Used Paypal finance by mistake while on IVA

n-1 Forumite Posts: 17 Forumite
I unknowingly had Paypal credit set as my default payment method when paying for things via Paypal. I wrongly thought that these payments were using any money I had in my Paypal from selling things on eBay and didn't really keep an eye on what was going in and out of the account as well as I should have. At first I ignored any mention of PayPal credit thinking that the account would have been closed with the IVA.

I found out about this a few months ago and have been paying the minimum payment to keep on top of things.

Obviously, this is a breach of my IVA and I am unsure what the result will be which is why I put off telling the IVA people. Is it reasonable to expect my IVA to be terminated because of this? Should I tell them and just say sorry or keep on paying the minimum balance and hope it never gets found out?


  • foxy-stoat
    foxy-stoat Forumite Posts: 6,879
    Eighth Anniversary 1,000 Posts Name Dropper
    If you bought stuff to the value of £500 say and you knew that you had £100 in your Paypal account then something must of clicked in your brain.

    What sort of sums are you talking about, a few hundred or thousand? Any chance to sell stuff you bought on your paypal account and clear the balance. Obviously remove the option to use your credit on your Paypal account NOW.

    I had a credit card throughout my IVA years ago and it was never an issue, I always paid the minimums at least and the IP never did a credit check.
  • sourcrates
    sourcrates Forumite, Ambassador Posts: 27,690
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If you don`t tell them, its unlikely they will find out, they are normally too busy to go looking for trouble.

    How much money are we talking about here ?
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  • PrettyKittyKat
    PrettyKittyKat Forumite Posts: 1,270 Forumite
    It depends on the terms of your IVA. Up to £500 is sometimes allowed, if managed - however mods can restrict this.

    When a customer took out additional credit when I worked in an IVA company then a breach letter would be issued. This gave the customers 30 days to 'rectify' the breach which would either be paying off completely or proposing a reasonable repayment scheme which paid it off within a reasonable time. The breach would be reported to the creditors usually during the annual report and it would be reported that it was rectified. If it was for a significant amount then a variation meeting may be called. If it is not a substantial amount, you are going to pay it off, and it doesn't affect your IVA payment then I can't see an IP terminating an IVA for it.
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