Outrageous IVA - financialsupportsystems.co.uk What can be done?

[adw1104]

My son has approached me about an IVA that he's in, asking for advice. When I read the documents relating to it I was frankly flabberghasted and outraged.

 

My son owed £7731 in various unsecured debts and his partner owed  £7713 with one additional joint debt of £1015. So £16, 459 in total.

 

They literally had no money in their accounts and my son's partner, who suffers from mental health issues was suicidal. They consulted an insolvency practitioner that advised them to both enter into an IVA and this is my first bone of contention.

 

My son's debts were probably manageable with a little assistance from the creditors and as they operate separate bank accounts and are only jointly liable for the joint debt and their joint mortgage it does not seem to me that advising either of them to get into an IVA was the best advice.

On top of of that the IP charged them EACH £4410 in various fees that they promised wouldn't get added to the debt.

 

In their state of distress they signed, without any proper understanding, an agreement to pay over 60 months £239 which they have been paying for two years and now it has been just  increased to £444 per month for the final 3 years which will mean they will have paid £21,720 over the 60 months.

 

On top of that the agreement allows for their home to be revalued at 54 months and for them to pay over 85% of any equity they have in the home at that time.

 

I literally feel sick after reading the paperwork. I though an IVA was supposed to reduce your indebtedness.

 

Surely this cannot be right. 

 

Can anyone give any helpful advice?

 

Thank you in advance for any help.

Edited February 17, 2022 by dx100uk
added A few blank lines only..dx

[comebackjimmy]

Afternoon,

 

I am following.

 

I am no expert but have some experience.  I hope the experts will be along shortly to offer advice.

 

I think it would be a good move to ask each of the creditors to prove the debt.

 

This is done by using the site template letter on this site called a CCA Request.

 

I have been trying to find it but cant so hopefully someone will come along and put a link to the template.

 

What you do is send the letter to each of the creditors and if after ten days they do not respond then legally you can stop paying them until they do respond.  In most cases they will not be able to respond and will either say so or send you a load of mumbo jumbo which is not the original and is unenforceable.  I guess that would mean you stop paying the IVA.

 

My own experience is that I helped a friend in an IVA who had ten debts.  Not one of them could provide the original documents giving rise to the debt so it all went away.  One of them even stated it was legally unenforceable but requested payment continue anyway!

 

That would deal with the ongoing debt and (I think) the re-valuation of the house.  That leaves the original fees of the Debt Management company.  Not sure if anything can be done about that but if they have a professional body or are otherwise governed by someone like the Financial Services Authority then a complaint to the governing body might be in order.   I would expect more knowledgeable hands to be along on this thread soon.

 

Best of luck.

 

[dx100uk]

Dump the iva let it fail.i

they are always a rip off and benefit no one bar the providers.

 

i bet all of the debts are consumer credit and 99% being paid to various dcas that will hold no enforceable paperwork

 

 

[comebackjimmy]

DX would you have a link to the CCA template letter.

 

I have a copy on my computer but I dont think the site policy allows templates to be posted in threads.

[mantis shrimp]

In my professional experience I have never seen an IVA that worked. The process has been horribly exploited by the parasites and sharks that populate the fringes of the insolvency world.

 

But if the IVA fails, bankruptcy action by the 'supervisor' is a distinct possibility.

Edited February 17, 2022 by mantis shrimp
clarity

[dx100uk]

Its in your post 2 Jimmy click it

[AndyOrch]

Topic moved to the appropriate forum.

 

Which company  is involved here ?

 

Andy.

 

 

.

[adw1104]

Financial Support Systems of Manchester

[AndyOrch]

https://financialsupportsystems.co.uk/

 

[adw1104]

So, apart from just walking away, is there anything that can be done to get this IVA modified to a sensible level? Is there any system of appeal or ombudsman?

[dx100uk]

if they walk away as they should the IVA will fail, doesnt need to be modified then!...just stop paying it.

you'll get all kind of pretty coloured letters from them but in the end little they can do.

quite a few threads here on doing that already.

 

they need to get ALL the info from the IVA provider via an SAR.

i will suspect as 99% of the time, they will find very very little has actually gone off the debts, most going on fees and charges to these fleecers, there also could be a hidden full and final pot that they've been siphoning money off too with the mugs that used thems knowledge too.

 

next is to get a complete list of the debts up here .

and if you can we need to see this stupid house equity stripping clause which i hope they never agreed to or has yet to happens.

 

if you are going to put docs up 

please read our upload guide carefully and only use one mass PDF please

 

dx

[mantis shrimp]

Just to be clear, if an IVA fails then the Supervisor may petition for bankruptcy. Sections 264 and 276 Insolvency Act 1986.

 

Bear in mind that there appears to be a property asset which may interest the Supervisor, who would probably become the trustee in bankruptcy. 

Edited February 18, 2022 by mantis shrimp

[AndyOrch]

For reference....

 

https://www.legislation.gov.uk/ukpga/1986/45/section/276