Dfd rip-off

Ballu1952

in 2010 I found myself in a position where I no longer could cover all my credit card payments, after my bank charged £147 & subsequently several £79 charges for my exceeding my overdraft by less than £100. After not paying some of my credit cards debts, the endless and persistant phone calls started, which were constant and not just at home, but also at work, which I found very embarressing. Feeling in a very imotional and and desperate frame of mind, I went in search of help. I came across a website that promised instant help help to stop the calls and a budgeted plan to repay my creditors. Since my debts exceeded my yearly income and I wanted to protect my home and job, i agreed to enter an IVA. I was advised that I would be debt free within 5 years. The payments started in February 2011 and I have just had a statement from DFD that after paying £210 per month I have only accumulated £499.49 - after paying £7140 & PPI collected £809. All my payments so far have been taken in unsubstanciated fees! I am devastated, insenced and feel used and conned! Does anyone have had similar experiences with DFD andd what can I do to remedy this terrible situation.

UpToMyNeckInIt

Hi Ballu,

You really are only giving us part of the picture here. How much was your original debt for?

Get out your IVA paperwork, and take the opportunity to read it more carefully: YOU signed and agreed to it, and the fees will (or should be) be clearly outlined in there, along with how/when dividends are distributed amongst your creditors.

For starters, 15% of any additional realisations (eg: your PPI), will go to the IP. They also probably used EIF to claim on their behalf, and their cut is 33% + VAT or thereabouts.

Most IVA firms take the bulk of their fees in the first 2-Years of the IVA, with creditor distributions increasing in the final years, up to and often beyond your promised dividend.

Have you queried this with your IP? DFD are a big firm, so I doubt they would be doing anything dodgy.

Besides, you should not worry, the fees were also agreed by your creditors, and come Feb. 2016, you will be debt free.

They only become relevant if you fail/terminate the IVA. In which case you are back to square one in terms of your debt (less any payments made), but you IP will invoice you for his fee, and you may get clobbered with stat. interest as well.

In short, there is nothing you can realistically do aside from complaint to your IP's regulatory body, if they fail to explain their fees to your satisfaction.