IVA support and discussion thread

Depth_Charge

Hi

I have to say that there are some excellent & informatve postings on this thread

Anybody looking into or having issues with an IVA could do a lot worse than look in on here.

A real cross section of open posting

DC

Find_The_Real

I can see your point about PPI being relatively new UTMNII but to be honest they should be on top of the claims process by now but how many times do we see people are at then end of their IVA and only then are the claims being actioned, poor administration from both the IVA and claims companies. They should be fully aware by now just how long the claims process can take and make sure it is done early on in the IVA.

I think you are being very prudent in being on top of the PPI issue and making sure it is being dealt with as soon as possible but you are very pro-active in the whole IVA process and have extensive knowledge and expertise on what to expect, there are many who think quite rightly that their IP should be looking after their clients and may not even be aware of the PPI issues.

Just back to an earlier point about how there seems to be the band-wagon issue about making a claim even when the product was wanted, is it right that IP's and claims companies benefit from the lax claims process? (That could probably be a whole further discussion on the morals and ethics of IVA's and other debt solutions).

Depth_Charge wrote: »

Hi

I have to say that there are some excellent & informatve postings on this thread

Anybody looking into or having issues with an IVA could do a lot worse than look in on here.

A real cross section of open posting

DC

Hopefully DC people will read the thread and get an idea of what it is like to be in an IVA and the issues there can be. Admittedly it does sometimes seem like just a few of us have anything to say but I do hope people will feel they can post if they want to, as it really is for anyone to join in and have their say on any IVA subject whether they are in one or not.

Find_The_Real

Good point about the requirements but PPI wasn't just about sickness benefits, most had the life and unemployment cover as well so perhaps one small element may not have been required but the general policy as a whole may have been suitable.

If I accepted that I did not need the sickness element but I wanted the life and unemployment cover, I was suitable for the policy and I was quite happy that this would be front loaded on the loan where costs were clearly factored into the loan proposal and the was no pressure to take the product in order to get the loan, I really do not see how it was mis-sold. Just my take though.

I admit some of my criticism of it is people are not being given a choice to say there is no PPI claim and that after over 2 years of PPI claims being allowed since the court ruling, some IP firms have still not got their act together enough so people are issued with their certificates in a timely manner. There has been cases where 2 years after the payment or even after the CC has been issued, the PPI element is still going on.

Great to have a few more opinions on the subject though as I think it is quite an emotive element in an IVA and it was an excellent post Jouster.

Depth_Charge

Hi

One of the biggest issues / problems currently facing IVAs is the unprecedented drop in disposable incomes.

The rise in the cost of living is all too real and getting worse as it is the essentials that are being hit hardest.

Those in IVAs will be feeling the pinch or worse just like everybody else.

I have seen quite a few problems of this nature of late including people falling behind with priorities such as rent & mortgage.

The temptation or sheer desperation for further borrowing is a another issue that could risk a breach of the arrangement and potential termination.

The IVA companies (and DMCs for that matter) have a real dilemma here it is fair to say

It will be interesting to see what the response will be from the IVA companies to help their customers through this.

Perhaps there will be a little more emphasis on full & final settlements rather than terminations or never ending IVAs.

On the subject of PPI claims, this is where huge amounts going out the arrangements in commission & fees can hardly be in the interests of the IVAer as surely in some cases this money could make the difference of a full & final being accepted or rejected.

As I have asked and said before: how huge amounts of money in commission re: PPI claims can be in the interests of the IVAer or the creditors is beyond me - I was also going to ask how this fits in with independent, impartial advice as well but I decided not to on this occasion.

Also have you noticed that the secured loan equity release issue seems to have gone quiet or should that be something not to dissimilar to an old Jam hit song.

My take as always

DC

Depth_Charge

Jouster wrote: »

This is of course a key issue, but my own experience, for what it is worth, is that IP's are generally now much more willing to take on cases where disposable incomes are lower. Some of the bigger players will not take cases, still, where a certain payment level cannot be reached, as they feel that there is little "wriggle room" under that, which has some logical value. Maybe such firms should be avoided, and for anyone looking in at this thread and considering any form of debt solution it is absolutely key that if you have any doubts at all about affordability then for goodness sake get a 2nd, 3rd or even 4th opinion. My own thoughts are that any payment into an IVA, or indeed any debt solution, should be as low as it is realistically possible to achieve in order to minimise the risk of failure in the first place.


With a DMP of course, that much beloved tool of certain parts of the sector, that strategy would be, and is, very detrimental in terms of timescale at the outset. Paying, for example, £100 per month instead of £200 will of course (at least) double any timescale, but I feel personally that it is safer to do that and then let people build up at their own pace, if achievable, to reduce said timescale. Of course, it effectively matters not a jot in the same scenario through IVA as the timescale is the same regardless of payment level.


Not too sure of The Jam song reference, but I doubt it is Butterfly Collector or Man In The Corner Shop, which are 2 of my favourites.

Hi

Interesting stuff

Sustained affordability for those currently subject to IVAs is one of the big issues.

I suspect you might know the song.

If not, mmm, did they have a hit titled 'Going Underground?

Maybe that was the one that I was thinking about anyway

DC

UpToMyNeckInIt

Some very informative points made on the whole ppi saga, and IVAs generally.

FTR: Only just read your comments on my 'extensive knowledge and expertise'. - Thanks, very flattering!!!, but really quite untrue. I'm in the same uncertainty boat as most other IVA customers. Just trying to make sense of the whole thing like everyone else.

DC: Interesting points as always. You mention the 'equity release/secured loan' subject. I too have not heard much recently, and cannot help but assume therefore, that this only affects a very small proportion of IVA customers.

Do keep us posted if you hear any more on the subject. It would not surprise me if the IVA industry starts to re-word the equity release clause, to allow secured loans etc, if re-mortgages continue to be generally unavailable.

Jouster: Apologies if I a making assumptions, but it sounds like you are involved in the IVA profession - which is great, an 'industry insider' is just what this forum needs. If you don't mind my asking, what are your views on the use of 'secured loans' instead of 're-mortgages' come equity release time in Month 54? Are they (or likely to become) common practice?

I have to agree with comments made about the ever-increasing cost of living, putting a strain on everybody (and some IVA customers especially). Equally though, as IVA customers, we potentially have the ability to review our expenditure and consequently our IVA repayment - on an annual basis as a minimum.

The majority of the solvent population either have to cut back like us, or they ultimately rely on credit to sustain their standard of living. Not good, and I am sure that as a result, some of the second group will be joining us on this forum before too long!!!

Find_The_Real

Depth_Charge wrote: »

Also have you noticed that the secured loan equity release issue seems to have gone quiet or should that be something not to dissimilar to an old Jam hit song.
DC

I grew up with The Jam and the one I thought of was Beat Surrender when you said hit song, as they actually released very few singles of their albums.

Anyway back to the discussion, in my own take on the secured loan issue going a bit quiet could be due to lack of lenders in the market these days. The secured loan market has taken quite a hit over toxic debt, I think that also they may be a lot more choosy over who they lend to and I doubt very much they would even consider anything above an 70-75% LTV including mortgage amount, and if there was I can imagine the interest rate would be somewhat eye-watering.

I think they mooted the idea when they realised normal re-mortgaging was probably becoming near on impossible with mainstream lenders for those in an IVA only to find that it is now the same with secured loans as the market for those are also now much more prudent. How many people are actually successful in either a re-mortgage or secured loan in the final year, statistics on that would probably be very interesting.

I also think there will be a rise people seeking debt solutions in the near future due to the current economic conditions. If house rises continue to rise again then I can see the IVA returning in "popularity" as their equity rises in their homes as opposed to bankruptcy. However I can also see the DMP becoming the debt solution most people will opt for even if it is the wrong choice and would take far too long to pay off. Debt naturally scares people, a formal way to solve the debt problems scares people even more, so the DMP is a nice cosy solution that the creditors are most happy with as they get all the debt paid off.

Depth_Charge

Jouster wrote: »

Going underground, not a bad choice. Maybe I have been out of the loop too long, but I have no idea what any supposed issue with secured loans or remortgages is?

Happy to be enlightened.

Hi

Secured loan brokers & the 12 month extension clause maybe:)

Just my take

DC

Depth_Charge

Jouster wrote: »

Can you be more specific?

Hi

Not really, I think 'they' will get it and I don't need anymore letters, my drawer is already pretty full including a number from my own side

Maybe you could have a guess or two!

DC

Depth_Charge

Jouster wrote: »

As I say, maybe I have been away too long, but if anyone has any examples of malpractice or variation from original terms then I would be interested to see them.

Hi

Just read an interesting thread on the other forum (started today) about someone being advised to take a secured loan, wondered if you had seen it?

Reading your last post again, I also wondered if you could give us your definition of the 12 month extension and secured loans especially straightforward protocol IVAs?

I suspect you may have expected this type of question and scrutiny if just to ,balance' things up a touch, well if you did, then here it is:)

Could be more to come on this:) but again no surprise there maybe:)

DC