IVA Dispute Advice

WriggleFree

Hi folks,

I am currently in the process of raising a dispute against my IVA practitioner on the grounds of mis-selling and failing to provide requested information.

I have submitted a formal complaint to my practitioner along with a DSAR. I have also filed a complaint with the Insolvency Service.


To cut a long story short, when I started my IVA in Feb 2018, I was told by the case handler that my debt would be cut by 80% and that on the sixth year anniversary of the IVA, any remaining debt would be written off. Based on this information, I was encouraged to sign the IVA.

My I&E was distorted by the IVA practitioner in order to make the IVA seem more appealing. My total debt was approximately £7000. I was not a homeowner and did not have any assets of value either

Now coming up to the sixth year, I have been notified that my IVA is to run until 2025 with no debt being cut. I've also learned that my IVA practitioner has charged me over £4000 in fees.


What I would like to know, what risks do I run by disputing my IVA? Could I raise a legal case against my IVA practitioner? 

jlfrs01

I think I'd start with the paperwork you signed - what do the t's and c's state? 

sourcrates

IVA`s are mis-sold on a massive scale, the fee`s are industry standard, but as a non homeowner, and only 7k of debt, an IVA was never going to work for you.

They are designed for homeowners with massive debts who cannot go bankrupt, the asset, the house, is protected in an IVA so creditors cannot touch it.

The whole idea of an IVA is that the debtor pays an affordable payment, usually for 5/6 years, after which the remainder of the debt is wiped out, but when your debt is as small as 7k, the fee`s are over half that, and your payments half again, so there is nothing to write off, so you still have to pay almost the full amount you originally owed.

It will all be listed in the standard IVA protocol that no one ever reads, I doubt your complaint will get you anywhere, usually we just advise non payment which allows the arrangement to fail.

This can take about a year, and after that whoever owns your debts will usually start writing to you again, and you can make individual payment arrangements with each of them if you wish.