We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Iva issue

Hi All,
I am really hoping for some sound advice on a difficult issue involving my husbands IVA. We had been paying it for 2 years via a standing order (as directed by the company). Each payment made without default. But at the end of each year, I would receive a default email notice. I rang each time in which they explained a computer error had occurred to do with the timings of when the payment was sent by the SO and when it was put in the system at their end and this delay would cause a default notice to be sent.
Their advice was for me to change the system whereby they would take the payment directly via my debit card.
This was working ok for a few months and we assumed, continued to work, but unbeknown to us when my debit card was updated, the IVA company did not get in touch to seek the new details and did not take any further payments!
We were completely unaware until this week when we got emailed to urgently call them regarding a default. It appears 9 months has gone by and they have not taken payment or informed us of any default. Now they want us to pay £1250 up front to correct the error.
We asked why they had not been in touch before as we could have easily rectified this issue after a month or two but not 9 months! They said they had - but we have not received ONE email or letter or telephone call until this notice this week!
Does anyone have any advice please? We have offered to pay 3 months up front and asked that the remaining 6 months be added on to our time with no penalty. Is this reasonable? Thank you all.

Comments

  • z1a
    z1a Posts: 2,522 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    So you didn't realise that for 9 months you had more money left than you should have had?
  • I have money coming in and out all over the place to be honest as differing benefits come in at different stages as well as income.
    And though I should have been more vigilant in checking - I hadn't. As the money had gone out for some 2 years plus on time all the time - I had made the mistake of naturally assuming all was well! Its £140 that goes out and I had thought I had a little extra as I had tried to always make savings with various things such as changing around my utilities to make them cheaper and less on shopping - so I naturally thought the extra had come from those savings - not that an extra £140 goes very far. I haven't been able to ever budget strictly because of various amounts of income as my husband and myself are self-employed. I also home educate my two disabled children and well the list of things that can distract you goes on.
    So in summary - no! But as Creditfix had always been so good in the past and prompt with any questions and the issue of the problem with timing by 2 days out - I had again thought they would have contacted me before 9 months.
    Quite honestly if I had spotted it sooner myself I would have paid it.
    But my life story isn't helping to solve the issue. Do you have any guidance, strictly in regards to my original question please?
  • z1a
    z1a Posts: 2,522 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    I think your proposal seems reasonable seeing as they let the situation continue for so long.
  • Craig1981
    Craig1981 Posts: 769 Forumite
    Third Anniversary
    who is the IP?
    My IVA payments were taken by Direct Debit - its cheaper for the IP doing payments this way as well, so wonder why this was never an option. when DD fails, then you and the IP aware very quickly it was returned or not paid. Standing Orders nobody is informed - if no funds, then no payments.
    if you on benefits , then standing order may be best, but speak to your IP to do lunar monthly payments (4 weekly) in line with your benefits, or even weekly, dependant on which benefit is best and makes the least impact. monthly payments when you get paid 4 weekly is not the best option.

    I agree with Z1A - when my IVA was live, and even today, two years after, i monitor every penny coming in and out, as that is what caused me to go so far into debt in the first place.

    But making sure the IVA payments were going out was priority number 1 - takes 20 seconds once a month to check. when on the IVA, you are on a tight budget, so surely the extra £££ every month you would have realised before 9 months?

    I would contact IP and ask them to make lump sum of the 3 months you offered, and extend the IVA period, unless you already extended past the 6 year max?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617.1K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.