IVA & Bank charges

[Longleigh10]

Hello,
I'd like to put a question to the forum on behalf of a good friend, whom I'm trying to persuade to claim her bank charges back.
She has an IVA arrangement through the debt counselling service.
What do people think or know about trying to start this process whilst an IVA is in place?
My feeling is it shouldn't make any difference as it would go towards repaying the existing debt.
But she's extremely worried and wouldn't want anything to jeopardise her situation. Feedback would be much appreciated.

[Penfold92]

Hi,

It really depends where they are in the IVA...beginning, middle or end! I am at the beginning of mine, however am selling my house to pay off as full and final settlement. Then going for the banks. I did ask the question in one of my threads and got conflicting replies. One reply I private message I got may help you...

I read in one of your posts that you had an IVA and were trying to claim back money. Can you please let me know if you managed to do this or where you are with it? Yes you can !! Your IVA is made up of money that you oew your creditors, in this case your creditors owe YOU money from there unlawful charges.. I have claimed from the Halifax £1916 which they settled out of court.. Halifax are one of the 'Main' creditors in relation to my IVA.. they didnt argue or question it, in fact they sent payment to my IVA supervisor so it comes off the overall debt.. There is nothing more pleasing than the HALIFAX paying off my debts for me

Reason I ask is I am trying to do a similar thing, but have been told on my thread (type in responsible lending) that I have acknowledged the debts Legally via the IVA therefore people do not think I can go the CCA route to say the debts were illegal in the first place... Who ever told you this is talking nonsense... It wouldnt suprise me if they work for an IVA company!! On the contrary i am also in the process of claiming from the Nationwide, Capital One Credit Card and 3 x Halifax Credit cards... Cap 1 and Nationwide are not involved in my IVA and so they will pay back the money to me and not IVA..

It would be really helpful to know what you have done and where you got with it, You have nothing to lose and everything to gain.. the money you are asking to be returned to you is rightfully yours..

Feel free to ask for assistance when you need to, and go back to that thread where they say you cant claim and put them straight..


Hope this helps,

Penfold

[gizmo111]

Some information in here http://www.consumeractiongroup.co.uk...you-stand.html

Originally Posted by Penfold92

Hi,


Reason I ask is I am trying to do a similar thing, but have been told on my thread (type in responsible lending) that I have acknowledged the debts Legally via the IVA therefore people do not think I can go the CCA route to say the debts were illegal in the first place... Who ever told you this is talking nonsense... It wouldnt suprise me if they work for an IVA company!! On the contrary i am also in the process of claiming from the Nationwide, Capital One Credit Card and 3 x Halifax Credit cards... Cap 1 and Nationwide are not involved in my IVA and so they will pay back the money to me and not IVA..

Feel free to ask for assistance when you need to, and go back to that thread where they say you cant claim and put them straight..


Hope this helps,

Penfold

A CCA request is totlayy different to claiming abck charges. The absence of a CCA does not make the debt illegal - it just makes it unenforceable, however in this case the debts had been included in a formal legal agreement the consequences of breaking this agreeemnt are bankruptcy. At no point on the thread you refer to were you told not to claim charges because you were in a IVA.
I most certainly do not work for an IVA company.

[Penfold92]

Gizmo,

The post was not an attack on you! Merely stating there are grey areas here and it appears anything is possible. If Greedy Bank says I owe £3000, but most of this is made up of illegal charges then why should the other creditors in my IVA not benefit? Or if the IVA is settled myself to benefit? In my case I will be only persuing the creditors to remove credit file info, but I do believe (maybe foolishly) that if I really went for them some would give in and return unfair charges...

That is a debate for another day anyway,

Penfold

[sequenci]

Originally Posted by Penfold

illegal charges

unlawful

[Penfold92]

lol thanks for that...

[Longleigh10]

mmm... i'm still none the wiser, but if it means the possibility of bankruptcy, then I know she won't go ahead.
Then again.... can a 'bankrupt' pursue charges?
Thanks guys & gals.

[SirBankalot]

I saw this site on the recent Channel 4 programme on Barclays.

I have just written to Lloyds re bank charges for the past 5 years. I was only mildly concerned this might have an impact on the IVA which started in October after 5 months of hell.

I wrote over a week ago to my local branch ad dont have a reply!

This thread has been useful.

I see the banks are advertising heavily on TV at the moment.....if only they advertised what happens when they decide they don't like you anymore.

