CreditFix Equity Release

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Waitingforship
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by Waitingforship » Mon May 14, 2018 8:25 am
My 60 month IVA commenced in November 2012. Around April 2017 I was contacted by Perinta Finance about an early exit loan. Initially I wasn’t interested but during the conversation I was informed by Perinta that Creditfix had already extended my IVA in lieu of Equity Release. This was something I was expecting as my initial IVA Firm Simple Debt Solutions, had been thorough and up front and had primed me that this would happen. However as I had heard nothing from Creditfix I emailed them to confirm this. I received an email reply from Creditfix confirming this was correct and that my 12 month extension would conclude in October 2018.

On Saturday I received a letter from my IP which stated he would be looking to get my property valued shortly as part of the terms of my IVA. The property already has a small second mortgage against it as well as a substantial secured loan. So equity release was never going to be a viable option meaning I knew from the outset that my IVA was likely to be extended by 12 months.

My IVA however was agreed with a 5 year term and I am now 6 months into year six. Is this letter likely to be an error on the part of Creditfix or can they try and extend my IVA again or try to get me to release equity at this stage?

I have emailed the asset realisations team in the first instances and have included the email chain from last year. I have also phoned Customer services and spoke to someone who couldn’t understand why I was worried. :roll:
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Lisa Thomas
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by Lisa Thomas » Mon May 14, 2018 8:37 am
This does sound a bit odd - the point of the year extension in lieu of the equity tends to be based on standard terms which state it only applies if you have more than £5k of equitable interest.

As your IP has already deemed the extension would apply that suggest s/he's already dealt with the valuation...However the onus is usually on you to provide an up to date valuation at month 54 for perhaps you missed this aciton?

If you have those terms and can show that you have less than the £5k of equity share then it would seem to me that the extension would not apply and you should not have been paying for the last 6 months (and your IVA should therefore have been closed instead of extended.)
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Foggy
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by Foggy » Mon May 14, 2018 9:14 am
This seems to be becoming a recurring issue with Creditfix -- they appear to run everyting on autopilot and have no regard for what has already happened. Write to the IP directly, by recorded delivery, pointing out that equity has already been addressed and will not be re-visited now due to what seems to be a clerical error.
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Waitingforship
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by Waitingforship » Mon May 14, 2018 10:18 am
Lisa Thomas wrote:
This does sound a bit odd - the point of the year extension in lieu of the equity tends to be based on standard terms which state it only applies if you have more than £5k of equitable interest.

As your IP has already deemed the extension would apply that suggest s/he's already dealt with the valuation...However the onus is usually on you to provide an up to date valuation at month 54 for perhaps you missed this aciton?

If you have those terms and can show that you have less than the £5k of equity share then it would seem to me that the extension would not apply and you should not have been paying for the last 6 months (and your IVA should therefore have been closed instead of extended.)


Thanks Lisa. As I had an email confirmation from Creditfix Supervisory Team that there had indeed been an extension, I took them ya their word and did nothin further. I suspect there is equity available but releasing it was never likely. Hence I was content with the 12 months extension.
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Waitingforship
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by Waitingforship » Mon May 14, 2018 10:20 am
Foggy wrote:
This seems to be becoming a recurring issue with Creditfix -- they appear to run everyting on autopilot and have no regard for what has already happened. Write to the IP directly, by recorded delivery, pointing out that equity has already been addressed and will not be re-visited now due to what seems to be a clerical error.


Thanks Foggy. I will give them 72 hours to respond to my email and will draft a letter to send recorded delivery to my IP should they not respond. I’m just hoping it’s an oversight. Fingers crossed.
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Lisa Thomas
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by Lisa Thomas » Mon May 14, 2018 10:26 am
But how much is your share of equity? This is the key - if you can show it was under £5k at the end of year 5 then there should never have been an extension at all...
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Waitingforship
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by Waitingforship » Tue May 15, 2018 8:13 am
Update:

Panic over. Spoke to a member of CF supervisory team. They confirm that the letter was sent out in error. My IVA is still on track for closure review October 18. They even followed up the call with a confirmation email immediately, albeit at my request. Thanks Lisa & Foggy for your advice. By the way Lisa I can confirm that my share of the equity in the property would have triggered the equity close. The extension was inevitable as we knew from the off we would never be able to remortgage. The one good thing is that because CF were happy to try and pass me off to Perinta last year, they must have rushed through the valuation/Test for equity release without me having to jump through the usual hoops etc.

Thanks once again to this forum for stressing the need to keep all the emails and correspondence relating to your IVAs. Having that close to hand has undoubtedly speeded up what could has been an extremely worrying blip.

Bless you all.
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Lisa Thomas
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by Lisa Thomas » Tue May 15, 2018 8:21 am
Good to hear. Thank you for updating us.
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kallis3
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by kallis3 » Tue May 15, 2018 8:24 am
Good news - pleased for you!
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Foggy
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by Foggy » Tue May 15, 2018 8:29 am
Phew! Great news :-)
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