We have had a join IVA for over 6 years now - starting in May 2010. in this time we have paid £84.5K in monthly payments and £36K in reclaimed PPI. The original debt was £106K. Grant Thorton now want an extra years payment (over £14.5K) because I amtoo old to remortgage. I have now overpaid the original debt in my terms. GT say I have nowhere near repaid 100% because of payments to them, to their PPI agent (who they insisted I went with) and to "accrued interest on the debt". When I said I thought the purpose of the IVA was to freeze the interest they indicated that GTs aim was to get back as much of the debt as possible inc interest which certainly wasn't what I signed up for. Very unhappy with them; have I a case for the financial ombudsman?
Hi -- Welcome .. I am afraid the F.O has no jurisdiction over IVA arrangements.
Also you owe the full debt plus fees and statutory interest until the IVA has finished, or this full sum is met.
VERY roughly on your figures you would need to have paid over about £166,000 (disregarding the reducing balance for the purposes of calculating statutory interest).
You have paid, thus far, £108,500 ( a third of the PPI would have gone in claims company fees). So the IVA will continue on the agreed terms.
Last edited by Foggy on Mon Jun 27, 2016 3:54 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The interest that is frozen by the IVA is that interest that would have been imposed by your creditors, usually well in excess of the 8% that is charged within the IVA if you are in a position to pay the 100% + fees, etc.
You will see when the next report is issued to you that creditors will not have been repaid 100p/£ plus the statutory interest.
You could seek a variation asking creditors to waive their right to statutory interest but on the assumption there were large fees involved with the PPI recovery that would probably not make enough of a difference to you to be able to avoid the extension requirement.
You should be able to roughly check the position as regards costs on the last annual report.
