My Husband and I are in the middle of our IVA and have just reviewed ours. Because of job promotion we are increasing our monthly payments which will go before the creditors.
We hadn’t been told when this will start from but have noticed today they have already increase the payments to my bank without any notification to us. The bank account I have is one that they recommend. When I rang the bank to discuss it they put me straight through to the IP, where upon I was told that they are taking now because the creditors will ask where the access money has gone even though it hasn’t been presented to them yet and agreed! I’m confused; I thought we would have been notified of when they would be taking the money from not just increase it.
When I asked this question to IP they said if it didn’t go through then it would be passed to someone else in the team where upon the IVA would not be valid and ended. We have made regularly payments up until now so am worried and confused!
Another question, we have had the IVA for 2 ½ years now and 4 out of creditors have never submitted any evidence and as such never received any money from the IVA! I take it the money is held and IP get the interest. What happens if they never submit evidence and what happens to the money being held?
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Once it was agreed that payments were to go up your direct debit would have been amended.However, the IP should at least inform you when the extra monies would be coming out to make sure there was sufficient money in the account and you got no shocks. If you incurred charges as a result of the money being taken you could ask for this to be refunded or taken off your next IVA payment.
Any interest gathered from your payments will be paid to creditors and not to the IP. If a creditor does not claim their dividend is divided among those creditors that do claim but even so all creditors are bound by the IVA. This is very unusual as creditors do normally claim.
