X-Debt, Hanover Sterling and Overpaying IVA

Southpaw18

Hi All,

I built up around 17k of debt getting a degree, and after alot of car issues. I wasnt failing the payments on my loan or two cards, but the job i had and renting a house was leaving a very tight margin and i was having to borrow off of friends to pay bills at the end of a month.

I went to a gov't website for advice, next day i had a call from Hanover Sterling (presuming it was government advice) and the recommended Debt Management. Being a bit of a pushover and feeling vulnerable I agreed. I was paying £150 a month to them (as opposed to the £260 direct to creditors) but they never set a date when id be clear. I paid for a year, never missing a payment, and they put me in touch X-Debt, who are very much IVA, no option but. . I never feel vulnerable and always speak up but in this situation i thought every1 had my interests at heart (and still presuming its government based).

they set up an IVA, and ive paid them £215 a month for over a year, last week, i had a collector at my door, after 1 year of CONSTANT letters from my 80% creditor for my loan, Xdebt have told me on 8-10 occasions its dealt with but nothing changes.

job change has meant that i cant afford this and have been on a payment break, now im saying i can afford £145-150 PM and they are pushing for more, yet my loan creditor sent a letter today saying they will accept £50 a month. Now from what i know, the loan creditor is getting £75 pm, and they are my 80% debt, so are xdebt taking a huge chunk or what?

I feel like I have to be with them now, and they are still chasing me for debt, and it would appear if i keep up these payments im barely cutting out any debt anyway. I want to repay and dont want to go bankrupt, but am I not in a position to just handle the creditors myself? if they will accept £50 a month why should i pay so much?

thanks and sorry for the length, but as most of you know its not an easy subject.

Charco_2

Right first of all... IS THIS REALLY AN IVA?

If you're in an IVA, the your creditors have no right to keep hassling you for money and you should threaten them for a change.

DO NOT PAY ANY MONEY DIRECTLY TO YOUR CREDITOR until you've sorted this out... they say they'll accept £50 a month (but that will rise as soon as they get you back on the hook) and they don't mention how long that's for etc....

I can see you're getting no kind of service from anyone at the momment and that sucks, first thing to sort out is ARE YOU IN AN AGREED IVA?

Southpaw18

Hi,thanks for the reply.

Well, if it isnt an IVA they have covered it well. I have had a legal date and confirmation by letter that the creditors agreed to a set amount. I do have details of all of this myself, however it just seems im paying a huge amount on top of what im actually paying my creditors, it looks to me like more than 50% of what im paying the company is going to them and not to my debts, which doesnt seem right.

it would appear the IVA was agreed, but the collectors are saying that the creditor has not informed them of any agreement, i actually had to tell a debt collector at my door that id forward on a copy and then they would leave me alone, obviously with the money im paying X-Debt I expected them to do this themselves, yet ive still received 2 more letters since.

Im getting a call today from them as i deal with them by email but it would appear they want to call me to discuss these problems, maybe because they dont want a trail after? im not sure.

Charco_2

Did you see your name on the Insolvency Register?

If you're saying that this company is owed 80% of your debt then they HAD to vote on it to agree it. You need 75% to agree it, so it didn't matter what your other creditors said, THIS CREDITOR had to agree it!

***Just a wee note on fees***
The fees your IP receives are agreed with your creditors, so regardless of how much of the money you pay in to the IVA whether your creditors agreed that your IP can keep £5k or £10k doesn't matter so long as you keep up your payments. The fees are set out in two ways:
1. Nominees - payment for work carried out researching and drafting your proposal and NOMINATING it for an IVA
2. Supervision - an agreed fee for supervising the IVA over the next five years

The nominees fee is usually about £1k-£2k and the supervisors fee is about £400 a year... If you are early in your IVA then most of the money you pay in is going towards your IPs fees (Nominees fee and one year Supervision) then as the IVA progresses obviously there are less ongoing fees so more of tyhe money you pay in is going to your creditors.

X-debt

Hello Client

Assuming you are in an IVA, I can't know for sure as I don't know your name, but if you are I am your Supervisor. I am extremely concerned that you feel that you are not getting the level of support that you should be getting and I would like to personally address any queries you may have. There is a remedy to help you if your circumstances have changed but I have to balance your interests with those of the creditors who have agreed probably to write off a large proportion of your debt. An IVA is designed to alleviate your debt problems and staive off bankrupty but requires you to maintain a tight budget set by the CCCS which we hope re-educates your financial spending for when you come out the IVA. You will be debt free when the IVA finishes unlike debt management where you have to pay crediors in full but over a prolonged period of time. Creditors shouldn't be contacting you but they are required annually to send you a standard letter regarding the debt. Many creditors use agents to vote on IVA proposals and occasionally lines of communication fail and even though we send numerous copies of papers some creditors still pursue people for their debts. Please contact me on [EMAIL="enquiries@x-debt.co.uk"]enquiries@x-debt.co.uk[/EMAIL] or via my website debts-solved.co.uk so I can assist you.

simon_kemp

We are suing Hanover Sterling in Altrincham County Court on March 6th 2012 due to their negligent handling of our creditors;although we paid Hanover Sterling every month they did not pay our creditors as they were contracted so to do.Hence our action. Our credit file has been severely damaged by Hanover Sterling.Their website is still up but if you telephone the advertised number you will be transferred to Fairline Financial who will tell you that Hanover Sterling no longer exist and that Fairline are dealing with Hanover's former clients.
However,Companies House records show that Fairline Financial was a dormant company set up some time ago and was formally known as Hanover Sterling.Both companies occupy the same building,have the same telephone number and some of the same staff.
The FSA have also listed Hanover Sterling as being unregulated and they have been reported as an organization guilty of bad practice.
In view of our experiences I would urge everybody to steer well clear of [TEXT DELETED BY FORUM TEAM] Hanover Sterling and frankly any other unregulated debt management company

















I built up around 17k of debt getting a degree, and after alot of car issues. I wasnt failing the payments on my loan or two cards, but the job i had and renting a house was leaving a very tight margin and i was having to borrow off of friends to pay bills at the end of a month.

I went to a gov't website for advice, next day i had a call from Hanover Sterling (presuming it was government advice) and the recommended Debt Management. Being a bit of a pushover and feeling vulnerable I agreed. I was paying £150 a month to them (as opposed to the £260 direct to creditors) but they never set a date when id be clear. I paid for a year, never missing a payment, and they put me in touch X-Debt, who are very much IVA, no option but. . I never feel vulnerable and always speak up but in this situation i thought every1 had my interests at heart (and still presuming its government based).

they set up an IVA, and ive paid them £215 a month for over a year, last week, i had a collector at my door, after 1 year of CONSTANT letters from my 80% creditor for my loan, Xdebt have told me on 8-10 occasions its dealt with but nothing changes.

job change has meant that i cant afford this and have been on a payment break, now im saying i can afford £145-150 PM and they are pushing for more, yet my loan creditor sent a letter today saying they will accept £50 a month. Now from what i know, the loan creditor is getting £75 pm, and they are my 80% debt, so are xdebt taking a huge chunk or what?

I feel like I have to be with them now, and they are still chasing me for debt, and it would appear if i keep up these payments im barely cutting out any debt anyway. I want to repay and dont want to go bankrupt, but am I not in a position to just handle the creditors myself? if they will accept £50 a month why should i pay so much?

thanks and sorry for the length, but as most of you know its not an easy subject.[/QUOTE]