I'd like peoples opinion on my poor treatment by IVA company

Legacy_user

Hi Everyone,

I dare say by writing this my IVA company will be able to identify me should they so wish.

Over the last few months (due to flogging myself into an early grave) I have come into several thousand pounds of overtime. I am now in a position whereby the difference between what I owed on my debts and what I pay back in the IVA is more than covered.

In other words I could (and am happy) to pay back 100% of the money.

However, they are now potentially claiming that should I be in a position to pay extra, it will not go into my IVA, but to overpay the IVA in terms of interest rather than finish my IVA early (by massive monthly overpaying from a third person in my life and huge amounts of overtime)

They mentioned they may well be seeking interest over the term of the IVA above and this amounts to about 200% of what was agreed at IVA outset. This could effectively double the amount I originally agreed to.

I'm very angry as you can understand, but do I really have any options.

FoggyBrain_2

Hi -- how far into your IVA are you? I am assuming that you have been happily paying over the 50% shares ( or 50% after the 10% deduction, depending on your terms) of the overtime and squirelling away the rest.

Any voluntary overpayments from the third party, if made on a monthly basis, don't carry much weight, apart from reducing the balance. Too late now, but it would have been better if your friend held onto the money, month by month, until there was a tidy sum, which, when added to the share of overtime you have saved up, could have made a decent full and final lump sum offer.

Hopefully Charco will see this and reply.

Have a look at your proposal to see what ( if anything) it says about interest. If this is charged it is normally at 8% . ( My proposal specifically states no interest will accrue).

Mr_Moosey

I was in this position. I DEMANDED to speak with the supervisor (do not take no for an answer) - that is the individual who signs all the legal documents. My "handler" was next to useless and full of waffle/misinformation. The supervisor was brilliant and with his help, I paid about 56% of my debt and I got to keep the rest! I put in a F&F and it was accepted. I am now debt free, but my credit rating will stink for another 4.5 years (I was in my IVA for 1.5 years) and I now have my Certifiacte of Completion.:D

FoggyBrain_2

Totally agree with Mr Moosey. Some office staff ( I like the term "handler" -- sums it up nicely) actually know very little and you have the right to speak to the IP directly. I am very lucky with mine as they all seem to know what they are doing and are very good ... but some, as we know, .... aren't !

SunshineBear

What was the origional amount owed in comparison to what was likely to be paid during the IVA?

While we 'agree' on an amount for the 5 years i assume that if ANY extra money materialises then that should go toward the the debt. You still owe the whole amount its just that at the end of the 5 years they write off the balance.

Charco_2

There are a number of things to note here from what you have written - i'm basing my answer on the information here although further info would maybe have helped.

Firstly, you might find that if your IVA company is treating you so badly then they are treating all their customers similarly badly - they wont be able to identify you at all!

Secondly, you have come into several thousand £s of overtime. Check the terms in your IVA but something like the 1st 10% is yours and the rest is split 50/50 with your IVA would be normal - have you played by these rules? Have you already given the IVA it's fair share? The rest is yours regardless of the amounts and you can do what you wish with it... even offer it to end your IVA early if your creditors agree.

Remember, when an IVA is agreed, it is because you have given (hopefully an accurate) indication of the amount you will be able to contribute towards your outstanding debts. The amount you agree to pay is not set in stone however. You should pay back as much as you can afford into the IVA over the term - so if you can afford more you should pay more. (Not withstanding the overtime arrangement)

However, there is a limit to how much more you should pay! You should actually owe the amounts you are being asked to pay over. If you can afford to pay back the debts in full with interest then unfortunately you shuld pay back the debts in full plus interest... but your share of the overtime should not be considered in this, that is yours and not to be reclaimed by your IP! If you wish to attempt to offer it as a full and final then that is your choice and there should be nothing stopping you.

I would demand to speak to your IP - if you are refused this opportunity then ask for the details of their regulators... that will change their tune!

As long as you have paid in everything you have agreed to pay in in your original IVA proposal then you are playing by the rules, those rules cannot change now simply because your IVA company smell money!

(Does all this make sense? I can try to clarify anything further if needs be)

Who is the company BTW?