IVA advice

MoneyMiser

Hi all,

Not posted on here in such a long time! Hope someone can help.

I have a friend who is having some problems with Harrington Brookes and their IVA agreement.

The agreement was due to finish this August after paying into it for five years. Now they are saying it could go on for another three years!

The reasons they have given are four companies have claimed the money, the remaining balance will be put to one side for the other companies to claim. Theyhave also reclaimed PPI on her behalf without her knowing to the sum of £4600 which I assume will add onto the balance.

Finally she has been told its the managers discretion as to whether he will complete the IVA but it is doubtful as they won't make much money on the agreement even though they have added on fees of over £6k!

Sorry I know the details are sketchy at best, but if anyone has any advice or had dealings with this company, any help would be appreciated. I am meeting her today to get some more details to see where I can help.

Thanks,

MM

Tixy

You do really need some more information from her to make sense of this, as at the moment it does not make sense.

She also needs to find out on what authority they made a PPI reclaim on her behalf - did she ever authorise or sign anything that allowed them to do this.
I assume that the amount reclaimed has been netted off against her her outstanding debt to her creditors, but that the IVA company are charging her for making the reclaim?
Or is the PPI reclaimed less than what the IVA company have charged for making the reclaim - and they are charging her the difference.
This link may be worth reading http://moneyaware.co.uk/2012/03/claiming-ppi-could-be-a-scandal-for-those-in-debt/

sourcrates

Hi,
Your friend needs to look at the small print in the terms and conditions attached to there IVA, the normal period is 5 years, however, creditors can ask you to re-mortgage in year 5, if you own a property, in order to release more money for them, if they don't own a house, then the term can be extended up to another 3 years, its at the creditors/IP`s discretion, so yes unfortunately this is correct, the only way out of this is if they can come up with a lump sum of cash, or there circumstances change, and they cant afford the payments anymore, then they could ask creditors to take "payments to date" as a full and final settlement, otherwise they will just have to stick it out im afraid !!!