Step Change recommending IVA?

ByzantineByron

Hi all,

Just a quick one from me. I received a very threatening sounding letter from one of the creditors (PayPal Credit) basically demanding full payment or they'll explore legal options.

I assume the standard procedure here is call them and tell them '!!!!!! off, I'm in an IVA, you're bound by it, stop contacting me' (or words to that effect)

elsien

Do not phone them. 
Write to them and keep it polite. 

sourcrates

Yes put it in writing, explain you have entered into an IVA, and refer them to your IP for any further enquires.

Keep foremost in your mind that one benefit of an IVA is that you are legally protected from any further action by your creditors, so you have nothing to fear.

ByzantineByron

Hi again,

Wanted to pick someone's brains on this as something interesting has happened.

My IVA is progressing well enough, making payments as normal. However today I got a letter from a Wilson Phillips, very cryptically saying there was beneficial information and I should call them.

I searched online and they looked to be linked to IVA's and looked legit so called them and spoke with a lady named Elaine who explained that there is a solution called a Minimum Repayment Plan.

They explained it would involve them breaking the IVA, calling various creditors (most of which have sold on the debt to various agencies) and trying to write off as much as they can before sorting minimum repayments with the rest. They suggested most people are debt free within 2 years and the most I'll have to be in this would be 6 years. They suggested my minimum payments would be lower and would reduce each year. They explained they are calling a lot of IVA customers to tell them about this as IVA customers are deliberately leaving this option out, which does sound like something they would do.

It all sounded very interesting and I'm waiting for further information but I wanted to see if anyone knew about this? Bennett Jones dressed up my options as 'IVA, DRO, Debt Repayment over 25 years and Bankruptcy' so they obviously never mentioned anything about this. I'm aware an IVA is in their interests but I'm also aware that if something is too good to be true, it usually is.

Thanks in advance!

fatbelly

Out of the frying pan, into the fire, comes to mind.

I'd give this one a miss.

You were never eligible for a DRO and bankruptcy would have endangered the house. Your choices were between an IVA and debt management, which would take more than a decade

The idea that you could clear 60k of debt in 2 years with small payments is fanciful.

ByzantineByron

I did wonder and thanks for confirming my suspicions. I'll file this under 'snake oil' and move on

sourcrates

I though Wilson Phillips was a band?

Anyway, please don`t fall for the prepared script these chancers preach from, the chances of your creditors just writing off 60k of debt is extremely unlikely, unless you had a very good reason why they should, which unfortunately you don`t.

Companies such as this crop up from time to time promising the world, but at a hefty fee of course, its rubbish, utter rubbish, if it was so good, wouldn't everyone be doing it?

Remember, you have the same access to debt solutions as everyone else does, there is no magic system only a few know about, its smoke and mirrors, stick with your IVA.