IVA wages payed into wrong account

ben9393

Good evening, I started an iva which was approved on the 6th of March and have made my first payment on it but in February Barclays closed access to my bank online etc and sent s letter asking for debit card back etc due to knowing the IVa meeting was due to be held and approved etc in early March. Now my employer I told I needed my wages paid into my new Santander account due to my Barclays account being closed. They accidentally paid me into the Barclays then paid me into the correct Santander account. They tried to reclaim the money from Barclays but Barclays said the account is open and active so I have no access to it and work now have sent me a letter stating this. I think they must think I’ve stolen double wages but I have emailed work explaining I was in an arrangement to repay my bank account (didn’t say IvA) and said I’d contact Barclays which I have done but unsure how I’m going to get on with this. I have also contacted my IVa company what chances do I have of getting it returned to my companies account. I can’t  afford to lose a months wages especially at this time of crisis. 

Silvertabby

I think I'm right in saying that Barclay's just stopped you from drawing any more money from that account, and that it isn't possible to simply 'close' an account that is in debt.  Barclay's have therefore used this money to offset your debt with them, and are under no obligation to return the money to your employer.

So, the result as I see it is that you owe your employer a months wages - although I have to say that I'm amazed that they paid you again without waiting for confirmation that they had been able to retrieve the payment from Barclay's

I'm afraid that you will have to come clean with your employer with a view to paying this back over time.  How this will reflect in your IVA I regret that I have no idea.

ben9393

I have emailed work to explain why my account access was blocked etc and said I’m in an IVa and said it wasn’t something I wanted to discuss. The thing is work we’re paying my expenses into the correct account 2 times before paying wages into the old and wrong account. I have said if I can’t get the money back from Barclays I suggested taking 100 a month out my wages which means I now need to inform my IP if this is the case as it means I can’t really afford the IVA anymore. Another step towards bankruptcy I guess 😭 

mwarby

have you spoken to your IVA company, when I had my IVA my employer accidently paid expenses into my old account, the IVA company were able to arrange for this amount to be transferred to me.

I believe that once an IVA is active your creditors no longer have the right to set off

ben9393

mwarby said:

have you spoken to your IVA company, when I had my IVA my employer accidently paid expenses into my old account, the IVA company were able to arrange for this amount to be transferred to me.

I believe that once an IVA is active your creditors no longer have the right to set off

The problem is they payed it about a week before my Iva was agreed but barclays had already sent me a letter about the iva as they knew it was due to be arranged. I’m unsure where I stand as it’s an incorrect payment in the sense that it shouldn’t have been payed into there.

mwarby

I would still talk to the IVA company, if nothing else just do they know the amount the bank can claim in IVA has gone down

i believe the bank probably has no obligation to release the funds, but Barclays were supportive in my IVA and were the only banking option for undischarged bankrupts at one point, so you never know they may release that for overall good if the IVA - I wouldn’t count on it though