Posted: Wed Mar 04, 2015 2:18 pm
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?
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?