I have an IVA with CreditFix. It was initially with PJG, but was sold to CreditFix a few years ago.
I have reached the stage of equity release. My T&Cs state that I either do the usual re-mortgage, or, I carry on with my payments for the next 12 months.
I've been contacted by a company called Just Lending, who are acting on behalf of CreditFix. They have decided that I have approx £80,000 equity in my house (I don't disagree with this). However, they have not found a re-mortgage option for me. What they want to do is give me a 'second charge' mortgage which will result in payments of £160 for the next 48 months. As this was not part of my T&Cs, I declined this offer. At this point they got annoyed, and told me I had to accept at this was the same as equity release. I continued to disagree, and they said they would pass me back to CreditFix who would confirm that they were right and I was wrong. Therefore, I would have to accept this loan. I politely ended the phone call at this point.
Can anyone advise who is right in this case? there is no mention of a second charge or secured loan in my T&Cs.
Thanks in advance
If this is not in your original agreement you do not have to accept it! Just get them to agree with the extension.
Sharing from experiences of dealing with debt
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This is of interest to me, my IVA was officially due to end in July - I had nothing from CF. I called them and got told they were waiting for a Mortgage statement from me - despite not asking for one. I emailed it over and it apparently vanished in the ether, so I sent another whilst I was on the phone to CS. A month ago I had a letter saying they were arranging a valuation on my property, so I will see what they value it at. I've had my own valuation done too. My JPG agreement mentions nothing about second charge, and although I signed the new agreement with CF, it only mentioned their charges and PPI claims. Nothing about new terms, so I assume I'm still on the old protocol.
Seanj67, you're in exactly the same situation as me. My IVA also ended in July, and I heard nothing from CreditFix. It wasn't until I contacted them that this process started. I also signed the new agreement with CF, but, as you say, that only mentioned fees and PPI. There was nothing about equity release.
I'm just concerned that Just Lending / CredtFix see this second charge as the same as the re-mortgage. This seems to be a case of moving the goal posts to their advantage.
Since reluctantly becoming a CF customer, I've had nothing but problems with them.
A secured loan is 'equity release' as is a sale. However it may not be part of your terms and conditions if it says remortgage. It is entirely acceptable for a broker to look into the possibility of equity release and advise the IP whether or not it is possible. However it is not acceptable for a broker to tell you what your obligations are under an IVA.
I've now just received a text message from a company called Norton Loans. It reads: "Good news. We will shortly be calling you on behalf of Just Lending Scotland Ltd to your recent loan application".
I think not !
It would be interesting to see on what authority Just Lending passed your details on to Norton. Apart from the fact that you did not make an application for a loan it does not appear that you ever gave them permission to pass your details to another third party.
Surely there are data protection issues but I am no expert.
A secured loan is NOT a remortgage -- they are different animals. Melanie Giles took Counsels Opinion on this and they agreed (however opinion is not carved in stone).
If an agreement simply says you have to release equity, then secured lending could br in the pot, however, most pre-2014 arrangements state either a remortgage or an extension. Some do refer to "3rd party funds" which was usually taken to mean friends or family, but some IP's are stretching this to cover (incorrectly in my opinion) secured lending --- that said, those that have tried and been challenged have usually backed down.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am in a similar position have had the letter from CF but no contact from Secure lending as yet. You do not have to accept this Secure lending are wrong. there was another EX PJG poster who had the same and CF accepted his refusal. Stand your ground!
I am just appalled that Secure lending try to use bullying tactics and CF should be made aware of this and put a stop to it!
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by recovering
I am in a similar position have had the letter from CF but no contact from Secure lending as yet. You do not have to accept this Secure lending are wrong. there was another EX PJG poster who had the same and CF accepted his refusal. Stand your ground!
I am just appalled that Secure lending try to use bullying tactics and CF should be made aware of this and put a stop to it!
They know already -- they are run by the same man !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I've just called CF for an update - They said there was " probably" an extension going to happen but the system hadn't shown an update since the valuation letter went out. The helpful lady said she was emailing them immediately to get an update for me. My agreement states "Third Party sum of up to 85% of your interest in the property or 12 additional payments". "3rd party sum" is a bit vague for my liking. I was also told when I took out the IVA that the chances of a remortgage were virtually none due to credit score etc, so it was likely to be an extension.
Last edited by Seanj67 on Wed Sep 14, 2016 5:24 pm, edited 1 time in total.
seanj67. I have a screen shot of Mel stating a secured loan is not part of t&c's please let me know if you need it ( hoping you won't)
Foggy it really let's CF down
They can be ok but the rubbish standard letters and rubbish communication at first contact is sadly lacking. I just hope people who are thinking of entering an IVA find this forum first.
