Debt Free Direct Rip Off Merchants!!

SPELLKASTER

Been in an IVA for 2 years with this firm and I had to cancel back in July 2014 because of soaring payments and the fact that they had taken my Disability Living Allowance as income.

Reported them to the Insolvency Practitioners for their behaviour and for the IVA failing beyond my control.

Today I got a Variation Report through the post and I am furious and appalled at this firm.

I have paid in a total of £2790.

Debt Free Direct's fees will wipe out what I have been paying.

Basically they have only sent across £151 towards my creditors.

I am appalled at this and feel conned.

They have failed to put in the Variation Report the reason for the IVA failing was because of the proposed £45 a month increase when they knew I was in receipt of benefits and had no assets.

They are also fully aware I need a failure certificate to obtain a Debt Relief Order which this is not mentioned in the report.

I am shocked that no dent in my debts has been made by this firm!!

Pixie5740

Is this a debt service you have to pay for?

Try contacting one of the debt charities such as Step Change or Christians Against Poverty (you don't have to be a Christian).

SPELLKASTER

I am just so angry that their fees haven taken what I have been paying!!

I'd have thought that as I was paying £130 a month more would have been paid towards the overall level of debt!!

As the IVA failed on their part by wanting more off me I simply couldn't pay I was hoping they would agree to remove their fees.

longtermplanner

Basically they have only sent across £151 towards my creditors.

That sounds like a fairly normal level of IVA fees I am afraid. Pixie5740 there are no ways to get a free IVA, even StepChange charge.

They have failed to put in the Variation Report the reason for the IVA failing was because of the proposed £45 a month increase when they knew I was in receipt of benefits and had no assets.

They are also fully aware I need a failure certificate to obtain a Debt Relief Order which this is not mentioned in the report.

There is no reason for them to report either of these to your creditors as they don't make a difference to your IVA failing.

I am shocked that no dent in my debts has been made by this firm!!

There would have been no dent with any other firm either. This is the nature of low monthly payment IVAs I am afraid. Unless they complete, the creditors get little or nothing.

I am appalled at this and feel conned.

You certainly should have been advised oiginally that a DRO was a possible option. In that sense your IVA may have been mis-sold.

But you may as well move on from this, get your DRO and look forward to a future without debt.

SPELLKASTER

longtermplanner wrote: »

That sounds like a fairly normal level of IVA fees I am afraid. Pixie5740 there are no ways to get a free IVA, even StepChange charge.

There is no reason for them to report either of these to your creditors as they don't make a difference to your IVA failing.

There would have been no dent with any other firm either. This is the nature of low monthly payment IVAs I am afraid. Unless they complete, the creditors get little or nothing.

You certainly should have been advised oiginally that a DRO was a possible option. In that sense your IVA may have been mis-sold.

But you may as well move on from this, get your DRO and look forward to a future without debt.

As soon as I get the failure certificate, National Debtline said I was eligible for a DRO as they disregard DLA whereas in an IVA they don't.

I suppose its another lesson learned; I certainly wont be getting any more credit after this, I cant anyway as thanks to the IVA my credit rating is now zero!!

Its taught me a lesson to be a bit more careful with money in the future and to save for things instead of borrowing!!

Hopefuly I will be debt free end of 2015 with a DRO.

I didn't know in the first place I was eligible but there you go DFD did not advise me properly.

SPELLKASTER

I've just been told by DFD that a meeting will be on the 16 December to discuss closing the IVA down.

They said that they reckon I should be getting the failure certificate end of January/early February.

I said that was acceptable as it is christmas period and new year.

They said that they will chase for ppi after the iva has closed down as they dont want me to wait!!

They said that there is around £369 going across to creditors, this means that the debt should technically drop from £11,161 to £10,756.

They said I could write to my creditors and make them aware that there is no more money available as my benefits are under review next year which I could loose.

I can make my creditors aware then that a DRO is being applied for and to ask them to withhold adding interest onto the debt.

Is this worth a try?

SPELLKASTER

I've just had a phone call from the Insolvency Practitioners.

The bad news is they cannot help with getting the £2790 I've been paying into this IVA, so I have been ripped off.:mad:

The good news is that they will investigate why the IVA failed, and the circumstances of why the firm wanted a £45 increase in payments which I couldn't afford.

Anyone have any ideas on whom I can go to regarding getting this money back?

The Financial Ombudsman Service wont dealt with this as I have already asked them as IVA's dont come under their durisdiction.

fatbelly

I don't think a complaint is going to get you anywhere. Bear in mind that a lump sum received after you have a DRO could cause a problem.

Concentrate on getting your debts cleared through a DRO.

Now I have had one revoked due to a ppi reclaim during the moratorium. So what can you tell us about yours? Any idea how much it will be?

DorisTrousers

It shouldn't matter, as any PPI is an asset of the IVA estate, and will therefore carry no danger of causing a DRO revocation as SPELLKASTER shouldn't see any payout from it.

SPELLKASTER

I have not got any ppi on any of my debts, DFD are fully aware of this and have agreed to close the IVA down.

I should receive the failure certificate towards end of February.

I am applying for a DRO through National Debtline and have already been assessed as acceptable when I get this but I need to ask how many months in bank statements do I need to show - is it 2 months!?

Many thanks.

fatbelly

SPELLKASTER wrote: »

I have not got any ppi on any of my debts, DFD are fully aware of this and have agreed to close the IVA down.

I should receive the failure certificate towards end of February.

I am applying for a DRO through National Debtline and have already been assessed as acceptable when I get this but I need to ask how many months in bank statements do I need to show - is it 2 months!?

Many thanks.

That sounds OK then.

There's no fixed requirement regarding proof of income so you will have to run that question past your intermediary at National Debtline.