Should I Pursue IVA Mis-selling?

Seagullz

I have been doing some research and really feel that I was mis-sold my IVA with credit fix... I was told a lot of half truths and wasn't fully aware at the time the impact it would have on me long term.

It was the start of the pandemic and my job prospect at the time wasn't good, both myself and partner were at looking at redundancy. My debts were around 12-13K, I was making and keeping up with minimal payments but struggling with everyday expenses and stuck in a spiral with paying off and then having to re-borrow for birthdays and Christmases, school uniform and trips etc.

I started looking for help we were renting and not married at the time... I really wish I had approached step change or another reputable organisation, but I saw an Ad on Instagram offering to wipe off 80 percent of my debts and applied in a panic, they really forced the IVA and didn't explain it properly and didn't answer a lot of concerns (how long it would affect my credit rating/how it would affect my soon to be husband/ I mentioned I was about to get married and would be planning on getting a house in the near future) ... they encouraged me to not declare my then boyfriends earnings even though I told them we were due to marry that summer, it was the start of the pandemic and we were both looking at redundancy. When applying it felt so wrong when they coached me with what to put in the application, made me leave some of my expenses off... I wish I had trusted my gut instinct and not gone through with it but they were so pushy, and did not stop calling me while I was discussing with my partner and trying to decide what to do. 

They told me it would be around £90 per month and debt would be written off... sounded to good to be true.. None of this happened - it was! 

Now looking back I think I would have been better off applying for a debt management plan or consolidation of some sorts... My circumstances changed pretty quickly and I would have been in less of a difficult situation within a year of applying. I got  a new job pretty quickly after redundancy and was earning a lot more in terms of annual salary. 

Now I am paying £310 per month which I think will go up soon as I've been given a pay rise ... I have paid off around 9k and have another 6k and around 2 years left. I am also worried about them cancelling the IVA for me breaching the conditions they coached me into declaring. 

After doing some research I feel like I would like to cancel the IVA and settle with my creditors myself and try and claw back the fees that creditfix have charged me, by pursuing a mis-selling claim. I have been approached by a company who said they can help with this, but I've learnt my lesson in seeking debt advice from private companies via marketing. My credit rating has increased recently and I guess if I did this and cancelled my IVA it may have a very detrimental affect? I feel so stupid for getting advice via and Ad on Instagram... I did ask step change for help with what to do and some guidance, but they said they couldn't give me advice whilst in the active IVA - and would only help once I have a certificate of cancellation. 

In hindsight the whole thing was definitely wrong and not ethical, and I regretted it almost straight away - I was just going through a bad patch which was rectified pretty quickly... and wholeheartedly do not think an IVA was a suitable option for me personally, I wish I had understood a debt management plan and chosen that option instead  - I read on-line not having any assets alone is enough of a case to pursue mis-selling. Now I am stuck with it and will be for the next 8 years by the look of things. I have been married just coming up for three years and we want to think about getting a mortgage in the next couple of years with help from my husbands parents - I feel awful thinking that I am the main barrier to this happening and its because I was given terrible advice by a company who are just snake oil salesmen!! If only I had spoke to step change and entered a debt management plan  

Grumpelstiltskin

Have you  thought about letting the IVA fail?

You can just stop paying it and letting it fail. OK going forward you will have great difficulty getting your name on a mortgage for a good amount of time.

It's OK saying you were mis  sold but you should have done more research before you agreed to it.

Brie

Whatever you do about the IVA, complain or left it fail, what is your alternative?  Will you be considering a debt relief order or simply repaying the debts yourself?  

saving_88

i would let it fail and join stepchange. if you have no assets to protect a DMP is best. Gives you flexibility on savings etc. Also most accounts default meaning interest frozen after a while. You can pay a lump sum when you have it to clear it. I went from paying 600 a month to debts to 150. More money for me really. An IVA would take away extra income earned. 

I was mis sold one and upon joining this forum cancelled it, i was lucky i done it in the 14 days allowed before. Creditfix try to advise and say your making mistakes etc. 

Just let it fail and see. If you have assets to protect may be a diff story. A DRO may be better tbh. no payments, then everything wiped after a year. Credit rating still bad, but we are in debt, its going to be bad. 

Seagullz

Brie said:

Whatever you do about the IVA, complain or left it fail, what is your alternative?  Will you be considering a debt relief order or simply repaying the debts yourself?  

Debt Management Plan - would have definitely been waaaaay more suitable for me at the time and now, if I hadn't have been so desperate and if it was properly explained to me it would have been the option I considered - I earn too much for a DRO 

Seagullz

Grumpelstiltskin said:

Have you  thought about letting the IVA fail?

