IVA Disputes

nickybutch

Hi There,
I have a dispute within my IVA at this moment.
It would be great if anyone can help me ANY advice upon this matter.

I am currently preparing with my Insolvent practitioner a new VARIATION arrangement because I became UNEMPLOYED due to illness a year ago and they are going to help me start paying my IVA at a reduced rate of £100 per month instead of £264 per month.

While during this preparation, I found out that ONE of my creditors ABBEY NATIONAL (Santander) has claimed for a HIGHER amount than the ACTUAL amount and has done so since I LAUNCHED my IVA in MARCH 2007. I will explain what I mean.

Abbey is claiming in my IVA £3980.25, the ACTUAL amount which is ON my LAST STATEMENT which I received in OCTOBER 2009 is £3949.75 which is NOW reduced to £3553.60 dating from 27 May 2009. Interest of £396.15 was ADDED by them on the SAME DAY. ABBEY DENIED THIS.

I am now in dispute to CLAIM ALL of this money back as they have broken the Insovlency Act by ADDING INTEREST to a claim while in an IVA.

To clarify, Abbey is claiming £3980.25 on my IVA INSTEAD of £3949.75 (the ACTUAL amount) which is NOW been reduced to £3553.60.

Any ideas on how am I going to sort this problem out.
Can I get any refund or compensation or what ?
Can I take the to COURT because the FOS can NOT help me.

Please I need HELP and I need it NOW!!!
Thank you
nickybutch

Nicholas Butcher,London UK

nickybutch

Just an Update for you.

I have just got a reply from my Insolvent Practitioner saying that ABBEY had just realised their error and will bring the IVA claim down to £3553.60 and will get a dividend from the IVA.
I am entitled to the DIFFERENCE between the IVA claim and the NEW balance. They said that I will NOT get anything from this.
Am I NOT ?
I have emailed my IP saying that I would like some compensation from them. I am going to try.
Do you think I am entitled to the money as compensation at least ?
Any Ideas ?

Nickybutch

doelani

HI Nicky

I am sure someone will correct me but final claims are not made on your IVA until the end. Some of my balance varied from my statements etc when creditors put first claim in. Was all rectified when final pay outs made.

Cannot see why you would be entitled to a refund for something that has not been paid. Up to your IP to check the figures are correct before he pays out at end of IVA.

Also cannot see how you would have a claim for compensation.

nickybutch

The answer is quite clear.

Abbey put in an IVA BEFORE the start of my IVA in MARCH 2007 with an amount HIGHER than the ACTUAL amount on my final statement at the time - £3980.25.
This amount was SOLD in Dec 2007 and Nov 2008 - £3949.75.
How they got a figure of £ 3980.25 from , I don't know.

BUT, this was SOLD again in May 2009 AFTER "OUTSTANDING INTEREST" WAS added to a REDUCED amount of £3553.60
So, to me this means that I have been CHEATED out of £ 426.65. THIS IS MY MONEY AND I AM ENTITLED TO IT.
In a way, Abbey made a BIG ERROR in 2007 and ONLY just realised the ERROR.
THEIR FAULT, THEY WILL SUFFER FOR IT.
Under a new banking legislation which was brogut in LAST year, ALL transactions SHOULD be reimbersed while under invesigation.
This was an ONGOING dispute and it was under investigation by my IP. ABBEY SHOULD pay me back THIS TRANSACTION of £426.65
Agree ?

Nickybutch

trudij

Im confused - it sounds to me like the best you can hope for is that Abbey have to take that outstanding amount off their amount - and the extra bit will be shared between all your creditors. ( I have a similar problem with egg in my IVA - I calimed back all my cc charges - but they paid themselves the outstanding charges that they should have paid over to me - they are going to have to declare the new amount at the end (both me and BE are watching this closely - !!!!!!!s!!) and they will get less.)

I dont see why you would get compensation for this either - and you would have to hand it over anyway as it would be classed as a windfall surely?? How are you entitled to an amount that has been added onto a closed bank account (which im assuming it is) that is involved in an IVA?? The bank are only getting back a certain amount of p in the £ - so they are hardly going to give you money in your hand for something that got added the day your iva started when you arent giving them the whole amount you owe them....??

I agree it would be nice if you suddenly got £400 that you werent expecting - but I cant see it happening???

adfax

Just to add to trudij's comments ... at the end of the day you will not be repaying the full amount that you owe to Abbey anyway, so you really don't have any grounds for asking them to give you money.

I doubt if this error will have made any difference to how much you pay each month - the only impact it may have is to artificially inflate their share of the pot. Whilst this may not be 'right' it is more something for your IP to worry about, not you.

If I was you I would quit while I was ahead. You are going to be asking a lot from your creditors if you are expecting them to reduce your payments from £264 to £100 per month - you will need as much good will as you can to pull that off!

Good luck with getting the variation, but I would back off of Abbey if I was you.

nickybutch

I am going to back off.
But I think I was right, because Abbey placed an amount of £ 30.50 onto my account BEFORE the IVA started and THEN in MAY 2009 placed "OUTSTANDING INTEREST" of £ 396.15 onto as well.
NOW they have realised it was an ERROR in the first place.

Who is right then, ME or THEM ?
I have now got a second point.
What about if a PPI was NOT FULLY taken OFF and then SOLD it on to a credit company for a MUCH higher amount than what it is SUPPOSe to be.
I will explain. I got a PPI refund of £ 2020.01 in October 2009. Loan was £ 8901 over 84 months @ 11.9%, PPI premium of £ 3797.97 plus interest of £504.01.
They said to a FOS adjuicator who is dealing with my complaint saying that I got a PPI refund of £ 2281.97, a member of another forum did the sums for me a couple of weeks ago.
It works out that if the WHOLE PPI premium was taken off then the loan amount would be £ 8215.31.
It reads NOW 2 different amounts £ 10,235.32 & £10,620.03 - they are NOW saying BOTH figures are CORRECT.
How can it be if the PPI refund from OCTOBER 2009 was NOT taken off the LOAN in which the £ 2281.97 was ?
And somehow between 2007 and PRESENT I have an UNKOWN amount of £ 384.72 appears to be added to this loan and then sold on.
To me, this is ILLEGAL and EGG are breaking the IVA rules. They are lying to me , when I got a reply from the FOS on 16 August saying that someone from EGG had contacted me DIRECTLY and had resolved my queries.
NO ONE FROM EGG HAD CONTACTED ME DIRECTLY WHATSOEVER AT ANY TIME ?

I think that my IVA is in dispute by Egg and there might be hope because of a letter I wrote recently to the CHIEF EXEC of the FOS and I am waiting for an answer.
It could be a large compensation or small, which could be a good thing or not.
I will let you know.
nickybutch

trudij

well as you may have guessed, Egg arent top of my list of favourite companies within my iva - so you go for it !!

from my point of view, i dont even care about the money - im so greatful that everything is being sorted for me, its more that egg have been really sneaky about keeping money that actually IS rightfully mine as the charges were put on before I came into my IVA - and they are now trying to get themselves extra. Ive never had a problem with handing over the 50% of any extra I earn - but i DO have a problem with them taking more than their fair share.... grrrrr!!

good luck, and yes - please keep us up to date !!