Claiming in a DMP/IVA (merged)

Blindhat123

Hi all
i am on a repayment plan to clear my depts and i was wondering if i should reclaim my bank charges as this is how i got into this mess in the first place
new member please help ...

Edinburghlass_2

MSE_Martin wrote: »

The following is the view of the top lot at the CCCS

Martin

"The answer is not very clear I'm afraid because there are too many variables.

Not all lenders freeze interest, so there may be no impact. For those that do, it may affect their decision whether to continue the freeze, particularly if they have had to fork out a lot in charge refunds.

I'm not aware that any have very specific policies regarding how they will treat DMP clients who request refunds. I'm certainly not aware of any clients who have suffered as a result of reclaiming their charges.

If a bank overdraft is comprised almost entirely of charges that were then refunded, that would essentially wipe one of the debts out altogether and remove it from the plan.We would expect the client to use the money towards clearance of the debts, unfortunately, as we are not actively involved in the process (i.e. we don't do it for them) we don't know to what extent they are successful and how much they get - we're reliant on their honesty!)"

Reply from CCCS to Martin regarding reclaiming with an IVA/DMP. Basically, yes you can put in a claim but be aware that the bank will likely put any monies reclaimed towards any debt held by the bank.

Apathyawakened

k1mmie wrote: »

I have had dealings with Brachers with an old debt and they are b*****ds. They are bullys! They put a charge on our property and we asked them if we tried to sell would they accept a reduced settlement to which they told us we had 30 days (get real).

You can take this to court to have the charge set aside using the arguement that teh debt to which it refers is in dispute (being the debt to which you have claimed charges back). The fact it is below the amount totally due does not matter. Also, make a contribution towards the debt on a regular basis - £10 a month is enough - and the court will look favourably on your position when setting aside the charge. Only problem is you may be out of time on setting aside. The normal is 30 days from the judgement but some courts are allowing up to 3 months. Try and see what happens. You have nothing to lose. Call the court and they will assist with what can be done and what forms to complete.

Apathyawakened

Point to note on all IVAs etc. (including bankruptcy). The debt that is forgone will not be reclaimable from the original party if extra funds are available after the agreement has been made. For example, if you won the lottery you would still only have to pay back the IVA agreed amounts. The same applies with bank charges and debts with one important exception. A bank can come after the balance of the debt when a property is involved in 2 ways -
a) if it feels it has been misled about the value of the property and you sell for higher than declared when setting the IVA; or
b) the bank has offloaded the debt through its insurance eg PPI. In this instance the insurers are entitled to chase the debt to recover against their payments. It is the same as if you lose a household item and later find it but in the meantime a claim has been settled for the value. In this instance the insurers can come back and ask for a refund of the claim.

Point here is be very sure about what you have agreed with whom. If unsure check with the people managing the IVA and with the citizens advice bureau as the impartial support.

clanger69

Apathyawakened wrote: »

Point to note on all IVAs etc. (including bankruptcy). The debt that is forgone will not be reclaimable from the original party if extra funds are available after the agreement has been made. For example, if you won the lottery you would still only have to pay back the IVA agreed amounts. The same applies with bank charges and debts with one important exception. A bank can come after the balance of the debt when a property is involved in 2 ways -
a) if it feels it has been misled about the value of the property and you sell for higher than declared when setting the IVA; or
b) the bank has offloaded the debt through its insurance eg PPI. In this instance the insurers are entitled to chase the debt to recover against their payments. It is the same as if you lose a household item and later find it but in the meantime a claim has been settled for the value. In this instance the insurers can come back and ask for a refund of the claim.

Point here is be very sure about what you have agreed with whom. If unsure check with the people managing the IVA and with the citizens advice bureau as the impartial support.

Hi Apathy

Do you know if this is the case with all IVA's as my provider (Clearstart) claim that it will go towards the part of the IVA that has been technically wrote off?

I think they are trying to pull the wool over my eyes as i've read their terms and conditions and everything refers to 'the IVA' which i presume is the agreed amount to be repaid!!!

Do you know of any legal advise on the internet surrounding this situation?

Thanks in advance

Apathyawakened

clanger69 wrote: »

Hi Apathy

Do you know if this is the case with all IVA's as my provider (Clearstart) claim that it will go towards the part of the IVA that has been technically wrote off?

I think they are trying to pull the wool over my eyes as i've read their terms and conditions and everything refers to 'the IVA' which i presume is the agreed amount to be repaid!!!

Do you know of any legal advise on the internet surrounding this situation?

Thanks in advance

Hi Clanger
It sounds like they either wrote a rubbish IVA or are pulling the wool. You need to look at your IVA and see what the small print says about the debt written off, in particular is this what was agreed with the other parties and which they signed up to.
I have never seen anything on the internet but know that Citizens Advice are very good with this.
Maybe you can ask Clearstart to show where specifically it says the excess can go against the "written off debt".
Cheers

clanger69

Apathyawakened wrote: »

Hi Clanger
It sounds like they either wrote a rubbish IVA or are pulling the wool. You need to look at your IVA and see what the small print says about the debt written off, in particular is this what was agreed with the other parties and which they signed up to.
I have never seen anything on the internet but know that Citizens Advice are very good with this.
Maybe you can ask Clearstart to show where specifically it says the excess can go against the "written off debt".
Cheers

Hi Aparthy.

Thanks for your reply..........will call them tomorrow and see what they say.

Have been through all the small print and there's no reference to this situation. The only section referring to any 'windfall' states that any windfall over £500 must be payable into the IVA. When i questioned this with my IVA supervisor i was told that if i claimed a refund of my cc charges and got back £505 then ALL of this would go towards the IVA part that was 'wrote-off'. When i stated that it says anything OVER £500 he started to splutter his words...........think the wool being pulled over ones eyes is highly likely!!

Will let you know how i get on, and others on this forum

dev92

Hi there I am new to this website/forum, and need some advice, i completed a full & final settlement in Sept 2007 for an IVA and have received my completion certificate from the court, however I decided to go ahead and reclaim credit card fees, first direct paid £160 cheque as the account is now closed, capital one offered me £176 but deducted the amount from a remaining balance of a closed account despite them having a f & f from me on the account in Sept, and also Halifax have offered me £276 but with the same conditions as Capital one, can these banks do this or is there a way around it any ideas!!!!

debrag

this has helped me make up my mind about claiming back money.
I have 6 creditors - 5 cc's 1 bank so think I will do them in stages.

Can someone send my the template letters? for some reason I can't save or open them from the article

dlb

Hi everyone.
I just thought i would tell you my story..not long i promise!
I am on a DMP and have been for almost 2yrs now.
I reclaimed my bank charges 6 months into my DMP (Before the test case) never had a problem, i didnt even inform my Debt Managment company until after i had got the refund (over £1200), i also reclaimed from 2 credit cards and 1 store card, all money reclaimed was knocked off the ballances on each account, making me a little closer to acheiving my Debt free goal.
Good luck to anyone thinking of reclaiming, i know im so pleased i did.