I was a triple a rated customer until they agreed a huge loan for my self employed wife, (more than she needed and including a 4k employment insurance and the loan was conditional on taking this, verbal condition!). 12 months later they decided to draw a line under more lending to us having doubled their liabaility with us the previous year!

A customer of some 23 years became persona non grata.

I will never forget the arrogant and patronising remark made by the local branch manager when I called to ask why they would not agree a further roll up of the overdraft..."well to be blunt we don't want this kind of custom....."

Would like to tell more. Is there an existing thread?

[judi3]

I thought you might be interested in reading this web page:
Lloyds settled NOW its round 2 the Finale

[Gingerheid]

There are so many issues here that are easily confused - we really should get a "I am bankrupt / in an IVA, what is the situation with regards to asking claiming back bank charges / asking creditors to prove their debts" faq together!

I'll volunteer to do the bankruptcy bit and most of the IVA bit!

The very highly abridged version is:

The charges were first levied after the IVA proposal was agreed but are claimed back during it's currency;

This is unlikey to happen as opportunities to incurr charges during an IVA should be limited. If it does it's a windfall. You'll need to look at what your agreement says about these, but a likely version is that you'll have to tell the IP and he'll probably ask for at least half.

If the charges were first taken before the IVA proposal was agreed but are claimed back during it's currency;

Any money claimed back will go in this order:

> To reduce the claim of the creditor that made them (They shouldn't have been claiming as much so they have to reduce their claim to what it actually was)
> If there is anything left over after that creditors claim has been reduced to zero, for distribution to other creditors in proportion to debt
> If there is anything left over after all creditors have been paid in full; to reduce the amount you have to pay into the IVA
> If there is anything left after that, to your friend's good self.

However, the highly abridged version of other matters to consider:

> It's a bit dubious who has the right to claim pre proposal charges. At the very least you'd need the nod from the IP; technically it's very much his job, but with what his fees would be he might not want to

> Even if it doesn't reduce what you have to pay into the IVA, you might still want to do it in case of any unforseen thing that crops up. For example, if you got an inheritance or lottery win during the course of the IVA you wouldn't want it to be going to pay off the charges.

> Every day you wait a bit more of it becomes time-barred. If you wait 5 years and then something happens that makes a claim worthwhile, there won't be much of a claim left.

My thought would be for your friend to get the information from the creditors and find out what the situation is first of all. An easy way out could be to write to the IP saying "The charges are £XXXX, they need to reduce their claims by £XXXX, and try and persaude him to get them to agree to it. You don't have much leverage to force them to do this unless there is some point to it; for example that one creditor's claim consists of a disproportionate amount of the unlawful charges.


There has been a case posted here where one creditor's charges were so many times in excess of their claim that the gentleman's truly wonderful wife (that I still admire for standing by him when so many unfortunately don't) managed to claim back (with the IPs approval) an amount that lead to a serious change in the position of the IVA. I would say your friend should get the figures and find out what the position is to see if it's worthwhile.

With regards to the entirely separate matter of sending a CCA letter to see if the debt is enforceable, once you have entered into an IVA it's way too late. You've acknowledged the debt and the IVA is very enforceable (by bankruptcy).

[leanne e]

I had an IVA which was settled at 27p in the £ .It was a full and final IVA which was settled within a year. As the IVA has now been concluded, if I ask for a refund on bank and credit card charges, will they be paid to myself or can they say they will keep the money owed to offset the 73p in the £ not paid.

As in an IVA all money must be shared equal to the debt percentage.

[ginger head]

Hello

It wouldn't go to you unless it happened to exceed the amount of the original debts; it would be offset against them.

Oops... I must get rid of one of my two accounts!

[leanne e]

would the money not be paid to myself as the accounts are all 'settled'

[leanne e]

2 of the creditors included in my IVA have said they will pay.
Barclays have credited my bank account(not included)with £324. This was the amount that I was charged by.
Lloyds have said that they will send I cheque £355. This is including interest (not asked for)
HFC are not playing ball. I have sent this account to FOS.
FOS have said you can claim after an IVA.
Lets wait and see.
Others to claim for still.

[phat256]

hi longleigh a bankrupt can pursue unlawfull cahrges but any money he/she will get out of it will go towards his/her estate and as such he/she will see very little of that money as a BR anything you had pre-BR is transfer to the Official Receiver and as such it is not belonging to you !