You can just stop paying it and letting it fail. OK going forward you will have great difficulty getting your name on a mortgage for a good amount of time.

It's OK saying you were mis  sold but you should have done more research before you agreed to it.

Agreed - I definitely should have done more research, as mentioned it was a stressful time and I was quite venerable - Creditfix put a lot of pressure on me to close the deal and really didn't explain the other options to me, honestly they were like aggressive sales people constantly calling me.

Agreed that ultimately I should have spoken to step change or looked on forums like this one and trusted my gut that the whole thing was wrong - but I was in a bad place at the time and very venerable and as mentioned on my OP Creditfix framed it that debt would be written off and I would be paying  a small amount - as it stands now the monthly repayments are not too dissimilar to what my original debts, and I am paying back more (I get that interest has been frozen) -  also granted I am earning a lot more now than I was four years ago. 

Seagullz

saving_88 said:

i would let it fail and join stepchange. if you have no assets to protect a DMP is best. Gives you flexibility on savings etc. Also most accounts default meaning interest frozen after a while. You can pay a lump sum when you have it to clear it. I went from paying 600 a month to debts to 150. More money for me really. An IVA would take away extra income earned. 

I was mis sold one and upon joining this forum cancelled it, i was lucky i done it in the 14 days allowed before. Creditfix try to advise and say your making mistakes etc. 

Just let it fail and see. If you have assets to protect may be a diff story. A DRO may be better tbh. no payments, then everything wiped after a year. Credit rating still bad, but we are in debt, its going to be bad. 

This is what I was thinking, cancel IVA and get what I have paid in so far released to creditors and assess what's left over with Step Change and get a DMP in place to pay off the remaining. I don't think I can get a DRO as I earn too much? 

sourcrates

It takes about a year for an IVA to fail, please don`t take any further advice from companies advertising on social media, if you want to make a mis-selling complaint, simply write a letter detailing why you think this, you do not need any 3rd party help to do it.

Debt management is likely the way forward, but be aware if you are a homeowner, your IP could make you bankrupt if your IVA fails, that is unlikely to happen, but needs a mention all the same.

Take the opportunity to save up a settlement fund whilst the IVA fails, that will give you a head start when the collection letters start coming, discounts will be available.

Any questions, please ask.

Seagullz

sourcrates said:

It takes about a year for an IVA to fail, please don`t take any further advice from companies advertising on social media, if you want to make a mis-selling complaint, simply write a letter detailing why you think this, you do not need any 3rd party help to do it.

Debt management is likely the way forward, but be aware if you are a homeowner, your IP could make you bankrupt if your IVA fails, that is unlikely to happen, but needs a mention all the same.

Take the opportunity to save up a settlement fund whilst the IVA fails, that will give you a head start when the collection letters start coming, discounts will be available.

Any questions, please ask.

Great advice - thank you, do you know of anywhere I can get a letter template or wording to send to my IVA Practitioner?  Some of my debts are only a couple of 100 pound - would be great to call up and just them written off in one go! Saving what I would have paid to the IVA sounds like a great idea!!! Do you know if credit fix will keep the fee's or will they have to refund them to me? If so only leave me with around 5k in debt left - which feels really manageable! 

Brie

Seagullz said:

sourcrates said:

It takes about a year for an IVA to fail, please don`t take any further advice from companies advertising on social media, if you want to make a mis-selling complaint, simply write a letter detailing why you think this, you do not need any 3rd party help to do it.

Debt management is likely the way forward, but be aware if you are a homeowner, your IP could make you bankrupt if your IVA fails, that is unlikely to happen, but needs a mention all the same.

Take the opportunity to save up a settlement fund whilst the IVA fails, that will give you a head start when the collection letters start coming, discounts will be available.

Any questions, please ask.

Great advice - thank you, do you know of anywhere I can get a letter template or wording to send to my IVA Practitioner?  Some of my debts are only a couple of 100 pound - would be great to call up and just them written off in one go! Saving what I would have paid to the IVA sounds like a great idea!!! Do you know if credit fix will keep the fee's or will they have to refund them to me? If so only leave me with around 5k in debt left - which feels really manageable! 

You might start with some of the letters here....sourcrates has been at this for a while...

Debt-Free Wannabe Sticky - Provit & Statute Barred Letters, Defaults, Help and Guidance, All Here... — MoneySavingExpert Forum

A bit of light reading with Debt Camel might be useful as well.

What is an IVA and how does it work? · Debt Camel