Consolidation loan predicament

Get expert opinion. This is the place for new questions to be posted.
  • 1
  • 2
18 posts Page 1 of 2
wilbers
Posts: 1
by wilbers » Tue Dec 05, 2017 6:33 am
I took out an IVA with Beesley and co of £23,000and started paying back by standing order a set amount each month from 1st December 2011. it came to the end of the 60 months and i was notified i had to pay another 12 payments. Got to payment 8 and was contacted by just lending to say it was no longer with beesley but was with credit fix via just lending. Bearing in mind i had got back PPI of over £6,000 which i didn't see a penny of i am now being hounded by just lending to take out a consolidation loan (something to do with house equity) of £3022. However the payments will be 36 x £183.30 but am being informed this amount could increase to £202.71 per month! the APR is 80.20%. Just lending have said that if i take this out i will get £1,600 back from an overpayment to Beesley however they are charging me over £2,000 to set this up. To me this is getting me into more debt whereas if i had continued paying Beesley the set amount this would have all been finished by November 2017. Can anyone assist me?
User avatar
Foggy
Forum Expert
Posts: 24120
Contact
by Foggy » Tue Dec 05, 2017 7:56 am
Why was the IVA extended by Beesley ? It sounds to me that this was because of the equity -- in which case they cannot do this again.
User avatar
Ryan
Industry Expert
Posts: 675
Contact
by Ryan » Tue Dec 05, 2017 8:52 am
Hi Wilbers,

There have been a few people posting recently about being offered these sort of loans to repay an IVA. As you say I'm not sure there is any benefit in taking out a credit agreement that is going to run past the end date of your IVA. It's difficult to offer any advice without knowing the full facts but obviously do what you feel is best for you.

Regards
User avatar
SteveUK
Posts: 28
by SteveUK » Wed Dec 06, 2017 8:59 am
From a laymans point of view Just say NO

You have 4 payments left on your IVA, why on earth would you want to commit to 36 months payments at a horrendous interest rate?

I wonder how many people Creditfix are suckering into this scam?
User avatar
Ryan
Industry Expert
Posts: 675
Contact
by Ryan » Wed Dec 06, 2017 5:09 pm
As Steve says there's definitely no benefit to you in extending the term/impact of the IVA.

Regards
User avatar
kallis3
Forum Expert
Posts: 72034
Contact
by kallis3 » Wed Dec 06, 2017 5:44 pm
I certainly wouldn't have done it.
User avatar
SteveUK
Posts: 28
by SteveUK » Wed Dec 06, 2017 5:48 pm
Is this the new 'PPI' scandal unfolding?

It ought to be.
User avatar
jonathah
Posts: 22
by jonathah » Wed Dec 06, 2017 9:00 pm
As someone who is new to this game I am struggling to understand how an IP flogging a loan is legal when during an IVA you are not supposed to take out credit over £500.
User avatar
jonathah
Posts: 22
by jonathah » Wed Dec 06, 2017 9:01 pm
SteveUK wrote:
Is this the new 'PPI' scandal unfolding?

It ought to be.

That sir is the correct answer
User avatar
Foggy
Forum Expert
Posts: 24120
Contact
by Foggy » Wed Dec 06, 2017 9:03 pm
jonathah wrote:
As someone who is new to this game I am struggling to understand how an IP flogging a loan is legal when during an IVA you are not supposed to take out credit over £500.


.... without the IP's permission !! If he is "selling " the loan, he is giving permission ! Also, in modern IVA's they can also force you to take a secured loan now for equity release, if the conditions are right.
User avatar
jonathah
Posts: 22
by jonathah » Wed Dec 06, 2017 9:27 pm
Foggy wrote:
jonathah wrote:
As someone who is new to this game I am struggling to understand how an IP flogging a loan is legal when during an IVA you are not supposed to take out credit over £500.


.... without the IP's permission !! If he is "selling " the loan, he is giving permission ! Also, in modern IVA's they can also force you to take a secured loan now for equity release, if the conditions are right.



Ah ha! The cunning weasels have it all stitched up !
User avatar
Ryan
Industry Expert
Posts: 675
Contact
by Ryan » Thu Dec 07, 2017 9:29 am
Foggy,

So would that mean they are giving 'advice'? If so presumably they would have to be regulated to do so by the FCA? Just a thought.

Regards
User avatar
Foggy
Forum Expert
Posts: 24120
Contact
by Foggy » Thu Dec 07, 2017 9:46 am
Ryan wrote:
Foggy,

So would that mean they are giving 'advice'? If so presumably they would have to be regulated to do so by the FCA? Just a thought.

Regards


I doubt it -- I am guessing these things are generally a referral to the regulated provider, rather than advice. Could be a thin line though.
User avatar
Ryan
Industry Expert
Posts: 675
Contact
by Ryan » Thu Dec 07, 2017 9:49 am
Thanks Foggy,

That's a very thin line there.....!

Regards
User avatar
jonathah
Posts: 22
by jonathah » Thu Dec 07, 2017 8:56 pm
CF or rather their Irish parent co. is necessarily FCA regulated. I doubt whether they've overlooked the question of ticking the right boxes to provide advised sales. Anyhow, the difference between advised and non-advised is all in the telesales script and the template emails and letters:)

I still think this is a pretty damnable conflict of interest and shouldn't be happening.
  • 1
  • 2
18 posts Page 1 of 2
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 24 guests