Letter from Creditor

[angelrainbow]

Our IVA was approved 26 August.

Today we received a letter from Egg, one of our creditors to say they had been notified of the IVA being approved. Some of the stuff in it was expected..

Don't use card
Destroy card
Credit reference agencies to be notified of the default.

I wasn't sure on these bits though:

"Under the terms of your credit card agreement we now require paymnet from you of the full amount that you owe us."

and

"we reserve the right to contact you regarding this matter should we require any further information."

So...what does this actually mean? Surely they know that the full amount can't and won't be paid???

And I thought they weren't allowed to contact us while we were in an IVA, or am I wrong?

Thanks in advance for any help or answers I get.

[joanna.f]

Just forward it to your IVA people and ask them to respond. I didn't get any letters from creditors even to confirm the IVA approval.

[kallis3]

Hi Angel Rainbow.

Perhaps their computer had thrown a wobbly? It does seem strange that they acknowledge your IVA, then ask you for the money!

It does take time for the message to filter down to the people at the bottom.

I would send it to your IP for them to deal with.

They can't touch you now, if they phone you, just tell them they're not allowed to contact you any more you are in an IVA, and put the phone down.

You are fully protected.

[angelrainbow]

It seems to be a standard, computer generated letter...from their insolvency department no less!

I will forward it on, as suggested..It just worried me a little.

[kallis3]

Nothing to worry about, just a b****y nuisance!!!!!!!

[ianmillington]

Basically its a common banking practice in that when there is a default, they have to issue a demand. This brings to an end any instalment arrangements that may be in place and renders the full sum immediately payable. That enables them to submit a proof of debt for the full amount due.

The other comments, well say the claim included an amount spent after you consulted the IP but before they learned of your difficulties, you would expect them to want to ask questions about it. Any routine queries would normally be via the Supervisor or in the lead up to the IVA. To all intents and purposes, it should be the last you hear from them.