Mis sold IVA - debt advice

tmoneysauce
tmoneysauce Posts: 10
Name Dropper First Post
Forumite
After accumulating debt at a young age, I felt like it was all unmanageable and the payday loans interests kept raising, I was 20 at the time and was already in £7,000 debt, I came across the idea of an IVA by financial support systems and they told me it would help clear my debt.i was advised to lie about my expenses to make the IVA affordable.

 But they did not tell me about the other negative consequences I would face in later life, I’m unable to rent a property or get even a phone bill. I’m now 26 and trying to move on in life and think about marriage but this is hanging over my head, the annual reviews of constantly monitoring the amount of money you earn and any extra amount (bonus) is having to go to an IVA which more than 50% has gone to creditors fees. My car was on finance and with cost of living I had to return it to the car company. I am currently renting off a friend but my tenancy ends in August and won’t be able to rent privately or to my friend again. I  am in the process of trying to complain to the companies I owe money to for irresponsible lending as I was only earning 1.3k with only £200 disposable income and was accepted for so many loans and credit cards. This is so this can hopefully reduce my IVA payments. My IVA finishes next year, should I try to dispute the IVA to finish it early or should I just continue making payments till next year? I have gone to citizens advice and they have said they can’t support me with any advice due to already being in an IVA. Any advice is welcome please! 

Comments

  • sourcrates
    sourcrates Posts: 28,538
    First Anniversary Name Dropper First Post Photogenic
    Ambassador
    Yea, maybe not the best advice you ever got there, however, you are where you are, and it would make sense to continue to the end now.

    The good news is that all that negative information, defaults/insolvency etc, will drop off your credit file after 6 years, you will remain on the insolvency register until you complete your IVA, then 3 months after that, that too will be gone, and no one will ever know.

    Your credit file will improve, try to pay your regular bills on time to get better credit history, renting will be much easier, so much to look forward too there.
    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-letter
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 4,127
    Name Dropper First Post First Anniversary
    Forumite
    Well you can just stop paying the IVA and let it fail, but is that the best way forward?

    You say it was mis  sold and agree it was the worse debt remedy in your circumstances but what research did you do yourself before you went into the IVA?

    You do have to accept some blame yourself if you didn't seek independent advice  before agreeing to the IVA.
    If you go down to the woods today you better not go alone.
  • fatbelly
    fatbelly Posts: 20,233
    Name Dropper First Anniversary First Post Cashback Cashier
    Forumite
    edited 7 January at 5:02PM
    I can confirm that at CA if someone is in an IVA we have to refer them back to their insolvency practitioner, which is what I'm doing now.

    This should have been set up as a 5-year IVA, and it sounds like you've already done that, and more. Ask for the IVA to be concluded based on existing contributions. See here

    https://debtcamel.co.uk/help-ivas-cost-of-living/

    The entry on your credit file will disappear on the 6th anniversary, or when the IVA concludes, if later. So getting this knocked on the head will be a win-win. All the individual defaults should pre-date the IVA, so that would clean everything up

    Most IVAs are mis-sold IMHO, but they are so poorly regulated that there are no consequences. The lead generators sell the positives and conceal the negatives, collect the cash and walk away.

    So you need to start a conversation with your IP
  • tmoneysauce
    tmoneysauce Posts: 10
    Name Dropper First Post
    Forumite
    Thank you @fatbelly . They definitely conceal a lot of the negatives, had I been made more aware of this I wouldn’t have entered the IVA and would have tried to pay the debt off myself as I believe I would have cleared it by now and have better credit by now.

    how would you suggest concluding it early as I’m entering my 4th year 
  • Marcon
    Marcon Posts: 10,003
    First Anniversary Name Dropper Combo Breaker First Post
    Forumite
    After accumulating debt at a young age, I felt like it was all unmanageable and the payday loans interests kept raising, I was 20 at the time and was already in £7,000 debt, I came across the idea of an IVA by financial support systems and they told me it would help clear my debt.i was advised to lie about my expenses to make the IVA affordable.

    ...and the brilliant suggestion that you should be actively dishonest didn't ring any alarm bells...?

    Fatbelly's link above should help - see especially the section headed: Will your IVA firm agree to complete your IVA on the basic of funds paid to date?
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • sourcrates
    sourcrates Posts: 28,538
    First Anniversary Name Dropper First Post Photogenic
    Ambassador
    edited 7 January at 12:07PM
    Marcon said:
    After accumulating debt at a young age, I felt like it was all unmanageable and the payday loans interests kept raising, I was 20 at the time and was already in £7,000 debt, I came across the idea of an IVA by financial support systems and they told me it would help clear my debt.i was advised to lie about my expenses to make the IVA affordable.

    ...and the brilliant suggestion that you should be actively dishonest didn't ring any alarm bells...?


    Until the financial crash of 2008, this is exactly how many secured loan providers did business.

    It wasn`t uncommon for income details to be exaggerated by the loan company staff, in order for you to get the loan, and them their commission.

    The same principles applied to many fly by night IP companies, selling IVA`s.

    When people are desperate, they do tend to just "go with the flow" no matter how many alarm bells are rung.
    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-letter
  • Marcon
    Marcon Posts: 10,003
    First Anniversary Name Dropper Combo Breaker First Post
    Forumite
    edited 7 January at 2:00PM
    Marcon said:
    After accumulating debt at a young age, I felt like it was all unmanageable and the payday loans interests kept raising, I was 20 at the time and was already in £7,000 debt, I came across the idea of an IVA by financial support systems and they told me it would help clear my debt.i was advised to lie about my expenses to make the IVA affordable.

    ...and the brilliant suggestion that you should be actively dishonest didn't ring any alarm bells...?


    Until the financial crash of 2008, this is exactly how many secured loan providers did business.

    It wasn`t uncommon for income details to be exaggerated by the loan company staff, in order for you to get the loan, and them their commission.

    The same principles applied to many fly by night IP companies, selling IVA`s.

    When people are desperate, they do tend to just "go with the flow" no matter how many alarm bells are rung.
    Indeed - but OP's IVA was set up long after 2008. If, as they claim, they were 'advised to lie', it would have been around 2017.

    OP - have you actually been in touch with the firm who set up your IVA to discuss the complaints you are making here, and given them a chance to respond?
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • tmoneysauce
    tmoneysauce Posts: 10
    Name Dropper First Post
    Forumite
    Marcon said:
    Marcon said:
    After accumulating debt at a young age, I felt like it was all unmanageable and the payday loans interests kept raising, I was 20 at the time and was already in £7,000 debt, I came across the idea of an IVA by financial support systems and they told me it would help clear my debt.i was advised to lie about my expenses to make the IVA affordable.

    ...and the brilliant suggestion that you should be actively dishonest didn't ring any alarm bells...?


    Until the financial crash of 2008, this is exactly how many secured loan providers did business.

    It wasn`t uncommon for income details to be exaggerated by the loan company staff, in order for you to get the loan, and them their commission.

    The same principles applied to many fly by night IP companies, selling IVA`s.

    When people are desperate, they do tend to just "go with the flow" no matter how many alarm bells are rung.
    Indeed - but OP's IVA was set up long after 2008. If, as they claim, they were 'advised to lie', it would have been around 2017.

    OP - have you actually been in touch with the firm who set up your IVA to discuss the complaints you are making here, and given them a chance to respond?
    No I have not been in touch regarding this yet. I just wanted some advice before I proceed and to see why my options were/are.
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards