Fluctuating settlement amounts given by IP

paulhf_2

Hi all,

I posted up some time ago with regards to an inheritance my fiancee had, and the effect an IVA would have on it.

We finally have the inheritance money in her account, but we have run into more problems with the IP.

We asked the solicitor to write to the IP asking for a figure to settle the IVA - the IP contacted the solicitor to say that a "worst case scenario" figure of £34000 would settle the debt - as such my fiancee released £34000 of her inheritance to the IP. My fiancee's full debt was around £39,000, and she had paid £12,000 of so far.

He contacted us yesterday to say he needs an additional £6600 to settle the debt, as nearly all the creditors are refusing to waive the interest payments - he said the difference was because his calculations were based on conservative interest estimates - a pertinent question would be why give a worst case scenario figure based on conservative estimates? Whilst we can understand a small difference from the "worst case scenario" figure, we feel a difference of £6600 is both negligent and incompetent. It may be worth mentioning he has said he has started paying dividends of 100p in the pound to the creditors in order to "crystallise the interest".

We don’t feel he has done an adequate job in negotiating the interest with the creditors - quote "I've tried working really hard, I had to go through all sorts of Indian call centres"... surely the negotiation should have been written - as he will only likely get through to first line support in an Indian call centre? I assume that when setting an IVA up the correspondence is written, so why is not also written when settling it; we have no evidence of intent or evidence of the interest rates they are demanding. Does the IP stand to make any more money if the settlement amount is higher?

Are we able to negotiate with the creditors ourselves – can we refuse to pay it? £6600 is hell of a lot of money and whilst we are happy to settle the debt with a nominal interest amount, we feel an extra £6600 in interest is somewhat excessive.

What options do we have - has anyone been in this situation before? I'd be most grateful for any help.

Many thanks,

Paul.

Charco_2

How long were you in the IVA?

paulhf_2

Hi Charco,

I believe she has been in it for 3 years, paying £350 per month.

Max_1066

Hi

Rest assured that the IP will receive a % of any settlement so the higher it is the better. I don't see how IP's can negotiate 'hard' on the clients behalf when there is such a vested interest involved. Unfortunately IP's are a necessary evil.

Can I recommend that you always get any agreement in writing.

Good luck.

paulhf_2

Max_1066 wrote: »

Hi

Rest assured that the IP will receive a % of any settlement so the higher it is the better. I don't see how IP's can negotiate 'hard' on the clients behalf when there is such a vested interest involved. Unfortunately IP's are a necessary evil.

Can I recommend that you always get any agreement in writing.

Good luck.

Hi Max,

Thank you for the reply and the information.

I think we are going to fight the demand for the extra £6600 - at the very least we'll be lodging a complaint with the IP and the FSA - put simply, a miscalcualtion of £6600 is ridiculous, for it to be such a large figure, together with the fact he stands to recieve a cut of the settlement, is highly suspicious.

Thanks again for your help.

Paul.