Iva payment not covering debt

robbies_gal

bit confusing will try and make sense

im at the end of my iva final payment next month-ive jsut been contacted by my ip saying santander one of the creditors- have said theyre not covering the balance of my debt with them as i apparently carried on spending after my iva was accepted

theyre asking me if i remembe what happened 5 and a half years ago and saying its my fault if i carried on using my account which i dont recall doing

it was a current account and i switched to another one immediately as i was adivsed to shut this one down with the overdraft on it

meanwhile every yearly report stated evidence required next to santanders amount and every year i asked what this was about to be told-dont worry it wil be sorted

so i didnt worry about it

now why has it taken 5 years to get evidence of spending when ive constantly asked if there would be a problem

im not flat out denying i spent money im waiting for the statment to come through- im concnerned as to why i was fobbed off for five years asking the same question which could have been cleared up years ago

the iva is also stating they got a higher figure from santander originally and jut accepted it was legitimate

who is at fault here?

me-for not persuing it harder over the years although im not savvy in this business i accept what ive been told

the iva company-for not sorting it out and getting evidence sooner so i could have cleared it myself

or santander-for coming up with a figure that i spent after the iva was in force

also every statment ive recieved from sanander said a balance of 2600- they claim theyre only going to accept 350 from the iva

where do i stand?

robbies_gal

any help or advice?

National_Debtline

Hi robbies_gal


Slightly unusual one - my first instinct is to suggest that the IP ought to have made more effort to highlight this as early as possible in the IVA. If the issue is that evidence was required to show what your extra spending on the Santander account was for, the best time to ask you for that would have been there and then, not five years on when you will not realistically be able to account for any cash withdrawals etc. If there are any debit card payments dating from that time to specific shops/suppliers, then that's slightly easier to attribute.


It is your IP's role to oversee the successful completion of your IVA and to ensure that you understand your obligations as part of that. It's not entirely clear they have done that here.


Do you have any hard copies of correspondence from the IP telling you not to worry about this at the time, or was it something discussed purely verbally? If the former, that is obviously more useful to you in any complaint you go on to make.


I suggest that you raise a complaint with the IP - this can then be escalated to their authorising body if necessary - if you're not sure who this is your IP can tell you. Alternatively you may be able to use the online complaints gateway:


https://www.gov.uk/complain-about-insolvency-practitioner


Dennis
@natdebtline

DorisTrousers

Once an IVA has been proposed, creditors are notified. It follows that, especially if you bank with them, creditors freeze the account(s).

A more pertinent question may be why Santander, apparently, allowed continued use of the account facilities.

mwarby

Was there perhaps a recurring debit card payment, could be easily missed and seemingly difficult to cancel

robbies_gal

apologies for not replying sooner i didnt get my nitification for the thread

thanks dennis as i thought why leave this for 5 years only to find out at the end santander have claimed i carried on using an account

im still waiting for the apporpriate statments to see for myself what thses transactions are

as i had an overdraft with them that literally had been used up i dont see how i would have been able to carry on spending anyway-as my husbands wages were moved to a different account

i have no written proof as whnever i was asked about it was told not to worry-as i referred this to the company they said well we dont have any record of you asking so now theyre blaming me

i think the relationship manager was being very flippant with me as when i said i wanted to make a complaint-they asked me why what had they done wrong
as i explained here its the fact they havent requested this evidence for 5 years and arenow saying its not their problem that i apparently spent money after an iva was in place as that is against the rules of an iva

they also asked how i cancelled the account which i also dont remember i told them to ask santander

the amount is in the region of 2k which astounds me as we didnt have enough in the account to spend that sort of money

it cant be a recurring dd as all were cancelled and i double checked that

ive got a feeling theyve both made an error somewhere along the way are trying to get out of it by blaming me

will update when i receive the statement

robbies_gal

still no statment even though ive requested it for a second time-is it possible to complain to my IP directly as ive never spoken to him only my relationship managers

mwarby

Could it be a payday loan repayment, they'd have a CCA on the card, which isn't so easy to cancel, I've also heard that in the past payday loan companies were a bit naughty in how thy presented payments to ensure they were paid

robbies_gal

no ive never used payday loans only used cc's

robbies_gal

im still awaiting a statment just phoned them to make another complaint -it was never sent out so i have t wait again

looks like theyre washing their hands of it although several times ive said i want ti looked into as to why it has taken 5 years to get eivdence-they dont seem to care

theyve just said again what resolution do you want-i said i want to know why its taken 5 years to get a statment but according to them theyve asked and its turned up now so it doesnt matter how long ti took

do i now write directly to my practitioner or go through an ombudsman?

National_Debtline

Hi again


It sounds like your IVA firm isn't prepared to acknowledge any shortcomings here, so I refer you to my earlier post above - make a formal complaint directly to them to begin with. This won't be a matter for the Financial Ombudsman, as it's outside their scope.


Dennis
@natdebtline