Existing customers

General queries

Customer Support team
Call: 0844 826 0625
Calling from a mobile:
01257 486 696
Monday - Friday 8am - 8pm
Saturday: Closed
Sunday: Closed
Email:customersupport@debtfreedirect.co.uk

Payment queries

Account Management team
Call: 0844 826 1285
Calling from a mobile:
01257 487 017
Monday - Friday 8am - 8pm
Saturday: Closed
Sunday: Closed
Email:amt@debtfreedirect.co.uk


Dealing with creditors FAQ's

Why are my creditors still contacting me?

Contact from creditors may not stop immediately, but your unsecured creditors are bound by the terms of your IVA. They must cease to pursue all legal action for recovery of unsecured debts. In practice, they may take six to eight weeks from the date of approval to catch up.

 

Large banks and credit houses and other lenders are not always efficient at communicating the change to their various departments, and the debt collection department may be the last to hear of an approved IVA.

 

Creditors or debt collectors who tell you that they “do not accept IVA payments” or that the IVA insolvency practitioner has never contacted them are just trying to get money out of you, and you do not need to make payments to them outside of the IVA.

What can I do about creditors contacting me?

Don’t panic. If the creditor contacts you by phone say “Thank you for your call, I have now entered an IVA. If you could give me an email address/fax number/postal address I will send you a copy of my Chairman’s Report. In the meantime, please put my account on hold until you have updated your systems.” Please also give them your reference number with Debt Free Direct.

 

Once they've given you a contact address, you can send them a copy of your Chairman’s Report, which is proof that you have entered into an IVA legally. Download our template which is a suitable covering letter – a copy of your Chairman’s Report will have been sent to you

Am I still being charged interest?

No. Since unsecured creditors are bound by the terms of the IVA, the amount you owe on the day of your Meeting of Creditors will not increase, and your IVA freezes the interest rates. If you receive a statement within 90 days of the approval of your IVA that shows interest is still being applied, no action is required.

A debt collection agency is chasing me?

Many creditors pass accounts to debt collection agencies, who will try to get you to make a payment. This is normal, and once again nothing to be concerned about.

 

If you are contacted by a collections agency, give them proof that you have entered into an IVA (Send a copy of your Chairman's Report) so they can update their systems.

 

Deal with them just as you would one of your original creditors. Let us know if you receive any contact from a collections agency, so we can update our systems.

I have received a letter from the bailiff's office

Please do not ignore this kind of correspondence. The bailiff will require a copy of your Chairman’s Report, showing that you are in an approved IVA. This should stop any further action.

 

If the bailiff does come to your property, they cannot legally force entry and have to stay outside unless invited in by yourself.

 

If you do not have your Chairman’s Report to hand, take the bailiff’s contact details, then call Debt Free Direct on 0844 826 0625 and we can fax the report straight to the bailiff’s office.

I have received a letter saying “Notice of Sums in Arrears”

At least once a year, following a change in the Consumer Credit Act 1974, your creditors are legally required to provide you with a statement advising of the arrears on your account. These letters are of a standard format, are for information only and no action is required.

I have received a letter threatening doorstep collections

If you receive a letter of this kind or someone calls at your property, remember that you are fully protected by your IVA, simply hand over a copy of your Chairman’s Report.


The main stages of an IVA

Once your Meeting of Creditors is approved the Customer Support team here at Debt Free Direct are your first point of contact for all queries regarding your IVA. They can guide and assist you in the best way possible throughout the term of your IVA with any problems or queries you have.

An initial review of your file will be completed. If you own or have an interest in a property, a Land Registry restriction form will be sent out to you.

 

The RX1 Land Registry form is registered at H M Land Registry to put your IP on notice if you attempt to sell your property during the IVA. We do this to preserve equity which may eventually become available to creditors, and it will be lifted once a remortgage has been finalised or in the event that your IVA is closed without equity release being necessary.

 

Selling or re-mortgaging your house during the term of your IVA is a complex process and permission must be given. Always contact us straightaway if you need to discuss it.

If you’re struggling to meet your monthly contributions, or if your circumstances change, we can help you. There are number of options that we can try, you just need to let us know the problem.

 

We can then assess the impact on your Arrangement and if a change is required, then it may be possible to seek the consent of creditors to apply a variation to the terms of your Arrangement.

 

If life events such as unemployment, redundancy, pregnancy, ill-health etc affect you just contact us straightaway.

A lot can change during the fixed term of your IVA, that’s why during your Arrangement you’ll have an annual review.

 

Your IP will be assessing your situation, to see whether the original terms of your Individual Voluntary Arrangement are still right for you. You will need proof of your income and essential expenditure, which most commonly takes the form of bank statements, bills and pay slips. For example, if your mortgage payments have changed, you can usually prove it with a bank statement - but additional evidence may be needed. You may also need your latest P60.

 

If you've had a pay rise or experienced another boost in income. If this is the case, your IP may decide that you can afford to make larger repayments towards your debts. On the other hand, if your income has dropped - or you're struggling for another reason - your payments may be lowered.

 

For an IVA variation to go ahead, it would have to be approved by enough of your lenders in the same way that they approved your original payments.

When your case completes, all of your creditors will have submitted a claim. Once the final review has been completed, your IVA will be concluded. At this point certificates of completion will be sent to your creditors and your credit report will be updated.