Received my proposal from CCCSVA today - on initial check doesn't seem to mention anything re. annual reviews; also points out I may have difficulty paying into IVA if mortgage rate rises, but can such a rise be reported to the IP to see if an adjustment can be made though? (I'm sure creditors would want to take any increase in income if rate fell, for example?)
I also have a mysterious unsecured loan on my listing with a bank I do have an account with - only a small amount - thought about what it could be, then remembered a couple of months ago this bank gave me a free account upgrade which included a free £200 overdraft facility - and checking statements this has slipped into this on a few occasions but never for more than a couple of days until normal credits have put the account back into the black.
Could this be the mysterious entry? Would the overdraft show up on a credit report if run by CCCSVA? The fact is, the account is in credit now and I will be asking for it to be returned to the basic account type with no overdraft facility. I am however worried as I never thought about this as being 'credit taken within the past 12 months' when discussing matters with CCCSVA as it was a simple free account upgrade - should I now inform them of this, or will it be okay as theoverdraft not now in use and account to be changed back?
The propoposal should definately refer to annual reviews - have you checked the terms and conditions which should have been sent out with it - and it is presented in line with the IVA protocol 2010?
Discuss the mystery account directly with your IP for further clarification.
Thanks Melanie, I will check it all again carefully later.
Can anyone tell me if you can ask for a review of payments into an IVA if mortgage payments rise? And, would the upgrade of the bank account to one which included a free overdraft count as additionla credit taken withiin the past 12 months?
If there are any changes during the IVA the payments can be amended. This includes mortgage payments and when interest rates do start to rise a large number of people will have to have their payments reviewed.
However, interest rates will not increase until hopefully the economy improves so increased earnings may offset some or all of the increased mortgage payments. There is no point in worrying about it now as it will be sorted later.
The bank account issue actually seems a bit bizarre for two reasons. Firstly, if it is your normal account, the bank will close it when they receive a copy of the IVA and you will have nowhere to bank. Secondly, having credit in the previous twelve months is not a bar to an IVA and anyone who says otherwise is talking complete rubbish. Almost without exception, clients have obtained credit in the last twelve months and the money used to finance other credit commitments or just to pay for living expenses. Why did anyone mention this to you?
