www.iva.co.uk

Hi all,

I have recently asked about the £500 credit clause in my agreement. It was met with a stern NO. Even though it was for buying fuel for my company car! Instaed they made me take a payment break which has not really made things very easy! Was my request a reasonable one?

Also who would administer the credit?

Hi

Sometimes you are allowed to take credit up to £500 whilst in an IVA. It is a reasonabe request if you need it and can secure the credit from a finance company, however you would need to repay it in full each month.

Regards

OK. yes I would easily repay every month as it is soley for fuel. The annoying thing is I now have a repayment break that I did not want! Will confront the issue next month along with the annual review.
Thanks for the advice

Simon,

What is the exact wording of your £500 clause?

In relation to obtaining additional credit (credit card or otherwise), my IVA is worded:

'I propose that I shall not incur any credit greater than £500 during the course of my IVA except in relation to domestic utilities and to re-finance a balloon payment at the end of a vehicle Hire Purchase Arrangement without prior written consent of the Supervisor. Should credit greater than £500 be obtained without prior written approval of the Supervisor, this will constitute a breach of the Arrangement'.

I interpret the above as meaning that I can take out £500 in personal credit AND have credit for 'utilities' on top of that. It's only if I 'needed' to borrow more than £500 that I would have to seek consent.

I imagine most protocol compliant arrangements have similar wording, and could be interpreted accordingly.

If you can easily repay the credit every month, why do you need it in the first place???? Am I missing something?

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by tinks81

If you can easily repay the credit every month, why do you need it in the first place???? Am I missing something?

I assume that if it's for fuel for a company car then he'll need to pay for fuel up front and will then be able to claim it back through his company as expenses. That may be why he could easily repay it in full each month.

Hi UpToMyNeckInIt, the wording in my iva is the same, as they were taken out at similar times i wouldn't expect much different.

When I asked the SC advisor she said "it's not in the spirit of the iva to take out credit, but yes it was allowable". The IP wasn't so lenient, saying that any further credit was deemed a breach of contract. Having read other threads, IP opinions on the rules of iva's vary wildly.

Since entering my iva I have become a big advocate of local credit unions. They have a save & borrow product that allows you to borrow double your savings provided you've met the criteria. The big advantage for smaller amounts there is no credit check and they won't appear on a credit file.