font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by stormsylv
Hi
After reading this post I would be very interested to hear an experts view on this 15% reduction rule.
Even though it doesnt affect me as my payments never had to be reduced below my original monthly payment, I always believed that it was at the IPs discretion whether to allow a reduction of up to 15% without adding on extra payments at the end of the term to compensate the shortfall.
If it was the case that the reduction had to be made up at the end of the original term, would a meeting have to be called to agree to the extension?
Im not giving an opinion on this matter but I am quite interested.
Hi, I believe the IP has the ability to extend repayments by an initial six months to recoup any shortfalls and if that does not clear it then they can do another 3 months on top of that. All this can be done without going back to the creditors.
Our understanding of this at the time was that it was intended to allow the IP to recoup payments missed not to recoup shortfalls.
We always felt that any reductions, due to no fault of our own, were covered in the 15% guide so were happy when initially considering the IVA and the impact of future mortgage rate rises.
Over the last few years everything has gone up in price, my income has come down and our I&E has not changed as we wanted to get as much back to creditors as possible. Now that we finally do go for a reduction to be told yes but you will be paying for longer is quite hard to take..
Concerned to note that some of you folks under IVA Protocol type arrangements are being told that you have to extend to make additional payments to make up the shortfall. This is not necessary unless any of your creditors specificially modified this in, so do ask your IP to confirm what authority they are relying on.
Hi Melanie me again, when we started with GT the sent us a copy of their standard terms and conditions document, the edition supplied is their August 2008 one.
Within this document there is a clause which says;
The supervisor may, if he/she thinks fit for the purposes of fulfilling the arrangement, extend the arrangement by sending a notice saying so ("an extension notice") to you and to all creditors. This may be done either once or twice: first for up to 6 months and next for up to 3 months.
Its as I have said for a while its as if the IP's just make it up as they go along and charge each person in an arrangement what they feel they can get away with based on what the individual has to loose at the time..
Last edited by nickjohn on Mon Aug 20, 2012 8:18 am, edited 1 time in total.
