I have been asked by DFD (again) if i will join the new 2014 protocol. I have so far resisted but they sent me this...
Further to our telephone conversation, to clarify on the New Terms and Conditions, these changes have been put in place in order to simplify our processes and in effect improve your customer experience.
The Majority of changes to the Terms and Conditions only affect the way we act as supervisor and the way that we complete certain processes and procedures. However I have noted the key points and provided a clearer explanation below;
Payment Protection Insurance
Potential matters of Payment Protection Insurance claims must be investigated and any funds released from such claims should be introduced into the arrangement for the benefit of creditors. The Deed of Assignment enclosed with the Terms and Conditions should be signed and returned to ensure that any outstanding PPI claims do not hold up the closure of your account once you have made your final payment.
Best Endeavour’s Process
Under both the old Terms and Conditions and the new Terms and Conditions, where the client owns the property there is usually an obligation for them to look at a re-mortgage in attempt to release Equity and to introduce these funds for the benefit of creditors. This review is completed in the final year.
The new Terms and Conditions simply allow us more flexibility in dealing with this obligation. We have more flexibility in the following ways;
1. Not only can a re-mortgage be considered but also a secured loan. In the case where a secured loan can be obtained as an alternative this will leave more equity in the property.
2. The mortgage term cannot be extended further to the current term. It also cannot be extended beyond state retirement age.
3. Where a secured loan is taken; repayments are to be no more than 50% of what your IVA payments were. This is to ensure affordability.
4. If there is less than £5,000 equity available in the property, the property in question will be excluded from the arrangement and no further action will be taken.
5. If available funds are over £5,000 but you are unable to complete equity release for any reason, we may offer you the option to introduce additional funds through an extension to the IVA. Alternatively you could introduce the equivalent funds through a lump sum in lieu of the potential equity.
My concern is that as a creditor I would 100% insist oin the extension. Surely I'm better protected by my current terms?
I can see where, in some cases a secured loan could work, but I would be loathe to introduce the possibility formally into the terms, giving my IP the opportunity to force the issue.
There is nothing stopping you, if the figures stack up, from using secured lending under your current arrangement, should you so wish, but, as I say you are not open to compulsion.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi simon1883,
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,
A secured loan isn't like a remortgage I would avoid that clause at all costs unless the iVA will fail if you don't agree, by allowing a secured loan the rates can be very high compared to a normal 1st charge mortgage i.e 3% normal 8% secured loan the difference can be much higher depending on circumstances. Think very carefully if you don't need to have the clause don't agree.
Last edited by canaries on Wed Mar 04, 2015 7:52 pm, edited 1 time in total.
We refused the new 2014 T&C's. We did this because we found out that whilst the new protocol does have a 5k deminimus clause, any modifications set at time of IVA would still stand!
Our chairmans report modifications had the 5k deminimus clause but a further modification that clashed wiped it out (DFD use the most restrictive clause when this happens).
No way was I happy to take on more T&C's when none of the bad or ambiguous chairmans report clauses would be removed to balance it out. It would have ended up with us tied from all angles and I wasn't having that.
That was our personal experience and why we refused the 2014 protocol.
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
Pretty much somes up why I have yet to convert. I signed up to the terms offered at the time and that is what I was happy with. There is also no mention of the 85% rule either.
Sounds like a bad move - Will stay put and chance my arm with the PPI side of things!
There is no reason why the PPI side of things can't be dealt with as a separate issue using just the Deed of Assignment (but other firms manage perfectly well without).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
"The Deed of Assignment enclosed with the Terms and Conditions should be signed and returned to ensure that any outstanding PPI claims do not hold up the closure of your account once you have made your final payment. - See more at: http://www.iva.co.uk/forum/topic.asp?wh ... 596#577586"
Dependent on when where you are in terms of your IVA introducing this with that wording could be regarded as an unfair contract term.
Additionally this is incredibly badly worded "5. If available funds are over £5,000 but you are unable to complete equity release for any reason, we may offer you the option to introduce additional funds through an extension to the IVA. - See more at: http://www.iva.co.uk/forum/topic.asp?wh ... 596#577586" "May" implies the ability to vary the decision by FJ almost by making it up at the time with no stated timescales e.g. what is the maximum period of the extension?
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I think the only stumbling block is the secured loan option, as this was not discussed as an option when you entered the IVA I would personally not be keen on this unless you want to end your IVA at the 5 year point and continue with reduced payments rather than the 12 month extension
i will email Evette and see if she gets back to me. Foggy - like the idea of deed of assignment, never been offered that before, they have always packaged it up as a whole using the ppi thing as a carrot IMO
