IVA - paying more to CreditFix than is owed
Hi,
A friend of mine is almost 4 years into an IVA with CreditFix. Total debts of £5,500 were included in the IVA and it was agreed she would pay £5,100 over the five years. However, she has only quite recently realised that the total debt amount in the IVA has reduced to £4,500. This is due to £1,000 of debts owed to BrightHouse being removed from the IVA very early on.
She did a Subject Access Request which shows that BrightHouse sent a letter to CreditFix five days before the IVA was agreed. BrightHouse asked their debts to be removed. However, this letter was not processed until a week after the IVA had started. So all BrightHouse debts were included in the original schedule, but then removed a week later.
The result is that my friend is expected to pay around £600 more to CreditFix than she actually owes in debt! I think she needs to complain about this, but was wondering if anyone had any advice to share on this matter. Many thanks.
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Comments
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I'd be questioning why she'd go on an IVA (and enter formal insolvency with all that entails) for the sake of saving £400?
Her paying more to CreditFix than she owed in debt won't be an unusual situation, their fees are fixed at £3650 This just means the creditors get a bit more money back.0 -
Normally an IVA is binding on a minority creditor if 75% of the creditors (by value) vote in favour. So I'm not clear why Brighthouse were excluded.
Were they written off?0 -
Another shocking case of mis-selling.
IVA for 5k of debt is ludicrous, especially when you consider the fee`s.
The debtor is liable for the debt, the fee`s, interest, charges, VAT, etc etc etc.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter2 -
Probably no assets as well!sourcrates said:Another shocking case of mis-selling.
IVA for 5k of debt is ludicrous, especially when you consider the fee`s.
The debtor is liable for the debt, the fee`s, interest, charges, VAT, etc etc etc."You've been reading SOS when it's just your clock reading 5:05 "0 -
Your ‘friend’ has entered in to an IVA for such a little amount of debt! Did they not research beforehand?
technically your ‘friend’ has not overpaid because for the last 4 years or so all interest rates and fees have been frozen. I would leave it be and put it down to experience - lesson learned.Save £12k in 2023 challenge
Jan = £715 / £1,000 - Feb = £1,275 / £1,000 - Mar = £400 / £1,000 (fallen behind will make up in April)
Apr = £ May = £ Jun = £Jul = £ Aug = £ Sept = £
Oct = £ Nov = £ Dec = £Saved Total = £2,390 / £12,0000
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