I have been in an IVA for 3 and a half years now with Simple Debt Solutions. Last wk I got a letter saying the company had been taken over by Creditfix Ltd. Everything will stay the same but the fees will be increased 23%. It said not to worry though because the creditors will have to foot the bill and my current pymts will stay the same. Im to sign and return the letter. Thing is, the creditors arent gonna be happy with such a huge rise in fees so my next years payment may increase significantly. Im just about surviving with my current payment so couldnt manage if it goes up. Will I sign and agree to it and if I dont, where do I stand? What are my rights?
You dont have to agree to the fees going up as you can continue your iva on the terms they bought it at.
Theres not problem with refusing to sign the increase it just makes the IP more more money it wont breach your IVA.
Fees have nothing to do with payments as payments are taken from your income and expenditure.
The Fees come from the final pot of all the money you paid in during your time in the iva before it is dispensed to the creditors.
(happy to stand corrected by our team of experts)
Last edited by viperboyz on Sun Jan 19, 2014 1:58 pm, edited 1 time in total.
Time to end of IVA 0 days
Time to end of GT dealing with it...CC recieved after a battle royal !!
They cannot increase the fees without your agreement. What they have asked you to sign is a request for a variation to put to the creditors --- who might well refuse in any case.
When my IVA was taken over I was asked to sign a similar letter, which, among other things, sought to increase the fees to 25%. I refused and my IVA continued on the original terms.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Why do they need to increase their fees? We all need to see fees increased - but to allow one firm to do this, when creditors regularly reduce our fees would be a bit rich. I'll be interested to see if this is generally accepted by creditors at the end of the day, and what reasons have been given for the need.
