No - the £90 is her disposable income as calulated this morning by the OR. Her IVA payments were going to be higher, as she was going to revert to an interest only mortgage.
I really do not see the other banks lobbying Northern Rock on this point - as they will be reluctant to dabble in another organisations policy - and the loss is relatively small fry compared to their overall lending.
Whatever we feel about this creditor, we have to respect that they have their own policy and are sticking to it. In my experience banks rarely take much regard for other lenders in an insolvency scenario, and more and more I am seeing individual lenders charging (!!) ahead with charging orders when they become aware of a looming insolvency - thus seeking to gain advantage. Again, they cannot be blamed for having a good collection policy - banking is a commercial industry at the end of the day.
Our regulators are in the process of discussing various policies with a number of major stakeholders in an attempt to understand why they have their current policies and why they do not feel that an IVA offers a sensible method of repayment for them. In Northern Rock's defence, a lot of their lending is linked to a customer's mortgage term - often over a lengthy period with a very favourable interest rate. They are refusing to accept IVA proposals which seek to write off a substantial amount of that debt after five years, and you have to see matters from their point of view to a certain degree.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk