IVA Miss selling
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draynor2012
Posts: 1 Newbie
in IVA & DRO
Hi All,
I'm towards the back end of my IVA after four years of hardship. I am looking back at the payments I have made (incl. Interest fees and broker fees and IVA fees etc...) and I can't help but think that i was miss-sold my IVA when i first took this out.
I was in a sticky situation where I owed £300 to QuidQuid, £800 on a credit card and £9,000 on a loan I took out for a car. Looking back now I believe my debts could have been sorted by contacting the debtors and arrangement payment plans etc.... however, I contacted an IVA company for advice who gave me a good route to go down which was an IVA.
Can someone please give me some advice on this as I am quite frustrated that a company took advantage of me when I was most vulnerable. In hindsight I should have contacted the debit advice service first before making any decisions.
Thanks.
I'm towards the back end of my IVA after four years of hardship. I am looking back at the payments I have made (incl. Interest fees and broker fees and IVA fees etc...) and I can't help but think that i was miss-sold my IVA when i first took this out.
I was in a sticky situation where I owed £300 to QuidQuid, £800 on a credit card and £9,000 on a loan I took out for a car. Looking back now I believe my debts could have been sorted by contacting the debtors and arrangement payment plans etc.... however, I contacted an IVA company for advice who gave me a good route to go down which was an IVA.
Can someone please give me some advice on this as I am quite frustrated that a company took advantage of me when I was most vulnerable. In hindsight I should have contacted the debit advice service first before making any decisions.
Thanks.
0
Comments
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I agree with thevdm - this is a poorly regulated industry where misselling is rife but difficult to prove and hence there are no repercussions. As things stand there are not even any data available for someone to be able to compare different IPs.
As for the OP, you are four years in and it is unlikely any other strategy will now bring things to a conclusion more rapidly than seeing this through, as long as you can afford the repayments.
If you really can't continue because of a change of circumstances then you would need to post again.0 -
Have we lost the vdm's post - I didn't quote it direct but I thought it was helpful because it came out of personal experience.0
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Unfortunatly IVA`s are not for everyone, with a debt of circa £10,000, other options were available to you, but hindsight is a wonderful thing, and i understand the need to get some kind of arrangement in place, if only for your own piece of mind.
If your not sure where to go for advice, it can be difficult to make a reasoned choice, looking at where you are now, 4 years in, it would be best to continue the arrangement, you should only have another 12 months to go, and that will be that.
Post 2 (above) mis-understands how an IVA works, in your case its more than likley you will have repaid the original debt, plus fee`s and some interest, the amount repaid depends almost entirley on how much you owe, and how much disposable income you have.
For example, if your debt had been 40k, and your monthly disposable income was £300, over 6 years, around 22k would be made in payments, minus fee`s, and the remainder would be written off.
As your balance was a quarter of that, but your disposable income most likley similar, or a bit less, you would repay the full amount outstanding, over 5 years, plus fee`s and interest.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Have we lost the vdm's post - I didn't quote it direct but I thought it was helpful because it came out of personal experience.
Deleted at their own volition.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I feel the same . I had debts that were 20 years old . The ruthless company I went with have continually extended my IVA and I’m still paying it 6 years later .
I owed 12000 in total , I’ve now paid £11000 of that debt , two thirds of which have gone to the solicitors who set it up , only one third to creditors. Yes they wrote some of the debt off - but to benefit them , not me , as I’ve still had to pay the FULL amount of debt I had . They have been so intimidating and unprofessional. It’s the worst thing I ever did - and yet I can’t complain to anyone about them - as they threaten IVA failure and court. Would NEVER recommend to anyone !0 -
BeeBee0301 wrote: »I feel the same . I had debts that were 20 years old . The ruthless company I went with have continually extended my IVA and I’m still paying it 6 years later .
I owed 12000 in total , I’ve now paid £11000 of that debt , two thirds of which have gone to the solicitors who set it up , only one third to creditors. Yes they wrote some of the debt off - but to benefit them , not me , as I’ve still had to pay the FULL amount of debt I had . They have been so intimidating and unprofessional. It’s the worst thing I ever did - and yet I can’t complain to anyone about them - as they threaten IVA failure and court. Would NEVER recommend to anyone !
Your were given bad advice, IVA`s are only really suitable for debts of 30/40k upwards, on lesser amounts, other solutions are more suitable.
The ideal IVA, would be 60k of debt, where your disposable income is £200 a month, you pay back roughly £8000, fee`s would be approx £6000, the rest is written off.
On lesser amounts, you are more likly to repay the full amount plus fee`s.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I took out an IVA in 2012 with debts of less than £15k. I didn’t own my house, and they extended the term from 5 years to 6 from the start. I can’t remember the conversation I had with the IVA company at the start and honestly can’t remember if they advised an IVA was the best option or not.
I do blame myself though, as I should have researched it more. The main issue was I didn’t realise the implications of getting credit or a mortgage in the future. I’ve been lucky enough to get a mortgage since, but because of the IVA it does limit your options and with some lenders they won’t touch you forever.0 -
Its relative - if its going to take you 10 years to pay off the debt on current salary then an IVA is right for you.
If you owe £15,000 and earn say £5,000 then your probably never going to pay it all off in a decade.0 -
what OP doesn't state is the amount you are paying to the IVA each month.
if you are paying £125 a month over 6 years, that is £9000 you have paid. does it really matter if £5k of that is for fees and the other is for your debt? either way your credit history would have taken a blow.
this way, at least you have legal protection more so than having a DMP in place
would be interesting to see what the OP was actually paying before going on the lines of mis selling0
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