New 2021 Protocol

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Foggy

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Post by Foggy » Mon May 10, 2021 6:58 am
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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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kallis3

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Post by kallis3 » Mon May 10, 2021 8:05 am
Sounds a much better deal to me. Bet CF won't be happy with fixed fees!
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Foggy

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Post by Foggy » Mon May 10, 2021 8:11 am
Mon May 10, 2021 8:05 amkallis3 wrote:
Sounds a much better deal to me. Bet CF won't be happy with fixed fees!
I am sure they will try to make changes !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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luluj

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Post by luluj » Mon May 10, 2021 5:02 pm
I spent time reading it over as well and agree it appears to be a more rounded approach and have sensible changes written into it.

I am sure we still see and hear about different interpretations but in the main I feel it is definitely written in a more friendlier and easier way to understand.

Fingers crossed it makes a difference to those setting out down the IVA route.
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Foggy

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Post by Foggy » Sun Aug 08, 2021 6:20 pm
The new Protocol, should an IP wish to use it, came into force on the 1st August. A few minor tweaks from when I last read it.

Updated version here: https://www.gov.uk/government/publicati ... tocol-2021
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Foggy

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Post by Foggy » Thu Aug 12, 2021 3:15 pm
As promised -- here is the link to the article on this subject published by our friends over at Debt Camel: https://debtcamel.co.uk/2021-iva-protocol/
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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