Annual review in 6th year

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h
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by h » Sun Aug 20, 2017 4:53 pm
Hi We have made continual payments for 5 years and we declined the offer of a re-mortgage due to the ridiculous Terms and conditions (basically we would be paying it off until I retired!!), so I was very relieved to find out that due to having equity in the house (who wouldn't after paying a mortgage for 5 years - unless you are now in negative equity) it was agreed that we paid another 25 payments. It was confirmed over the phone that we would not need to continue sending evidence of income and expenditure, but I have received 2 letters for me and 2 letters for my husband - we have a joint IVA - received at the same time, asking for an annual review. Advice as to what I can/should do in response?
My first thoughts are to remind them we've already paid for the required 5 years and to continue to pay as previously agreed.
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Foggy
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by Foggy » Sun Aug 20, 2017 5:30 pm
You have to comply with whatever terms you agreed in the arrangement. The usual extension is 12 months in the event that you couls not remortgage, I am surprised you have been able to get a remortgage ( even under ridiculous terms!). Did it comply with the ceilings palced in the arrangement (payment no more than 50% of your IVA payment and limit on the term are the usual ones)? Was the calculated equity more than £5k ?

I assume the 2 year extension, as opposed to the usual year, was a compromise, rather than the remortgage, which strkes me as a generous compromise.

Also in the usual extension the IVA conditions apply as though it was the original term, so, again, you are getting off lightly.

If I have read everything correctly you would be better off complying.
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h
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by h » Sun Aug 20, 2017 5:52 pm
Foggy wrote:
You have to comply with whatever terms you agreed in the arrangement. The usual extension is 12 months in the event that you couls not remortgage, I am surprised you have been able to get a remortgage ( even under ridiculous terms!). Did it comply with the ceilings palced in the arrangement (payment no more than 50% of your IVA payment and limit on the term are the usual ones)? Was the calculated equity more than £5k ?

I assume the 2 year extension, as opposed to the usual year, was a compromise, rather than the remortgage, which strkes me as a generous compromise.

Also in the usual extension the IVA conditions apply as though it was the original term, so, again, you are getting off lightly.

If I have read everything correctly you would be better off complying.


Hi Foggy,
We could remortgage, however I technically refused due to the length of the proposed mortgage. We paid for the full 5 years. The additional 12 months would be up in October this year - but we agreed to another year on top of that (60 months + 25 months = 85 in total) as we were told that we needed to pay the additional year as paying it for one wouldn't cover what we needed to under the agreement. Also we have been saving some money to pay for some vital home repairs. Will this have to be paid under the arrangement, as what I understood when I spoke to them that we wouldn't need to complete any other annual assessments. It just seems that we are told so much and then more comes to light. :?
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Foggy
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by Foggy » Sun Aug 20, 2017 6:53 pm
I am afraid that many provider's call handlers do not have the training, nor the authority, to agree anything over the phone. However, many firms record phone calls and you would be entitled to a copy of that call, which could prove your claim. However, to be honest, the anguish involved would be more than just completing the review !

Regarding these savings --- if they were made out of your share of extra income and savings made on shopping / cutting back, they should be yours and your IP has no claim on them. That said, I have heard of one firm that tries to grab such savings, although I cannot recall which one.

You could lodge a complaint -- first through your providers internal complaints procedure and then, if need be, escalate this to their regulators. The regulators cannot directly direct the IP as to what to do but can levy substantial monetary fines. Complaining to the regulators needs to be done via the Insolvency Service government gateway here:

https://www.gov.uk/complain-about-insol ... actitioner

More information here:

https://www.gov.uk/guidance/make-a-comp ... cy-service
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