Amount added to IVA - LEGAL ?

nickybutch

Hello there,
I have an IVA problem in which could be good for me or not.

The thing is Egg is my MAIN CREDITOR in my IVA.
It holds the largest amount in my IVA at £ 12,517.29.
I am 3 months from starting my 4th year in the IVA.

The problem is that Egg has ADDED an ACCRUED INTEREST amount of £ 384.72 to my loan AFTER a PPI rebate was taken off it between July 2008 & May 2010.

a question which I would like anyone to answer if you can.
Do you think any bank is allowed to ADD any kind of amount to a DEBT or LOAN while the person is in a IVA ?

Under which ACT does it say this ?
I believe that what Egg has done is ILLEGAL.
I made 4 NON payments BEFORE I went into the IVA.
So, this accrued interest happened BEFORE the start of the IVA.
So Egg MUST DECLARE EVERYTHING I OWE TO MY IP AND TO THE COURTS AT THE CREDITORS MEETING. They did NOT do this.

Egg did NOT DECLARE the accrued interest at the start of the IVA and there fore lied to the courts, do you agree ?
I believe also that Egg have lied to the courts by giving FALSE INFORMATION, that is NOT DELCARING THE FULL AMOUNT OF DEBT AT THE CREDITORS MEETING, do you agree ?

I have a complaint with the Financial Ombudsman Service regarding Egg and if this is UPHELD I could have ALL of my loan returned to me and therefore CLOSE my IVA as my other creditors and fees would be paid off with the amount in my IVA so far.

So, it is VITAL that something is done. This could clear my IVA or not.

Any kind of help or advice is great.

Nickybutch

debtinfo

I would not agree, it is simply that the interest may not had been worked out at that point, All amounts owing prior to the IVA taking effect would be a debt in the IVA, regardless of whether declared or not

debtinfo

remember they are also allowed to add 8% per year during the IVA as well

althas

ermm and what does it matter, it will not affect your repayments at all, you will pay the amount set at your creditors meeting, at the end everything is cleared

I may be synical about this, but it sounds like you are after something for nothing. After all, at the end of the day, you are the one that ran the debt up, no one forced you (and yes I am in an IVA and blame no one but myself for it) to take the money and spend it

What makes you think you will get the full amount of the loan back anyway??

nickybutch

Hi, I do think I would get all my loan back.
Simply, my Accrued Interest IS AN ADDITIONAL CHARGE and IT IS ILLEGAL under the Insolvency Act.

In the newspapers, there are adverts regarding IVA's etc, websites from Debt companies that say this.
After the IVA has been put in place, your creditors, by law, can not add any additional charges or interest to any of your accounts covered in the agreement by law.
Even my Insolvent Practitioner agrees with the above statement. What have been agreed at the Creditor's meeting is binding.
If my Accrued Interest of £ 384.72 was added and declared AT THE TME of the meeting then the amount would have been declared as £ 12,901.02 BUT instead they declared £ 12,517.29.
Do not forget that this interest was ADDED AFTER I got a PPI rebate of £ 2281.97 which was reduced in my loan and this was not the full PPI amount.
At the moment, this is a complaint and being dealt with by the FOS and it is in the FINA REVIEW.
This is AFTER all of the Adjudicators so far have missed all the mistakes in this loan and IGNORED the offences in which there are many including this.

You need to read the Insolvency Act as well as your agreement.
Nicky Butch

doelani

althas wrote: »

ermm and what does it matter, it will not affect your repayments at all, you will pay the amount set at your creditors meeting, at the end everything is cleared

HI Nicky

I agree with above statement. what does the figures matter. It is up to you IP to sort out amounts of claims not you.

I remember you had a post like this before about Abbey and now Egg. Why get annoyed about this? The amount you pay is agreed and is not effected by the amount creditors claim. The IP will not come ask you for more money because a claim amount is different.

From my Creditor meeting figures and then my final dividends some clain amounts went up and some went down. This did not effect the amount we paid each month and I never queried any of them, what should I have done said XXX is not claiming enough ??

Your IP is paid to sort this just do not understand why you are getting so uptight about it all

nickybutch

Hello,
To answer the last comment.
I do not agree with you.
Simply that I have a PPI amount NOT being taken off my loan and it should have been and all the calculations regarding the dividend payments have all been messed up.

I just wanted to know where I stand with all my debts JUST IN CASE of ANY extra cash coming my way in the future.
I don't think there is any harm in this.
The problem with Egg is that my complaint with them was upheld in October 2009 but they ONLY paid £ 2020.01 of my PPI which should have been FULLY removed. The PPI premium total is £ 3797.97. They OWE me £ 2281.97 with £ 1781.97 going into my loan.

Please read this quote from a letter which I got from the FOS which by the way have been REJECTED :
"Egg has conceded the rebate of £ 2281.97 should never have been used to reduce the outstanding balance of my loan account and instead should have been paid to my IVA directly. it should be noted that Egg had initially used the rebate to reduce the outstanding balance on my loan account prior to selling off the debt to a third party. In view of the way Egg had handled my complaint, it will NOT now increase the debt remaining on my loan account due to the fact that it will now be making the rebate payment direct to my IVA.In effect, by correcting its earlier error, Egg will both reduce the loan debt and also pay the same amount to my IVA."

I agree to some point but I want to know if this include the October PPI rebate of £ 2020.01. The quote ONLY talked about the £ 2281.97 rebate. If the £ 2020.01 rebate was taken off my loan then everything will BALANCE, but I don't know.

They still owe my IP £ 2281.97 as it had ALREADY paid my IP £ 2020.01.
Also, my other thing is that an EXTRA debt amount had been ADDED which I didn't anything about. They said it was for ACCRUED INTEREST and the amount is £ 384.72. This IS ILLEGAL under the Insolvency Act and if this was for payments before going into the IVA then it SHOULD have been DECLARED at the Creditors Meeting. Egg did NOT declare this. I still believe I have a case here.

My complaint with Egg is in the queue for a FINAL REVIEW with the FOS. I will wait and see what the final outcome will be and leave it be if it isn't good news. I am desparate for the money, due to the fact that I am NOT working and have NO savings and living off benefits.

Nickybutch

Charco_2

I honestly dont think you're going to have much success with this, IVA debts vary all the time, and it's up to your IP to sort it out with various "proof of debt" claims coming in.

At the start of the IVA, the IP has a duty to verify the figures - generally by way of asking the debtor for the latest statements received from the creditors. These figures are rough and not set in stone, it's up to the creditors then to prove the amounts owed to them... if the total debts change by something like 10% then the IVA can fail as it will be presumed that the IP has not done their homework properly in investigating, drafting and nominating the IVA.

Debtinfo - I think the 8% interest added annually is actually only calculated if a situation would arise where you pay off the total outstanding debt in full... it's not added in the normal circumstances of an IVA.