Missold IVA

matte134

I entered an IVA in Jul 2021 and has voluntarily terminated it in May 2024. I believe I was missold the IVA and wasn't given the correct support whilst in it. I've put a compliant in regarding this.

Was just wondering has anyone else here had any experience complaining about a missold IVA and if so what was the outcome?

fatbelly

I've subscribed in case we get any interesting responses.

It's my observation that many, maybe most, IVAs are missold when looked at objectively.

But as they are poorly regulated there is little scope for compensation or sanctions.

Meanwhile, here's a link to a Debt Camel article

https://debtcamel.co.uk/complaint-iva/

Grumpelstiltskin

The problem is  you have is that you should have fully researched what you were signing up for before you entered the IVA.
Did you see an advert on social media that promised the earth?  If so you should have at least Googled IVA to see what was online about them.

sourcrates

Can`t add much more really, IVA`s are mis-sold on an industrial scale, we see it all the time on these boards.

Mainly down to adds on social media promising to write off up to 81% of your debt, the issue is that anyone can set up as an IP, with the right credentials, and so these companies sell these arrangements to all and sundry, whether suitable or not, mostly not.

In all cases you should do your own due diligence before signing up to any debt solution.

So as much as we may sympathise with your situation, its unlikely you will be getting a pay-out anytime soon.

RAS

Presume all your credit records are defaulted? Just stop paying your creditors and hope they fail to enforce. 

fatbelly

There are now firms that charge a fee to investigate IVA misselling, promising compensation.

What a shambles

stu12345_2

if you had went for debt help via an organisation like step change or other debt charity and they said IVA was the best solution when it wasn't, you may have comeback to complain.

but if you acted via a radio or internet advert for ivas in your own accord, then don't think you have any grounds

but as fatbelly says, you may be able to complain , but it will cost you

fatbelly

Don't pay anyone to make a complaint. If you've been scammed once, don't repeat the process.

stu12345_2

I was missold a protected trust deed in Scotland in 2005 ,which is the English equivalent of an IVA.
It was set up by the cccs who became step change.
I owed £8000,( messy divorce )I worked full-time, but rented from council.
I paid £140 a month for 3 years. the insolvency fees alone were over £2500.
I saw the bill , the insolvency lead solicitor was on £120 an hour wages, chief one was on £200 an hour, so creditors got very little back from me

I should have been on a dmp

I had a car worth £2250 , but the insolvency practitioner put down it was worth £1500, cos that was the limit

matte134

So I originally went through Freeze Debt who pushed the IVA to me, then passed me over to the Insolvency Practioners who rushed through the set up without any explanation. 

I have seen the FCA announced it was trying to bring in a ban on debt packagers getting refferal fees from IPs in Dec 2021, which it succeeded in doing in 2023. Freeze Debt stopped being registered with the FCA at the same time and I believe this is why. They clearly were pushing me to get an IVA, even telling me to fudge the numbers to have a better chance of it getting accepted. My IPs went off all the details Freeze Debt gave them and didn't discuss them with me at all. 

To be honest I'm not looking for compensation or a lump sum. All I'm asking for is that the IVA is removed from my credit reports. 

And yes I know I should have done my research before hand. But when your the position where you have Debt collectors contacting you everyday and you have 'financial experts' telling you this will solve that and stop it all, you don't stop to do your own research, you put your trust in the 'experts'. 

stu12345_2

it may be until.2027 before it leaves your credit report.
what solution did you do in 2024 to clear your debts.

yes in 2005 I put my trust in debt charity cccs, who got it wrong.

this was obviously before all the advice and info I have  learned from MSE