Problems With Debt Free Direct

[Spellkaster]

I have been in an IVA with Debt Free Direct since June 2012.

I have some concerns over how the advised me into an IVA.

1) They calculated my Disability Living Allowance as income and were using it to pay off my debts

2) My overall level of debt at the time of the start of the IVA was £11,161. This was made up of 2 credit cards a loan and a catalogue.

They also eggagerated my income being made of benefits was £962 per calender month.

I don't physically receive that, when I add a month's payments going in from the DWP it mounted to £888.

I tried to argue this with DFD and I even gave them bank statements showing £888 going in.

To cut a long story short, I spoke at length to National Debtline end of July 2014.

The said DFD should have disregarded my DLA and should not have included this as income.

National Debtline did an income and expenditure and said I was well under the £50 limit for a DRO.

I therefore feel that I have paid for just over 2 years into an IVA for nothing!!

I have paiud £2790 and their fees will take most of that money, can I argue that the IVA was missold and can I get my money back?

I feel cheated as I could have been debt free if I had known back then I qualified for a DRO.

[Debt Camel]

Re: Problems With Debt Free Direct

hi Spellkaster,

DLA can be included as income in an IVA, but of course you must have extra expenses associated with your disability and these should also have been included. Your £888 a month benefits income will actually have been £888 per 4 weeks, which is the same as £962 per calender month., so on this bit DFD were probably correct.

If you would have qualified for a DRO, then you were indeed badly advised to start an IVA. This doesn't necessarily mean that you have an easy cl;aim for mis-selling though. I have written an article about IVA complaints here: http://debtcamel.co.uk/complaint-iva/ - if you have a look at 5(c) in that post, it covers this topic.

Even if you did get your money back, it wouldn't actually benefit you as it sounds as though you need a DRO now, so the money would have to go to your creditors anyway.

You could quite reasonably decide you want to put in a complaint about the IVA mis-selling though, even if it doesn't improve your situation. If more people complained then the regulators would see this sort of thing as a more serious problem!

[Spellkaster]

Re: Problems With Debt Free Direct

I am just very very upset that I have paid for 2 years into this IVA and am still in debt.

I could have been debt free over a year ago if I had been advised properly by Debt Free Direct.

I have sent a very lengthy email to the FCA regarding this (they have yet to respond).

I am now waiting for the failure certificate to come through which I understand can take up to a ridiculous 6 months which I think is unacceptable.

I cannot proceed with a debt relief order until then.

My credit rating is now dreadful because of the IVA even though I hadn't missed any payments until the IVA kicked in.

I will never recommend Debt Free Direct to anyone.