who monitors the IVA companies and how can I complain?

losethedebtlou

I am just in the process of finishing my IVA by an early settlement. However, after recieveing the paperwork from the company, Ideal Debt Solutions, I realise that I have been royally ripped off!

Originally I owed 13000. After speaking to the man on the phone he advised me that I would need to owe 14000 in order to take out the IVA so he suggested he 'bump up' my overdraft by 1000 to guarantee my acceptance onto the programme (!) what a joke, I didnt realise at the time that I was clearly being scammed! I have no real proof that this happened, however I suppose I could obtain all my old statements from my creditors to prove how much debt I actually had.

Secondly, I have just recieved the paperwork and so far I have paid a total of 16000 into the IVA!! I still have a year to go (if I was not settling) so how can they justify this when I never owed this much in the first place! ON TOP of the 16000 in the bank for the creditors is the fees that I paid the company!! Altogether I have paid them around 18000!! After only owing 13000 in the first place!

I do not plan on letting them get away with this. How can I complain about them and ensure they cannot do this to other people?
Is it worth looking for a lawyer?

Any help would be appreciated

Charco_2

No need for a lawyer, simply contact the company and ask them for the details of their regulators.

Insolvency is a HIGHLY regulated industry, and companies receive frequent visits every year to make sure they comply and are acting appropriately... you should contact their regulators and raise your complaint - which will be a signifcant bnlow to the company.

You CAN end up paying back more than you originally owed - it's a strange quirk I know! But it unlikely to happen that often (obviously it's happened 100% of the time for you unfortunately).

It simply depends on your solvency at the time you set up the IVA. Were you able to afford your monthly repayments as they fell due four years ago when you started your IVA? If you were seeking help then possibly not. It's likely you were unable to afford the monthly repayments on £14k of debt the way it was structured with your creditors at the time but you have been able to afford your monthly repayments as changed in the IVA. Remember, you owed £13k PLUS INTEREST before the IVA was set up.

However I would definitely report "bumping up" your debts to a suitable figure - CON!

It is often mooted that you need to have debts of £15k to enter into an IVA... this is not true! It's a guideline or starting point, not a legal requirement. Would you/should you be denied a debt solution simply because you've only got £13k debt? Should you recklessly be encouraged to rack up that all important extra £2,000 of debt?

There is a grey area there where it should be seriously considered whether an IVA is your best option if you cannot afford to maintain your debts of £10,000 or £8,000... The choice to propose an IVA is always the debtors but the IP would probably be losing money on an IVA under £12,000 or £10,000 - it would actually cost more in administration to run than the permitted fees would be.

So contact your IP and ask for the contact details of their regulatory bodIES - there will likely be more than one (but not necessarily)! and raise your compalint about the BUMPING UP with them.