IVA, o2 listed as one of my creditors

[rhythmb]

Hi, long story short. I have seven contracts with o2, some on refresh, others not. I have run into significant financial difficulty paying my bills and I have set up an IVA and listed o2 as one of my (many) creditors. 

Is it possible to get these contracts cancelled and disconnected immediately so I have a better understanding of my debt level, which I know will be pretty significant, as I've missed my last bill payment, due to be paid on the 24/04 and received default notices, or do I just let the debt be passed to the debt collection agency and let them know I am in an IVA?

[Anonymous]

I would check with the provider to see if O2 were actually included and given the chance to vote on agreeing to the IVA and get the providor (who you are paying) to contact o2 collections on your behalf. As I said the handset elements are secured debts (debts secured against the value of the handsets) and not normally includeable. The tarrif elements are unsecured and may well have been included, but you need to check, probably the worst thing to do is nothing,as the position with o2 will get worse as time goes on.

[MI5]

The handsets weren’t actually yours to sell unless the device plans were paid off.

[Anonymous]

Yes @MI5 i cant see o2 collections writing the value of the handsets off, they'll argue secured loan and demand them or the cash value back or else start procedings.

[jonsie]

I feel selling the phones off is now going to cause you big problems both with your IVA and outside this.

[Cleoriff]

I pointed out at the beginning of this thread that it would be too complicated for any of us to work out

We are only customers and none of us know the full extent of the debt and the full arrangements already in place.

Surely speaking to CS and any debt advisor involved is the best way forward? I would hate to confuse the issue further for @rhythmb

Edited for spelling!!

[MI5]

Section 14 of the applicable CCA (source)

14. Disposal of Device You should not dispose of the Device before you have fully repaid the Amount of Credit. Any disposal of the Device by you does not affect your obligation to repay in full the Amount of Credit under this Credit Agreement

[rhythmb]

Here's the situation. I sold these phones a while ago when my debt problem got out of hand to clear some of my debt. My debts have since escalated further and I've spoken to both Step Change and Payplan who both said these types of debt are included in an IVA. My creditors meeting was held in the 1at of May and O2 never responded with a vote.

I have since received individual default notices for all the lines i was paying for and not using and a letter today saying they have cut my line off as I haven't paid. I have made numerous calls to o2, spoke to the payment management line and feel like I am getting nowhere. As I have listed o2 as a creditor in my iva then it's legally binding and they have to accept whatever payment i can through my iva.

[MI5]

I wouldn’t expect regular customer service to know how to deal with this so I guess it will have to go higher.
I would email the ceo’s office with all your details and take it from there.
You can get the email address of Mr Evans off Google but passing of personal details on here isn’t permitted so I can’t tell you directly.

[Anonymous]

Excitingly it appears that O2 DO class the handset element as an unsecured loan subject to the terms of the Consumer Credit Act according to the link posted by @MI5.

So you might be as well going straight to 02 Legal as well the CEO office ( both via your IVA provider) and trying to get them to at least acknowledge that O2 IS part of the IVA. my guess is they won't want to do that as you going to court to force them will be challenging. One of the clauses in the CC agreement that @MI5 linked specifically precludes you entering into a voluntary agreement and site it's as cause for automatic default.

The creditors with most to gain from the IVA ie those you have large outstanding debts with would have had a vested interest in participating in the creditors meeting , and as only 70% by debt value have to agree then the views of small (at the time) creditors like O2 who have a lot to lose and little to gain wouldn't have mattered in any case.

 Which is almost certainly why they didn't reply. 

Bottom line @rhythmb is it's one thing to wave the IVA in the air and say to O2  'this is my protection which is legally binding on you' and quite another to force O2 to agree they are included and allow your debts to them to be paid off under its terms. You may well be forced to start an action to enforce the terms of the IVA on O2 before they start the process to collect the debts, if they apply for bankruptcy they might well win, and then your IVA may not be worth the paper it's printed on.

People are denied mortgages all the time on the back of the mobile companies debt collection tactics, so you need to take this aspect very seriously. Bet your IVA provider didn't mention any of this when you took it out! 😒

[Anonymous]

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@Cleoriff wrote:

I pointed out at the beginning of this thread that it would be too complicated for any of us to work out.

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I  don't know @Cleoriff I think @MI5 and I are making a decent fist of it and collectively we are offering sound advice - and learning a lot about IVA's in the process - 'Fasinating Captain' to quote Mr Spock. 🙂