Caution when using Knightsbridge and Creditfix

CDGB · 26 February 2018 at 12:32PM

Hi,

Just wanted to give warning to anyone considering using either of these companies to arrange their IVA.

I paid off my IVA early in early June 2017. I was aware of the 6 months waiting time to give the creditors chance to reply and make a claim for the offer. Literally the day before the 6 months was up, 5th of Dec last year, my contract was transferred over to Creditfix. Who have now had this for a further 4 months and basically just sitting on it. Giving me constant excuses why they haven't finalised the IVA. I see this as major incompetence by both firms. In Knightsbridge case for taking on IVAs that they could not process while not communicating this in the slightest. The first I heard of this was a so called welcome letter from Creditfix informing me they had taken over my IVA. On taking over this already paid in full IVA all they had to do was apparently finalise the paperwork which would take 2 weeks. At the end of every 2 weeks I had to chase up a simple reply as to what was happening. Getting the same fob off at every point of contact. Also as soon as they took over my contract they started to bill me for the already settled monthly IVA amounts! which i had to wait weeks to be refunded. And it's looking like they will keep this for a further 2 months over the agreed initial 6 month waiting period. Making a total of 12 months after paying off the IVA in full.

Just a heads up to anyone thinking of using either of these companies. Neither of which seem to know what they are doing or have any grasp of basic customer service! Thanks to both of them for prolonging an already stressful time due to their inability to do their jobs or have the decency to talk to their customers in an honest way.

Deal with either of these at the risk of extra stress!

PrettyKittyKat · 26 February 2018 at 5:25PM

Have you raised a complaint with the company?

Did you pay it off early via a full and final settlement variation? Or did you pay 100p in the £?

8 months to wait for a certificate of completion is excessive - what are they saying is the hold up?

CDGB · 26 February 2018 at 7:52PM

Yes I've rang them numerous times just be told it'll be 2 more weeks. Asked to speak to a manager but just get put through to completion team that just give me the same spiel.

I paid it off fully. Borrowed the sum I would have paid over the remaining years from a family member then gave that as my settlement offer. It was excepted fairly quickly but I'm being dragged along. I think Knightbridge didn't have the staff to do the work load and so passed on the contract at the last minute. Unprofessional dealing in my eyes. And my gut feeling is Creditfix want to go through their own 6 months grace period to cover their own !!!. Meanwhile I'm just waiting about hoping for the completion certificate.

They aren't saying much. Usually 'Sorry this should have been closed. I'm not sure what the hold up is but I'll personally deal with the closure now.'
Than I don't hear from them for weeks until I chase it myself. And get the same reply. I wouldn't recommend anyone to use either of these companies.

National_Debtline · 26 February 2018 at 8:05PM

Hi CDGB

It sounds to me as though you'd be well advised to make a formal complaint now in order to hasten a response.

https://www.gov.uk/complain-about-insolvency-practitioner

Dennis
@natdebtline

CDGB · 26 February 2018 at 9:11PM

Hi Dennis,

Thank you for the suggestion, wasn't sure how to escalate this. Cheers for the help!

PrettyKittyKat · 27 February 2018 at 7:37PM

I don't understand what this 6 month period is? Why are they telling you you have to wait six months? Is to ensure they have all valid claims from creditors? I'm sure they can give notice in the final report and just don't distribute funds until this time has lapsed.

Awaiting assets can hold up a completion, such as PPI, but given that you had a f&f accepted then it should be a simple enough process to send your final report. Workload wise these are usually prioritised last in IVA's as you say, as there tends to be less urgency for these. However I'm sure there is still guidance in the insolvency law as to a timescale these should be issued within - may be worth googling just to check.

I agree a formal complaint is definitely needed!

CDGB · 28 February 2018 at 11:00AM

Yes the 6 month period initially with Knightsbridge, was to allow creditors time to reply and file claim. I rang Knightsbridge every couple of weeks in this period just to see how it was progressing. And was told that only a couple of creditors had yet to reply. So at the end of the 6 months this was a cut off. If no reply was given they would just issue the completion certificate. Now I'm getting the impression that Creditfix is pulling the same scam. Seems odd that both seem in collusion, why would Creditfix take over an already completed IVA when all they had to do was issue the completion? I'm in the process of making a formal complaint anyway. So hopefully I can finally get some closure and the shady dealings of these companies can be looked into.

Sazlou78 · 15 June 2018 at 12:29AM

I have applied.. it all went through in 6 weeks from start to finish. So I don't get this 6 month thing.
Credit fix have been nothing but helpful always there to talk to an support you

ToxtethO'Grady · 21 June 2018 at 1:43PM

Creditfix should be avoided

3 times in the last few months I've had to explain to clients of theirs that a final Charging Order shouldn't be included in an IVA as it's a SECURED debt so won't get written off.

Tinks74 · 2 July 2018 at 2:19PM

I'm not saying that your Supervisor is or isn't dragging their heels, but there is a potential explanation for the second six month period you have been told about.

The first 6 months regarding awaiting creditor claims is required and can only be shortened by the receipt of all claims by an earlier date.

The second 6 months may be explained in your original proposals in the section relating to unbanked/unclaimed dividends.
A creditor usually has 6 months in which to bank their dividend payment, many dividends are still issued by cheque (probably a lot more than you would expect), a Supervisor has to wait for that 6 month period to expire before they can deal with any unclaimed dividend.
This does not mean that the Supervisor will not be doing anything during this period, they want the case closed as much as you do at this point, there will probably be many attempts to contact the creditor asking them to bank their payment (Trying to get some creditors to bank a cheque is much more difficult than you would expect.)
Depending upon the terms of the arrangement and the amount of the cheque, the unclaimed amount may be returned to the Debtor along with a letter explaining the situation and instructions to pay that exact amount only to the Creditor should they ever chase them for it, a similar letter will be sent to the Creditor explaining that the funds have been returned to the Debtor.
If the value of the unbanked/unclaimed dividend is high enough it may result in a further dividend to creditors which starts another 6 month clock ticking.

I only mention this because it may not be the fault of your Supervisor, they may be attempting to close the IVA as soon as possible but their hands are tied by the Insolvency Regulations and processes have to be completed.

Of course there is always the possibility that they are yanking your chain, but you can only find out by asking them what is causing the hold up.

Kg2230 · 25 August 2018 at 8:15AM

When you offered settlement figure did you still have to pay yoir monthly sum while you waited if do did yhey take the extra monthly payments from final figure. I ask only i am thinking of offering a settlement figure but not quite sure about monthly payments still.

Caution when using Knightsbridge and Creditfix

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