As some will know the new 2021 version of the Protocol has been published over on .GOV.UK --- here is the link for those who like reading https://www.gov.uk/government/publicati ... a-protocol
Our good friends over on Debt Camel will be publishing a far more informed (and easier to read) article on this soon -- when they do I shall post the link, but, in the meantime here are my initial ramblings, having spent a good chunk of the weekend reading and drinking copious mugs of coffee. Remember - these are my untrained thoughts only and my interpretations could be way off:
The new Protocol is an improved document, addressing various recent issues and, even better, written in (mostly) plain English.
It has clarified the equity release provisions, which appear to debunk the new methods of calculation recently appearing. The position regarding equity is also decided at the start and written into the proposal as are the fees for the arrangement. Note also that the property valuation is to be produced by the consumer --- we are no longer ‘debtors’, but ‘consumers’.
The fabled ‘IVA Trust’ will now be severed at the end of the IVA, so post 2021 arrangements will have no mechanism for the processing of things like PPI any more (though, I suspect, us oldies are stuck with it).
Other coffee fuelled thoughts on the new pro-forma agreement template:
Section 5.1 of the pro-forma proposal seems
to indicate that, or could
be read that, for a full and final offer, if the consumer is paying the remaining agreed payments (as they usually do) but without trying for any reductions for time / admin effort saved, then the IVA can close without a variation meeting. This will need to be tested.
And, at 5.4, if circumstances make payments going forward nonviable, successful closure on payments made to date is an 'official' option.
Interesting that the proposal itself only specifically refers to remortgaging (not secured lending). Might be a loophole. This will need to be clarified in the course of time.
Windfall clause at 7.4 ... could
now be read as the first £500 can be retained by the consumer. This will also need to be clarified in the course of time.
Good to see that the £500 limit on new credit now specifically excludes utilities and insurances.
Also --- Fees, as mentioned above, are back to being a set figure and that IP's will now only get 5% of windfalls etc. on top.