Loan whilst in IVA - bemused...

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pavel33

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Post by pavel33 » Tue Aug 17, 2010 9:31 pm
I always believed that no-one could apply for any additional credit, such as an unsecured loan or an overdraft, whilst in a IVA.

Not that I intend to take up this 'possibility' (my current situation is perfectly tolerable), but I have been offered a £500 loan for 12 months at what I regard as a very reasonable level of repayment - despite being completely open about being in an IVA etc. This doesn't ring right in itself, as I would have expected any loan repayments to be extremely high to reflect a poor/non-existent credit rating.

However, looking through all of my IVA paperwork I am unable to find any sentence or term that suggests I cannot obtain credit as long as it isn't greater than £500 (anything over £500 I would clearly have to obtain my IP's written consent).

So I'm a little bemused - is it the case that with all IVA's you cannot obtain any credit without the express permission of your IP, or in some cases you can as long as it is not more than £500 ?.

Thanks.
 
 

Imhotep

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Post by Imhotep » Tue Aug 17, 2010 10:04 pm
I'm sure I've heard of Barclaycard trying to give people credit cards with 500.00 limits on while in an IVA.

Personally I'd be mega-wary of anything like this. I'd double-check with your IP before doing anything to potentially jeopardise your IVA.

And if it is with a creditor in your IVA I'd steer well clear.

But I'm new here. The above is just my opinion FWIW.
 
 

Shining

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Post by Shining » Tue Aug 17, 2010 10:43 pm
I personally wouldn't take any credit without the express permission of my IP but again that's my opinion only. I've never heard of loans being offered to people in IVA's either, I wonder if others have been offered these? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Tue Aug 17, 2010 11:25 pm
I've not heard of it either.
Sharing from experiences of dealing with debt
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ThriftyWitch

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Post by ThriftyWitch » Wed Aug 18, 2010 12:16 am
Im new too so this is only in my opinion, but it dosen't sound right to me....and, the very word 'credit' fills me with dread....im a cash only girl now for the rest of my days [:)]
Trying to be thrifty!
 
 

plasticdaft

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Post by plasticdaft » Wed Aug 18, 2010 8:17 am
Who is it thats lending this money??

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

pavel33

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Post by pavel33 » Wed Aug 18, 2010 9:24 am
Thanks for the replies - even if none of us seem sure about this which surprises me really as it is a fairly straightforward question and it is very clear that credit above the value of £500 cannot be obtained without the consent of an IP.

The identity of the company doesn't really matter (although it is someone called Welcome Loans) - I mean from their perspective they probably aren't bothered about the potential implications (upon the IVA) of someone in an IVA taking out a loan. I attach very little weight to what anyone says over the phone anyway - particularly given accordingly to the company my repayments on a £500 loan over 12 months would be £44 a month plus a one off £59.95 admin charge (i.e. total repayments of £588), which seems far too reasonable...
 
 

FormerlyST1100

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Post by FormerlyST1100 » Wed Aug 18, 2010 9:50 am
Just did a search on Welcome Finance, if it is the same one it says they are no longer taking new accounts but will supply the loans via its sister company.
They also appear to be doing car finance.
I may be being cycical but to me it looks very much like what Yes Car Credit was doing before they went under and caused lots of problems for their customers.
 
 

Adam Davies

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Post by Adam Davies » Wed Aug 18, 2010 2:30 pm
Hi
Welcome loans are not the same as Welcome finance. They are a broker and will charge you 59 pounds admin fee, with a very strong chance that you will not receive loan offer.
Remember once you take out a 500 pound loan you will owe far more than the original sum, probably over 1k so you will be breaching the terms of your IVA.
Stay clear, that's my advice
Regards
Andam Davies
 
 

Mattybaldy

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Post by Mattybaldy » Wed Aug 18, 2010 4:09 pm
I'm sure Welcome are one of those dodgy companies who take a fee even if they can only find you a loan with terrible terms or needing a guarantor that no one in their right mind would take on.

My son got stung by one of those.

I'd stay well clear if I were you.
 
 

plasticdaft

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Post by plasticdaft » Wed Aug 18, 2010 6:30 pm
They cant tell you what the APR is until you have paid a fee and the APR is based on personal circumstances?!?

Avoid this company.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

pavel33

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Post by pavel33 » Wed Aug 18, 2010 7:26 pm
To be honest I'm one of the lucky ones - someone who really had no choice but to take out an IVA because at the time, having only recently taken a pay cut for another job (alternative was redundancy) I then found my working hours/salary cut by 20% and had an gas guzzling BMW company car forced upon me, so there was no way I could make my normal payments. But now (having been in an IVA for over a year) I've been able to switch to a different company car which has significantly altered my monthly pay (and duly substantially increased by monthly IVA payments) so to be honest it wouldn't be a problem to pay back a small loan.

No way do I intend to take up the loan 'offer' - as I said from the start I never did, it just bemused me !.
 
 

Dee

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Post by Dee » Wed Aug 18, 2010 7:30 pm
Just a warning I knew someone who was in a similar position who was offered this kind of deal. She paid her fee and as Andy suggested they were unable to find anyone to offer the loan even though the broker had given her repayment schedule. She relied on it so much when another company suggested that they could guarantee securing her a deal she paid a second fee only to have the same problem. Neither of these companies would refund the broker fee. Please don't entertain these companies they have no morals!
 
 

marsha1

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Post by marsha1 » Wed Aug 18, 2010 7:44 pm
I was stung with this company. I paid out the fee which I could barely afford at the time and all I got was an ofer of a loan at over 300% interest. Steer well clear.
These companies it people in the pocket when they are vulnerable.
 
 

Shining

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Post by Shining » Wed Aug 18, 2010 7:47 pm
I always go along the lines of if it's seems too good to be true....it will be. I'm sure I've missed out on opportunities in life but I can't afford to gamble with money again I know that getting too old x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
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