IVA assistance please

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I have a friend who is 70 and he entered into an IVA with a Company called "Simpledebtsolutions" 2 years ago with debts amounting to £14,000. He has paid £236-00 a month for those 2 years ( never missed a payment ) They have taken a one off payment of £1080-00 and administrative fees of £488-00 per annum. Recently he had PPI repayments back to him of £20,000 which all were taken by "Simpledebtsolutions". In total this makes £25,664. he has paid. I advised him to talk to simpledebtsolutions on the basis that he has now paid more than what was required ( with the PPI repayments) and they said they would send out an up-to-date statement in 7 days. Having waited and not received the statement he phoned again to be told they would get round to it in the new year, but he MUST keep paying his monthly £236-00.

1)...are Simpledebtsolutions any good ?
2)...surely an up-to-date statement only takes a press of a button ?
3)....I have seen his paperwork and IMO he is owed thousands back now ?...but I`m not familiar with this process.
4)..It seems to me that Simpledebtsolutions are very inefficient and holding on to his money. Can he charge them interest if this is shown to be true ?

Any help that I can give my friend, who is not really street wise in these matters, I would like to give. I know it`s worrying and confusing him.

Your advice and knowledge on this matter would be really appreciated.

Thanks in anticipation :)

Comments

  • Depth_Charge
    Depth_Charge Posts: 970 Forumite
    First Post
    edited 18 December 2012 at 9:39PM
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    I have a friend who is 70 and he entered into an IVA with a Company called "Simpledebtsolutions" 2 years ago with debts amounting to £14,000. He has paid £236-00 a month for those 2 years ( never missed a payment ) They have taken a one off payment of £1080-00 and administrative fees of £488-00 per annum. Recently he had PPI repayments back to him of £20,000 which all were taken by "Simpledebtsolutions". In total this makes £25,664. he has paid. I advised him to talk to simpledebtsolutions on the basis that he has now paid more than what was required ( with the PPI repayments) and they said they would send out an up-to-date statement in 7 days. Having waited and not received the statement he phoned again to be told they would get round to it in the new year, but he MUST keep paying his monthly £236-00.

    1)...are Simpledebtsolutions any good ?
    2)...surely an up-to-date statement only takes a press of a button ?
    3)....I have seen his paperwork and IMO he is owed thousands back now ?...but I`m not familiar with this process.
    4)..It seems to me that Simpledebtsolutions are very inefficient and holding on to his money. Can he charge them interest if this is shown to be true ?

    Any help that I can give my friend, who is not really street wise in these matters, I would like to give. I know it`s worrying and confusing him.

    Your advice and knowledge on this matter would be really appreciated.

    Thanks in anticipation :)

    Hi

    Just going on what you have put so far

    Was £14000 the full original debt or the amount to be paid into the IVA?

    Was there a claims company involved with the PPI and if so how much did they 'earn' out of the £20,000 or is this net of any commission?

    Im asking this first as the commission / fees with some claims companies can be 30% plus taking a substantial chunk out of the PPI and in turn out of the IVA so to speak

    The full debt of £14000 or the original debt if this is the case plus fees would have to most likely be cleared to conclude the IVA.

    Along with the above have another good read through the IVA proposals, check out the fee structure / total fees, do a little further maths as if there has been a chunk taken by a PPI claims company then he might not have quite cleared the IVA at £14000 and likely not if the original amount was higher.

    Might be worth trying a written request for a statement sent by recorded delivery bearing in mind there is a small cost for this.

    Come back to us if you can
  • spiritsfree
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    Thanks for coming back so quickly.

    You are right...the amount of £14,000 was the original debt to be paid into the IVA...and the PPI was additional (ONLY £14,000 ) after the claims company took their 30%.
    The fee structure was a one off payment of £1080-00 and annual fees of £488. I made that 3 years( as he has entered into the 3rd year now) X £488 = £1464-00 + £1080-00 = £2544-00 in fees.

    He has paid 27 months @ £236-00 = £6372=00 and has had all of his reclaimed PPI paid to the IVA company of £14,000-00.

    To me the total paid is £20,372, minus the fees of £2,544 = £17,828 ????

    I hope you can follow that....and sorry for the incorrect figures in the first place.

    To me he is owed money...or am I wrong ?

    Thanks again for your help !!!
  • Depth_Charge
    Depth_Charge Posts: 970 Forumite
    First Post
    edited 19 December 2012 at 8:20PM
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    Thanks for coming back so quickly.

    You are right...the amount of £14,000 was the original debt to be paid into the IVA...and the PPI was additional (ONLY £14,000 ) after the claims company took their 30%.
    The fee structure was a one off payment of £1080-00 and annual fees of £488. I made that 3 years( as he has entered into the 3rd year now) X £488 = £1464-00 + £1080-00 = £2544-00 in fees.

    He has paid 27 months @ £236-00 = £6372=00 and has had all of his reclaimed PPI paid to the IVA company of £14,000-00.

    To me the total paid is £20,372, minus the fees of £2,544 = £17,828 ????

    I hope you can follow that....and sorry for the incorrect figures in the first place.

    To me he is owed money...or am I wrong ?

    Thanks again for your help !!!

    Hi

    Thanks for the reply

    Sorry to ask again, Im not quite clear, its probably me, but are you saying that his total debts prior to entering the IVA were £14000?

    Looks like the claims company have had their chunk, how this can be classed as being in the best interests of the person in the IVA is beyond me.

    Basically if the total debt was £14000 plus the full fees and the monies paid in are over and above this figure then questions need asking - things can take time in IVAs but if the arrangement is cleared then it seems strange that they are still requesting payments.

    Maybe try contacting the IVA company by telephone while your friend is present (with his permission) as there may be a crossed wire or two so to speak or a recorded delivery letter if this does not work etc.

    There will be a complaints procedure if necessary and a regulatory body, but other avenues as suggested would really need to be followed first.

    Im only going on what you have put and have not seen the IVA agreement so Im very limited so only take this post as a guide.

    Keep us informed if you can, Im interested in the outcome.

    Best wishes
  • spiritsfree
    Options
    I`ll keep you informed...and thanks for your help.

    I understand it won`t be until after the new year now.

    Again many thanks......and have a good Xmas !!
  • Depth_Charge
    Options
    I`ll keep you informed...and thanks for your help.

    I understand it won`t be until after the new year now.

    Again many thanks......and have a good Xmas !!

    Hi

    You are welcome, have a good xmas too

    I will probably start mine in the club tommorrow at 7.00pm with a pint of guinness, from then on is anyones guess:)
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