Mis-sold IVA ?

[SDS44]

I was wondering if anyone felt they have been mis-sold an IVA. To cut a long story short I was 8 months pregnant when I took my first step to taking an IVA. I was pregnant with what I was led to believe an extremely ill bsby and, as you can imagine, i was extremely stressed. I was informed by DFD that any monies outstanding left after 60 months would be written off. I admit I did not read the paperwork through properly and realise I should have done. I now realise I have to re-mortgage next year (i am in my 4th year and have never given a late payment or nissed a payment). I was also told by the "salesman" on the phone that they had no fees, I have now been informed by email that I have to pay charges of around 4,000 to be added on at the end. Please can someone advise

[Foggy]

Welcome. I hope that all went well with the birth in the end.

It is correct that any monies outstanding at the end of the IVA would be written off. This is, however, monies outstanding after the equity release, if that can be obtained, which is scheduled to take place before the end of the 60 month period. There is a possibility that equity will not be an issue .... For one thing, in the current market, it will prove impossible to re-mortgage, so, if there is any equity, this will be replaced by a 12 month extension to the term. HOWEVER, if there is less than £5k equity (based on 85% LTV) then the equity clause will be written out and the IVA will simply conclude at month 60.

Please clarify the position regarding fees as these are normally deducted from the payments during the course of the IVA, unless agreed otherwise in your proposal. What they generally mean by "no fees" is that the fees are taken from the monies due to the creditors ( by agreement with those creditors) so all you should be paying is your regular monthly payment.

Unfortunately failure to read what you have signed and agreed to is not grounds for mis-selling, as long as this was explained at the outset.

[Broke of London]

Hi,

Firstly I'm glad your baby was healthier than expected.

It was a bit of a mistake not to read the paperwork even with everything else going on. The equity clause is standard for property owners...and at the moment people cannot remortgage so pay an additional 12 payments in lieu of equity.

All IPs apply fees. These are usually paid indirectly by creditors in that they come out of the debt they write off. If you are repaying a high dividend, you will end up paying a percentage of the fees and if you are repaying 100p/£ then you will have paid the fees in full. All this would have been in your proposal and chairman's report.

Mis-sold is a bit strong but it wasn't explained thoroughly.

[kallis3]

Hi and welcome.

Unfortunately you won't have been missold your IVA, the remortgage clause is now standard, or could have been introduced as a modification at your creditors meeting as it was with mine.

There will always be fees to pay to a company, what the debt advisor may have meant is that you wouldn't have to pay upfront fees.

I would dig out your proposal/chairmans report and have a good read of it.

Declan from DFD posts on here and will hopefully pick up on this one.

[Declan at DebtFreeDirect]

Hi SD.
I would like to look into this before making any comments directly. I would say though that it is very important to ensure you read the paperwork and are certain of everything that’s involved and during conversations, to query anything your uncertain of. That said, it’s important we help resolve this issue for you so if you would drop me an email, I will look into this as a matter of urgency. My contact details can be found in my profile.

Thanks

[kallis3]

Glad you picked up on this Declan - hopefully the OP will contact you.

[Declan at DebtFreeDirect]

Thanks Jan, hopefully we can get this resolved.

Thanks

[Broke of London]

You always do Declan!

[Declan at DebtFreeDirect]

Thanks BOL.
Hope you are keeping well.