Any ideas please on the best way forward for us ?

[Adam Davies]

Hi

If you do not comply with your IPs request then you can receive notice of a breach and ultimately your IVA can fail.

With regards to the suggested seven year loan are the payments capped at 50% of your current IVA payments ? and is your income likely to stay the same for the next seven years ?

Regards

[lifenoteasy]

Complain and also immediately complain to the insolvency service.

Also ask DFD to confirm that if your complaint is upheld and that you should never have been required to accept a secured loan will they indemnify or reimburse you?

[Foggy]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Andy Davie

Hi

If you do not comply with your IPs request then you can receive notice of a breach and ultimately your IVA can fail.

With regards to the suggested seven year loan are the payments capped at 50% of your current IVA payments ? and is your income likely to stay the same for the next seven years ?

Regards

The IP here is requesting something which is outside of the agreed terms. There can be no breach as the client has not failed to comply with the agreed terms -- assuming the usual remortgage or extend clauses it is the IP at fault.

[lifenoteasy]

Any new finance requires the permission of the ip.

I don't believe that it states that an ip can instruct you to agree to new finance.

There is a discussion on the board where it was ultimately found against an ip where it was found that someone had met the terms of the iva despite the fact that the ip had issued a breach notice and failed it.

[KAYKAY]

Have you checked your terms? I am guessing you started you IVA prior to 2014 when the new protocol came into place incorporating the use of secured loans. I do not believe your IVA company have the right to force you to do something that does not appear in you original agreement. I would write to their complaints department informing them of your intention to take this matter further. Go to the very top if you have to. I am sure they would not let you change the terms of your agreement and I don't think they can to.

[lilaclady2k]

Andy the term could be fixed for 12 months, 3 years or 5 years at different rates, but as I've said my husband is already 65 retirement age but plods on to help pay our way. Yet we are being told his pension and his state pension will cover the loan but what about the mortgage, council tax, fuel bills and so on...

I was thinking about seeing if we could find someone to buy our property and we rent it back if possible to try and get ourselves out of this mess....

Thank you all for your replies though much appreciated I will check the terms out this weekend and try and seak some advice...

[Michael Peoples]

Selling the property could be a mistake as the equity could be grabbed by creditors leaving you in a much worse position. Advise your IP that your husband cannot commit to working for the next seven years and you would like a variation proposed to extend the IVA by a year rather than having to take the secured loan.

It is possible that not taking the secured loan is a breach as I do not know your individual case and what was agreed but creditors are usually sympathetic to an extension.

If you do decide to sell it may be better to take the loan and pay off the IVA first. Then sell as soon as the IVA has been completed and any remaining equity would then be yours to enjoy. Selling now seems to me to be the worst option.

[lifenoteasy]

lilaclady2k - you might want to look at this http://debtcamel.co.uk/secured-loan-ivas/.

From what I can see your IP is proposing a variation to your terms without explicitly stating it.

You also have the ability to complain directly to the Financial Ombudsman - not just the Insolvency Service.

[longslog101]

Lilac,

Given the 'threats' they are now making towards you I would now only communicate with them in writing only, don't discuss anything further on the phone, so all communication is recorded and can be referred to the relevant body.

The odds are given your IVA is old (and if you have not signed some paperwork in the last 2 years that agrees to different terms) that all you need to do is extend your current payment for another year instead of equity release, in the event you cant get a remortgage (if there is enough equity in your property).

As others have said (unless you have signed anything that agrees to it) YOU MORE THAN LIKELY DO NOT HAVE TO TAKE A SECURED LOAN AND THEY CANT LEGITIMATELY BREACH YOUR IVA if you don't.

Also as others have said, you should now initiate a formal written complaint against the company and I would also log the complaint formally WITH THE GATEWAY against the company letting theM know what they threatening (which in all likelihood is outside the scope of what they are allowed to to).

Apply for your own remortgage rates on a few sites and capture/print the reject screens that shows you're not eligible for a remortgage, you have then more that likely complied with the terms of trying to secure equity release through a re-mortgage and then and only then if there is more than £5k equity per head should you have to extend, if there is less than £5k per head you shouldn't have to extend either.

Here is their complaints procedure, http://www.debtfreedirect.co.uk/complaints/ for the internal complaint.

I would also refer them to this discussion in your communication

And here is where you make a formal complaint against the IP which will draw the regulators attention to what the firm are trying to do.

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

I am not sure who there authorising body is, the way to find out is t google the name of the insolvency practitioner and then it will list who their authorising body is. IT is important to log this one so DFD get looked into over this, this practice by firms is becoming far too common.

I guess that adds DFD to the list of companies to avoid......

It makes me so angry to think how many people they must be doing this to who just agree it out of fear !! [}:)][:(!][:(!]

[Foggy]

Good post Longslog.

BTW you no longer need to know which regulatory body is involved as the Govt Gateway filters, notes and passes the complaint to the relevant body itself.

[lifenoteasy]

What seems to be happening that there has been a policy decision made in certain companies that has resulted in potential changes to the agreed IVA.

Rather than notifying all people that they supervise (we are no longer clients) they have decided to deal with this on a case by case basis.

In part this will be to lessen the potential negative feedback and ensure that there is little variation between agreements that they now supervise.

[longslog101]

Lifenotsoeasy,

Yes it would appear so, but as we know no firm can enforce a change to what the client is actually bound to without their explicit agreement and any changes they are asked to agree to must be clear and concise.

I am actually at the point now where I think I'm going to write to the insolvency service CEO directly and refer them to the relevant discussions on here and my concern that these companies are in effect doing to the industry what banks did years ago with their charges that lead to the PPI fiasco, the future will be did any insolvency firm cost you excess money that you didn't have to pay !!

Her name is Sarah Albon, I will let you know what she says:

https://www.gov.uk/government/people/sarah-albon

[longslog101]

P.s. Even if DFD back pedal big time you should still make a formal complaint, it is only by drawing attention to such things that they will be changed and potentially the company challenged over its handling of such occurrences, imagine if for your one reported occurrence there are another 100 who were too scared and just did it, an audit would uncover such occurrences and more this likely DFD would be in a lot of hot water and more importantly many consumers due a sizeable rebate and freed from loans they have unethically been told they must take to avoid a breach.

I also wonder if being "forced to take a lone" for fear of breaching an IVA without impartial financial advice would be something the FSA would be interested in.

I know, I sound like a broken record, but as in "hot fuzz", - " for the greater good -arrrrrrrrr " [8D]

[lilaclady2k]

We are being emailed now by select partnership operations manager, who wants me to make contact to review our case!!
My head is spinning with all this, i feel we are being bullied into excepting this 7 year loan, for fear of being given breach of notice on our IVA.
We have never missed a payment in the past, so i dont consider myself as a bad payer.
We are told by DFD we cant take out any loans yet here is DFD encouraging us to take out a loan for 7 years. So total years of paying would be 12 years.

As i said im going to check out my paper work this weekend and go from there.
DFD and select partnership even asked me if i had anyone who could lend me the money. But i dont...

One minute DFD are telling me its not feasable but then they back track saying it is...does a 65 year old man want to be paying a further 7 years?

What happens if we fail that he or i become ill, do we loose the house then if we fail to pay? Am i not getting myself back into finacial debt again?

I have also received an email previously (may) from a customer support Advisor confirming our last payment to DFD was November 2015...?

Thanks again for your advice, we will put the idea of selling up on hold, unless this becomes our only option.

[lifenoteasy]

I take sides - so from now I won't be referring anyone to ask the expert.