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Posted: Wed Oct 08, 2014 10:07 pm
by jillyj
I entered into an IVA in 2007, due to my husband being ill and unable to work. I paid 334.00 for 60 months as agreed in my contract. No payments were missed. When I was due to complete, I had my property valued and was told there was no equity to be released into my IVA. I was contacted by a loan company who worked in conjunction with DFD. I was told I needed an extra 6,000 to satisfy the creditors. At this point I was also told that there was an outstanding loan of £10.000 that had not been included in the IVA. I was totally shocked at this as I thought everything had been included. Apparently the loan had a charging order on my property and therefore could not be included in the IVA. I had no requests for money re the outstanding loan from the company for the 5 years I had the IVA. This meant that now I had to have a loan for £16,000 before the IVA could be completed. £6,000 to my creditors plus £10,000 to the loan company. DFD and Select Partnerships arranged the loan (due to my bad credit the interest was huge)and the money was shared out between the two. I now have to pay back a further £278 pm for the next 10 years to clear the new loan. However 12 months on and I have still not completed, today I have had another letter from DFD asking me for my earnings and other income and bank statements etc., This is so that they can make a final decision as to whether I can make further contributions to my creditors. They have also had numerous PPI claims. Is this right? and will I find myself having to pay more?

Posted: Wed Oct 08, 2014 10:47 pm
by relieved33
What a nightmare. I would guess that maybe you agreed a minimum dividend to creditors hence the £6000. I would assume you were given an allowance to pay the secured debt or at least should have been. What did your income and expenditure say? If no allowance was made, creditors had a higher return than they were due. It sounds very complicated!

Posted: Thu Oct 09, 2014 7:46 am
by jillyj
Its a nightmare alright. I had to agree to pay the creditors the £6,000 or I was in breach of my IVA. This was only agreed after the 60 months of payments were up, so I didn't get an allowance to pay the secured debt. Surely if the creditors agreed that I should pay a further 6,000 then they cant keep asking for more and more money.

Posted: Thu Oct 09, 2014 9:55 am
by Adam Davies
Hi

You should not have to pay further monthly payments based on your disposable income, only the agreed secured loan.

One consolation is that the 10k charging order is now being addressed

Good luck

Regards

Posted: Thu Oct 09, 2014 10:48 am
by TzeKin
The unsavoury thing about this post is that DFD have found a loan company that gives 'bad credit' loans so to force through the alternative 4th year remortgage scenario.
I can imaging the interest rate would be about 10% at least on these loans.
Qute simply, an extension of The iva on the usual payment for one year should have suffice.

I don't want to name people but someone on this forum said...'a reasonable loan offer should not be refused'
At the high interest rate that these loans command, No one would recommend it.Full stop.

Creditors and some Ips need to get into their thick skulls that it is their banking fraternity peers that has created this situation, where remorgaging in normal preferential terms is not feasible for 'IVAers'

Posted: Thu Oct 09, 2014 11:13 am
by Adam Davies
Hi

I don't think that secured loans should be forced on people unless this possible option was clearly explained at the start of the IVA process

Regards

Posted: Thu Oct 09, 2014 11:56 am
by TzeKin
How the iva 'creditors' mostly banks and 'lenders' seem to operate in a vacuum in the same institution is diabolitical.

It is the same morass outfit that says 'get a loan' if you can't remortgage in the 4th year and also say....they wouldn't lend at all because you are in an iva?

A schizo'disturbed insitution the banks have become.

Posted: Thu Oct 09, 2014 3:42 pm
by Goosed
Hi jillyj,

When you say you were told `there was no equity to be released into your IVA` after your property valuation, do you mean that DFD confirmed that you did not have to release equity as due to the £5000 deminis clause there was not enough equity in your property?

If this was the case why did DFD force a secured loan on you, what explanation did they give?, shouldn`t your IVA have concluded?

Or is the loan because you didn`t reach the minimum dividend payable to your creditors as agreed in your proposal?

Have DFD not explained in writing what they are doing and why?

The interest on the loan you have been forced into works out at 17% APR and the total interest over ten years is £17370, meaning you will be paying a total of £33370.

And if the £6000 part of the loan was to settle the dividend requirement as per your IVA, you certainly shouldn`t be making any further payments into your IVA.

Posted: Thu Oct 09, 2014 4:46 pm
by The Major
Hi Jilly

What a horrible situation you have been through and continue to tread, it seems for years to come, the part I struggle with is the original 10k loan secured via charge on your property I understand why it was never in the IVA as an IVA does not deal with secured debts, but what advantage was it to you to refinance this charge, and what bearing did this charge have on the IVA not being able to conclude, to what Goosed has worked out to be 17%APR,

Posted: Sun Oct 12, 2014 12:41 pm
by jillyj
Hi,
When it came to the end of the 60 months, I was told by DFD that they had agreed with Black Horse (the 10k loan) that I would release equity from the property to clear the loan. As I didn't have enough equity to pay the loan and satisfy the 6k to the creditors, that I would have to take out a further loan arranged by them to clear both debts. I would then pay the loan company back over the next 10 years. With high interest rates due to my IVA, It works out that I will be paying around 32k over 10 years for a 16k loan.

Posted: Tue Oct 14, 2014 10:12 am
by Shaun Vickery
You shouldn't be continuing to make payments to your IVA as the loan would have been made in 'Full and Final settlement' in lieu of the equity in your property, so I can only presume there is some confusion or that this is in relation to something else. You may also now be in a position to improve your arrangements, either through replacing the loan with a cheaper alternative or otherwise you might even be able to obtain a competitive remortgage. Of course this will depend on your individual circumstances. I certainly wouldn't expect that keeping the loan for the full 10 years would be your best option.

Posted: Wed Oct 15, 2014 2:45 pm
by Evette Everest
Hi jillij
If you wish to discuss this further, please drop me an email (address is in my profile) with all your contact details and I will get in touch to discuss your issue further.
Look forward to speaking to you soon.
Regards

Posted: Fri Oct 17, 2014 5:38 am
by luluj
Hope DFD havd been able to resolve your concern jillyj