Debt Free Direct Over Calculate Income!!

MUMZ2BEE

:mad:

Been in my IVA now for 3 years with Debt Free Direct.

This year however, there has been a problem.

I receive per calender month £888 in benefits.

This include DLA and cont based support group ESA.

However when DFD calculated my income they claim I physically receive £967!!

But when you look at the bank statement the monies go into, it add
up to £888!!

They have up my payments from £130 to £175; I am worried I will struggle to pay this amount of money each month!!

I've had to complain to the Financial Ombudsman Service today over the matter, I dont like complainang as a rule but DFD eare not listening to me!!

I have offered to increase from £130 to £150 and that £150 is all I can afford.

DFD has not replied to my email.

I am very frustrated; I thought an IVA was supposed to be affordable!!

Feeling angry!!

bloolagoon

Your benefits are weekly not monthly, your £888 is a 4 week figure not a monthly figure.

longtermplanner

Bad news I am afriad, your complaint to the Financial Ombudsman is very likely to be returned as not within the FO's jurisdiction.

As I understand it, anything an IVA does in the role of being an IVA is excluded from the Financial Conduct Authority regulation and the FO is not the relevant ombudsman. Instead you will have to complain to the body which authorises your IP.

There is more about how to complain about an IP here: http://debtcamel.co.uk/complaint-iva/

MUMZ2BEE

longtermplanner wrote: »

Bad news I am afriad, your complaint to the Financial Ombudsman is very likely to be returned as not within the FO's jurisdiction.

As I understand it, anything an IVA does in the role of being an IVA is excluded from the Financial Conduct Authority regulation and the FO is not the relevant ombudsman. Instead you will have to complain to the body which authorises your IP.

There is more about how to complain about an IP here: http://debtcamel.co.uk/complaint-iva/

What can I do with regards to the fact my IVA is not a standard 5 year one?

They increase it to 6 years and they said yesterday that they might increase the terms further.

I dont want to keep paying this debt off for years on end with no insight of it ever finishing!?

As I am a vulnerable adult I feel that my creditors are holding me to ransom over a small income and I feel they are being unreasonable!!

MUMZ2BEE

bloolagoon wrote: »

Your benefits are weekly not monthly, your £888 is a 4 week figure not a monthly figure.

You are incorrect in this matter.

When going through my bank statement for the month of may, adding up the benefit payments being received for that month does indeed total to £888.

dzug1

MUMZ2BEE wrote: »

You are incorrect in this matter.

When going through my bank statement for the month of may, adding up the benefit payments being received for that month does indeed total to £888.

In May yes - but what about other months? Is there an occasional month with a different figure?

MUMZ2BEE

dzug1 wrote: »

In May yes - but what about other months? Is there an occasional month with a different figure?

No most months remain the same income.

I might have to have the IVA looked at anyways because I feel that its unreasonable to increase the terms from 5 years to 6 years.

I dont think its right they are making me paying for longer then is normal.

dzug1

MUMZ2BEE wrote: »

No most months remain the same income.

.

But some are different??

UpToMyNeckInIt

It would help if you told us a little more detail, before anyone can advise categorically.

If you are a homeowner, and unable to release equity in month 54, it is quite normal for the iva to go on for 6years.

The only other time an iva goes beyond the usual 5 years is if you agreed a longer term from the outset, of it was imposed upon you by one of your creditors (HMRC & NRAM for example), or if you have in some way under paid: payment breaks, miscalculation of income etc.

Are you correctly reviewing your expenditure? Doing so may help reduce your payment.

Of course it is equally possible that you are dealing with an underpaid, under qualified case worker who couldn't care less. Iva companies are littered with these I'm afraid, and sometimes writing directly to your IP may help.

Is your income made up solely of state benefits? If so and if you are not a homeowner, why did you enter an iva, rather than go bankrupt? My first thought is that going BR may be a quicker and cheaper solution. Whilst it would be a Shane to terminate the iva this far in, if you can stand the thought of another 6 years of a trashed credit rating, it may still be.

Just a few things to consider, and good luck.

wba31

MUMZ2BEE wrote: »

No most months remain the same income.

You need to look at your benefit award letter and calculate it this way instead. Or use 2 months bank statements, and see if payments go in once every 4 weeks, or on the same date each month

longtermplanner

MUMZ2BEE wrote: »

What can I do with regards to the fact my IVA is not a standard 5 year one?

They increase it to 6 years and they said yesterday that they might increase the terms further.

I dont want to keep paying this debt off for years on end with no insight of it ever finishing!?

As I am a vulnerable adult I feel that my creditors are holding me to ransom over a small income and I feel they are being unreasonable!!

You are going to have to give us a lot more information about this if you want much by way of useful comments. If you don't want to, then I suggest going to your local CAB.

As UTMNII says, 5 years is normally extended to six if you cant release equity in the last year, but as you are in year 3, this shoulnd't apply to you.

Northern Rock and a few other creditors often insist on 6 years from the start.

Why is your IP saying the term is likely to increase? If you aren't sure, ask them in writing to explain this.