Big increase in monthly payments for IVA

Fatbloke_3

I've been informed today by the company that administers my IVA that they want to increase my monthly payments by 74%, which frankly worries me sick.

A bit of background - I took out the IVA in May 2006, and so am just finishing the third year. I've been lucky enough to get a promotion in work whilst the IVA was going - this was over two years ago, and has resulted in my IVA monthly payment increasing from around £250 to £380, which is what I've been paying up until now.

However, I was told this morning that they want to increase my monthly payments from £380 to just over £660! This is out of a total disposable income of £771 (this £771 DOESN'T include the IVA payment of £380 - it's what's left over when I've paid the bills - so once the IVA was paid, that left me with £391 a month disposable income). I understand that they will take as much as they can, but this increase would leave me with £111 a month disposable income - or £27.75 a week. My monthly take-home wage has increased since the last annual IVA review (which was carried out exactly a year ago) by £54, or just under 3.5%.

I had a 'full and frank' exchange of views with the company's representative, and he said he would talk to his supervisor on Monday and ring me back in the week, but really didn't seem sympathetic in anyway, merely quoting the formula they use for repayment. I have asked him to send me details of the formula they use to calculate payment, and he confirmed he would.

The questions I have are what are my options? Do I have to just accept this increase? If I'm in dispute, can I refuse to pay the increase? Can I move the arrangement to another company to administer who may take a lower cut and so reduce the monthly payments? Can I complain to the FSA/Ombudsman on the grounds that the proposed increase in the IVA is out of all proportion to the increase in wages?

Any advice greatfully received!

debtinfo

What does it say in your proposal, have you read it, I thought that they took 100% of your disposable income

Fatbloke_3

An IVA should still allow you to have a 'reasonable' standard of life - for example, being able to go out now and again, take a holiday once a year (nothing flash) - so it shouldn't take every spare penny.

mjm3346

debtinfo wrote: »

What does it say in your proposal, have you read it, I thought that they took 100% of your disposable income

100% sounds right to me, disposable income should be what is left after allowing for other bills, food etc and the (small) amount which should have been allowed for non essential items.

kst101

This doesn't seem right - I assume that when you say "when you've paid all the bills" that you still have travel costs, food etc to pay and expecting someone to do that for £27.75 a week isn't fair. I'm sure there are other expenses as well.

No idea what you can do about it but wanted to sympathise with you.

spaceman5

just out of interest which company administers your iva

To_be_Free

Hi I just need to get something straight in my head, so you have £391 a month left at the moment after you have paid all your bills, does this include all bills food, travel costs, etc