Debt Free Direct Over Calculate Income!!

Giggles_Fairy

As other posters have said - you ARE being paid £962 on average each month - you need to look at your income for the year and divide it by 12 as you are getting a benefit fortnightly and a benefit weekly.

Have you checked the expenditure items you have listed as I suggested? If you are working these out as a weekly cost x 4 then you are miscalculating your expenditures which is why you feel you don't have as much spare money as DFD are saying.

Unfortuantely as you are paid benefits fortnightly/weekly you do need to be more careful with your budgeting in the months you get additional payments, as anotehr poster has suggested. But this is not DFD's fault.

You need to decide if you want to stay on the IVA or not. If not, then go for a DRO now. If yes then you need to help resolve the situation - FOS will agree with the income as it is worked out correctly!

If you want help to stay on the IVA post the list of expenditures you have listed on your I&E and we can help you see if this is reasonable and correct.

National_Debtline

Hello there,

I'm sorry if this has already been mentioned in the thread and I've missed it but money that is paid as Disability Living Allowance is generally disregarded when it comes to calculating income. Of course you can choose to include it if you so wish - but it *is* supposed to used to cover health-related costs rather than towards paying creditors. If you factor out the DLA perhaps you'll meet the DRO criteria.

I'm pleased that you're going to seek a second opinion with our good friends the CAB.

Best wishes,

David @ National Debtline.

MUMZ2BEE

National_Debtline wrote: »

Hello there,

I'm sorry if this has already been mentioned in the thread and I've missed it but money that is paid as Disability Living Allowance is generally disregarded when it comes to calculating income. Of course you can choose to include it if you so wish - but it *is* supposed to used to cover health-related costs rather than towards paying creditors. If you factor out the DLA perhaps you'll meet the DRO criteria.

I'm pleased that you're going to seek a second opinion with our good friends the CAB.

Best wishes,

David @ National Debtline.

Thank you very much for this information.

Is it worth me in writing to DFD regarding the fact that they should not have calculated my DLA is income and that they should not be giving this to my creditors?

Is it worth me asking them to remove my DLA?

If they dont and are still adamant its is income what else can I do?

Otherwise I will have to ask the CAB to help me with a DRO.

My total overal debt is just over £14K.

Thanks for the help and didnt know that DLA should be disregarded.

longtermplanner

The problem is that they are allowed to use the DLA as income, it just isn't good practice Or if it is included, then there should have been additional cost lines in there to reflect the extra costs you will incur because of your health problems.

If you take the DLA income out, the chances are that there won't be enough to offer your creditors, so the IVA would never have been approved. DFD can't just take it out now, it would have to go to another vote of your creditors.

You could reasonably argue that DFD mis-sold your this IVA; that they didn't take account of your best interests and that they should have suggested you should look at a DRO.

I think you should go and talk to CAB about what a realistic income & expenditure would be for you. And whether you would meet the DRO criteria (I am not clear if your 'total debt' figure of £14000 includes DFD's fees?). And whether you have a case for complaining about DFD.

MUMZ2BEE

longtermplanner wrote: »

The problem is that they are allowed to use the DLA as income, it just isn't good practice Or if it is included, then there should have been additional cost lines in there to reflect the extra costs you will incur because of your health problems.

If you take the DLA income out, the chances are that there won't be enough to offer your creditors, so the IVA would never have been approved. DFD can't just take it out now, it would have to go to another vote of your creditors.

You could reasonably argue that DFD mis-sold your this IVA; that they didn't take account of your best interests and that they should have suggested you should look at a DRO.

I think you should go and talk to CAB about what a realistic income & expenditure would be for you. And whether you would meet the DRO criteria (I am not clear if your 'total debt' figure of £14000 includes DFD's fees?). And whether you have a case for complaining about DFD.

I am writing a letter to one of my main creditors Halifax tomorrow.

I am going to argue about DFD using my DLA is income.

I am going to ask them that as I cannot realistically pay the money back they lent me and that they have to admit irresponsible lending to write the debt off.

I will argue that if they dont agree to write the debt off a DRO will be sought.

I am also complaining to DFD about using my DLA as income, and complaining about the IVA being missold to me when I could have sought a DRO.

Thanks for the advice xx

Gaz83

I suspect OP's reluctance to clarify payment dates confirms that she does indeed get paid either weekly, fortnightly or monthly and thus her income does average out to be the £967 figure every calendar month, and she is reluctant to admit this.

tomtontom

Gaz83 wrote: »

I suspect OP's reluctance to clarify payment dates confirms that she does indeed get paid either weekly, fortnightly or monthly and thus her income does average out to be the £967 figure every calendar month, and she is reluctant to admit this.

Indeed, and it could be cleared up if she posted the dates of the payments received. I am not are that anyone receives monthly payments.

OP, do you use your DLA for disability related expenses - physio, therapy etc? If so, and if you can evidence these expenses, this will make it easier to get the amount excluded from your income assessment.

MUMZ2BEE

Gaz83 wrote: »

I suspect OP's reluctance to clarify payment dates confirms that she does indeed get paid either weekly, fortnightly or monthly and thus her income does average out to be the £967 figure every calendar month, and she is reluctant to admit this.

On checking my bank statement I get 4 payments of DLA in a month totaling to £444, then I get 2 payments in a month of ESA which works out as £444 a month.

tomtontom

MUMZ2BEE wrote: »

On checking my bank statement I get 4 payments of DLA in a month totaling to £444, then I get 2 payments in a month of ESA which works out as £444 a month.

And each payment is seven days apart, yes?

Gaz83

MUMZ2BEE wrote: »

On checking my bank statement I get 4 payments of DLA in a month totaling to £444, then I get 2 payments in a month of ESA which works out as £444 a month.

Could you post up the dates (and amounts) of your last four payments of DLA and last two payments of ESA, please?