IVA Rejected - Out of pocket

Macman82 · 24 March 2018 at 5:21PM

Hi, I am asking for advice on behalf of a friend. She recently tried to enter into an IVA through a company called Lawson Fox, whom I have never heard of, nor can find any reviews.

It was determined that she had £240 per month available and that is what was put in the proposal. However, she was asked to pay £240 up front, non refundable.

She then heard back from Lawson Fox saying that the proposal was rejected - no breakdown was given as to who accepted or rejected.

She has since spoken to a number of her creditors and they all deny knowledge of there ever being a creditors meeting.

Long story short, she is now £240 out of pocket and as a result in a worse position than before she tried to enter into an IVA. Is it worth writing a letter of complaint to Lawson Fox asking for the money back?

Macman82 · 25 March 2018 at 1:20PM

anyone got any advice?

fatbelly · 25 March 2018 at 3:06PM

They appear to be a properly constituted company.

Yes you can complain

Complaints and refund policy

If you are in any way dissatisfied with any service we have provided you, or you wish to request a refund, please write to us at the above office address.

All matters are handled with the appropriate individual attention by senior staff. Refunds claims will be assessed on each circumstances and processed accordingly.

but their terms are clear, even if they cannot spell 'non-refundable'

We will ask you to pay the first contribution as scheduled in your proposal. This payment represents the amount payable per month under the arrangement and is required to justify to creditors that the payment is affordable.
The first payment is none refundable, should the arrangement not be approved by creditors.

You friend may have dodged a bullet. Why is she doing an IVA, rather than a dmp or bankruptcy?

sourcrates · 25 March 2018 at 6:02PM

Complaints and refund policy

If you are in any way dissatisfied with any service we have provided you, or you wish to request a refund, please write to us at the above office address.

All matters are handled with the appropriate individual attention by senior staff. Refunds claims will be assessed on each circumstances and processed accordingly.

As an individual, you have the right to cancel within seven days of your contract with Lawson Fox, or seven days of receipt of the goods, i.e. commencement of undertakings at your request after booking in a payment with Lawson Fox (whichever is the longer). On notification of cancellation under these terms and after our review, any payments already made will be returned to you.

We are licensed in the UK by the Institute of Charted Accountants in England and Wales.

Authorised and regulated by the Financial Conduct Authority (660857).

Lawson Fox Debt Solutions Limited is registered in England and Wales No. 7319288.

Our office address:

Lawson Fox Debt Solutions Limited
3rd Floor, Falcon Mill
Handel Street
Bolton
BL1 8DL

Written complaint is her next step.

Macman82 · 30 March 2018 at 4:43PM

@fatbelly shes been on a DMP for some time, with payplan, balances just going up as most creditors are still refusing to stop interest or charges, bancruptcy not an option because she doesnt have the money to pay up front and her family would literally kill her (long story). I have written a letter requesting the money back and passed it to her to sign, we'll see what happens

@sourcrates, thanks I have written a letter for her to sign addressed to them asking for the money back

Macman82 · 30 March 2018 at 4:53PM

Dear Sir/Madam

I refer to our recent correspondence in respect of applying for an Individual Voluntary Arrangement.

Following your recent letter, dated 7th March 2018, I am obviously disappointed with the outcome of the creditors meeting held on 6th March 2018.

The only response I have had is that the creditors feel that the IVA does not represent the optimum commercial outcome for them. I have received no breakdown as to which creditors voted, nor as to how they voted. In addition, I have contacted several of my creditors in the last few weeks and none of them seem to be aware that there was any litigation in respect of my proposal to enter into an Individual Voluntary Arrangement.

In addition, I paid your company £240 to provide a service to me. A service which I do not believe has been supplied as agreed, and intensified by your recent letter which basically absolves Lawson Fox from any further business with me.

To that end I would respectfully request that you refund me the sum of £240, relating to undisbursed fees, a charge which naturally, given my circumstances, has now made my situation worse and exacerbated my hardship.

You may refund me by cheque to the address above, or directly to my bank account:

Payee: xxxxxx
Sort code: xxxxxx
Account No: xxxxx

I would appreciate your attention in this matter and look forward to a refund of £240 within the next 14 days.

Yours Faithfully

fatbelly · 30 March 2018 at 5:48PM

Macman82 wrote: »

@fatbelly shes been on a DMP for some time, with payplan, balances just going up as most creditors are still refusing to stop interest or charges, bancruptcy not an option because she doesnt have the money to pay up front and her family would literally kill her (long story).

Why would her family kill her if she goes bankrupt but not if she goes into an IVa? They're pretty similar - both are insolvency and get recorded on the Insolvency Register. It's just that an IVA protects an asset like property for homeowners and has higher fees than bankruptcy.

Clearly if she is at risk of violence, this should be reported to the police.

Her details can be omitted from the public register but this is a court decision, there will be some associated costs and it needs to be done ahead of the application.

The procedure for bankruptcy is here. I assume that there is an equivalent process for an IVA and hope the insolvency practitioner discussed this with her.

Carrot007 · 30 March 2018 at 7:17PM

Macman82 wrote: »

shes been on a DMP for some time, with payplan, balances just going up as most creditors are still refusing to stop interest or charges

Has she contacted them herself persistantly. TBH some creditors will only play ball with the debtor themselves. Managed DMP's only bring in a third party to make things more difficult. (Yes they help if you are unable to do it yourself).

Failing that, she should just stop paying until they default and stop charging interest and sell the bedt on. Then either go self managed or go to stepchange.

sourcrates · 31 March 2018 at 11:45AM

fatbelly wrote: »

Why would her family kill her if she goes bankrupt but not if she goes into an IVa? They're pretty similar - both are insolvency and get recorded on the Insolvency Register. It's just that an IVA protects an asset like property for homeowners and has higher fees than bankruptcy.

Clearly if she is at risk of violence, this should be reported to the police.

Her details can be omitted from the public register but this is a court decision, there will be some associated costs and it needs to be done ahead of the application.

The procedure for bankruptcy is here. I assume that there is an equivalent process for an IVA and hope the insolvency practitioner discussed this with her.

I too was wondering why Bankruptcy is so out of the question, yet an IVA seems acceptable, possibly just the name is the problem.

The process for each is similar, bankruptcy is a little more intrusive into your life, you barley realize you have an IVA to be honest, maybe post up a statement of affairs on the DFW board for her, or maybe she could do it herself ?

IVA Rejected - Out of pocket

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