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I have been religiously paying £68 per month for 3 years under the terms of my IPA. Now that my IPA has run out Moon Beaver are now asking for a further £727.00. The letter from Moon Beaver following my IPA only stated a monthly payment and the length (3 years) of the agreement. I was not aware that this could be less than the amount owing and that I could still be chased after the 3 years. A bit like finding out that your endowment doesn't cover the mortgage I suppose. Any advice welcome.
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Re: Income payment agreements
What grounds do they give for the extra?
Under an IPA you pay for 3 years the amount agreed under the IPA, which can be varied by agreement between you and the Official Receiver (or their representatives) or upon application to the court. If there has been no variation from the original terms, or if there have you have paid the new sums, then there should be no residual left at the end of the 3 years.
Or did you perhaps ask for a suspsion of the IPA payments due to some unexpected expenses? In cases like that, it can be set that the IPA continues to run, but the missed or reduced payments are deferred until the end. -
Re: Income payment agreements
Thanks Border Collie. The IPA was dated 9/7/10 and the first payment was made on 2/8/10 the next on the 15/8/10 and then on or around the 15th of each month. There have been no missed payments. When they realised that a nil tax code had been applied to my wages they took the tax for the rest of the tax year 2010/2011 (4 months) until a new code was applied. I can only restate that there have been no missed payments and I have done everything that has been asked. I do not appear to have a copy of my IPA but Moon Beaver are saying that there was a total due and that my payments have not been enough. They set the level of payments not me.Comment
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Re: Income payment agreements
So was there a period of the Nil tax code during which you paid no tax, but did not pass on that money extra money in your wages to the OR/Moon Beever? Could that be what they are referring to?
I would certainly be querying with them precisely how the shortfall they claim arose, because as far as you are concerned you complied with the payment terms of the IPA over it's full term.Comment
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Re: Income payment agreements
Thanks again, Nibbler. I'll check my wage slips although I can't remember being rich around that time. Am I right in thinking from your comments that even if they can ask for this back, they can't reassess my circumstances (income/expenditure) and ask for more money.Comment
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Re: Income payment agreements
An IPA lasts for 3 years, and the amounts due over that term are made via agreement between you and them. It is binding both ways, so if the amount has not been officially varied at the time and you kept to your obligations to inform them of any increase in income and change of circumstances, then they cannot go back and demand more retrospectively.
Once the IPA is over, it is over. It's maximum term is fixed in law. They can't decide to "extend" it.
But as said, first thing is to get their justification on why they think you owe extra. Without that, all is guesswork.Comment
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Re: Income payment agreements
I'll phone them and ask. Thanks again.Comment
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Re: Income payment agreements
I would want them to put the reasoning for their demands in writing.
Moon Beever have been coming out with some weird things lately. Not sure it has any relevance, but they have just lost the contract to collect IPAs for the OR, so maybe they are not putting the effort into administering them and doing the sums correctly that they once should have....Comment
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Re: Income payment agreements
I also wonder whether it could be something like this?
http://forums.moneysavingexpert.com/....php?t=4730810
i.e. they varied the IPA without your agreement and for some god unknown reason did not tell you they though you were paying short?Comment
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Re: Income payment agreements
Wrote to Moon Beaver (copy to my MP) asking what the point of a binding 3 year agreement was if one side could vary the terms unilaterally and retrospectively........THEY REPLIED AND APOLOGISED FOR THEIR MISTAKE. Not only do I not owe them a penny but apparently the last payment was one too many and they are going to refund it. Don't be afraid to challenge them. Thanks Nibbler.Comment
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Re: Income payment agreements
Exactly. Not only is there no point, but the Insolvency Acts/Rules simply do not permit them to do that.
Glad you got it sorted.
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Re: Income payment agreements
Well done both - excellent result!
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