Raging Bull
Registered User
- Messages
- 389
A PIP can do many things in a PIA. Write down to MV, extend term, capitalism arrears and fix a rate all in the one pia if they thought necessary to return Debtor to Insolvency and keep them in their PPR
A PIP can do many things in a PIA. Write down to MV, extend term, capitalism arrears and fix a rate all in the one pia if they thought necessary to return Debtor to Insolvency and keep them in their PPRWell, now you have put your finger on it.
You will find the vast majority of PIAs, particularly with lowered interest rates (for the purposes of ensuring repayments are affordable for the debtor) are often "negotiated" down on the basis that they are proposing a variable rate to be applied in the debtors arrangement. In particular, with funds rather than banks. It is funds who primarily bought non-performing loans, and we need not explain the reasons why or how a large proportion of these loans stopped performing in the first place (read: thread title)...
Any information regarding the process leading up to and including this should be made available for the knowledge and benefit of those facing into arrangements that will allow the lender/vulture to "impose" excessively high interests rates on the debtor for the duration of the term of the mortgage on their own home. While they may now become solvent, they also may now be facing the same problems as before - presumably their RLE's have not changed, but their interest over the term may well be higher now than what brought them to insolvency in the first place. In this circumstance or under certain types of arrangements (e.g. typical arrangements with vultures), the debtor has no recourse to seek a fixed rate or seek a better rate from another lender now, or in the future. In particular, if their secured debts (e.g. their own home which "they get to keep") is subject to any write down as part of the arrangement.
No the Judge looks at the Debtor specific circumstances. What you talk about above has little relevance.This type challenge fails because of a previous error in judgement. That is, the sustainability effects on those whose loans were transferred to funds/vultures who are not subject to same regulations or in competition with any markets (the market is captive) and is refusing to fix interest rates because of their predatory lending practices.
No the Judge looks at the Debtor specific circumstances. What you talk about above has little relevance.
But everything is done on a reasonable basis, the PIP or Judge can't be blamed for price gouging caused by both Covid or Putin because the rate rises to date in variable rates don't have the justification in their entirety. What you will likely see is more fixed rates in PIAs to ensure greater certainty but by no means expect a Creditor to fall on their sword. The fairness of rate clauses or otherwise is best left to fspo. Personal Insolvency is not a route to litigation but a means of resollutionI am suggesting that specific circumstances have been overlooked, in the case of arrangements involving funds/vultures. It is either overlooked by the Judge or the PIP, unless the debtor is advised that specifically, with regard to funds/vultures, any arrangement will result in the debtor (now solvent) being subject to and completely bound to excessive rates (which are not even close to in line with the market). One might be forgiven for assuming what a PIA can reasonably achieve for a mortgage holder is that they do not end up in the same damn situation again, or worse. That's fairly relevant.
But everything is done on a reasonable basis, the PIP or Judge can't be blamed for price gouging caused by both Covid or Putin because the rate rises to date in variable rates don't have the justification in their entirety. What you will likely see is more fixed rates in PIAs to ensure greater certainty but by no means expect a Creditor to fall on their sword. The fairness of rate clauses or otherwise is best left to fspo. Personal Insolvency is not a route to litigation but a means of resollution
The best way around a clawback is to remortgage elsewhere when you credit rating improves.
Clawback is relation to sale but not remortgage
For the rate gouging a PIP can fix till the end of mortgage term for however long is needed up to life expectancy but no further unless there's consent
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?