Paying a family member’s IVA settlement

edited 30 November -1 at 1:00AM in IVA & DRO
5 replies 1.7K views
Thomas_2Thomas_2 Forumite
2 Posts
edited 30 November -1 at 1:00AM in IVA & DRO
I am offering to pay off the final settlement for a family member, but would like to know will this in any way affect my credit rating or will there be a record of this that would affect me?

If I understand correctly I will be transferring the money to the person and they will then pay it, however the company is asking for me to provide confirmation of my identity which I wasn’t sure why they needed this.

Thanks

Replies

  • beckysheffieldbeckysheffield Forumite
    232 Posts
    Part of the Furniture Combo Breaker
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    Sounds like it!!!8217;s just for their records
  • National_DebtlineNational_Debtline Organisation Representatives - Private Messages may not be monitored
    8K Posts
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    Hi Thomas_2 and welcome to MSE,


    You would need a financial association with the person in question for your credit files to be linked. This means having some kind of credit in joint names. If this has not been the case, then helping them to pay the IVA would not be something that would affect your credit history, address etc.


    I cannot say why they have asked for ID, and if you are uncomfortable you could refuse to send it and hopefully that shouldn't stop the settlement going ahead. Be careful about paying the money into the other persons account - you wouldn't want it to be misconstrued as a windfall. Most IVAs have a windfall clause that means the individual needs to pay the lump sum into the IVA and then continue with payments.


    As IVA's are legally binding you just need to be extra careful (as you are doing) and check as much as you can first. Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Thomas_2Thomas_2 Forumite
    2 Posts
    Thanks Laura. I haven!!!8217;t been told how to pay for it yet I was just assuming I!!!8217;d pay my family member, but if this is the case then i!!!8217;ll probably be paying the company direct? I rang up and asked but the company wasn!!!8217;t very helpful in explaining the process.

    I was just worried in case it was on my record that I had settled an IVA and didn!!!8217;t want this to be a negative, but as you explained I do not have joint credit with this person so I shouldn!!!8217;t have anything to worry about there. Just checking everything like you say!
  • foxy-stoatfoxy-stoat Forumite
    6.9K Posts
    Sixth Anniversary 1,000 Posts Name Dropper
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    Dont pay the family member, pay the IP directly.
  • Hi,

    This is perfectly normal and is all to do with money laundering regulations, the I.P. has a legal duty to be diligent as to where the money comes from.

    Should the offer be accepted, then you would probably have to pay it over within one month of creditors approving it, but there are I.P's who prefer to have the money available at the time of the meeting. Again, this is perfectly normal and the money will be returned to you (it goes into a bonded account) in the event that the creditors refuse the offer.
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