Effectiveness of IVA firms debt strategies querie

[scaredkez]

rant welcomed lol, the thing is people look for help and take the first hand offered, now how many people out there actually know what an IP is? i certainly didn't, until i started my journey, so that's why it is so easy to include the middle man!!
and this is where it has to stop, you should be able to contact an ip directly, but those who are in debt don't understand this, it is fine for me to sit back after the mess and say this but, i have been in the same boat as those who are desperately seeking help and would take any hand to help if it made sense to me at the time, hindsight is always a good thing yes?
its like in my game when someone has toothache, why do they wait til 5pm to do something about it ?, but they are glad of the info regardless of what you say, because you work in the dentist and you know, not always right of course not taking the word of the professional, but thats what happens to us in debt, you take the arm of ofference because they seem to know and can help but again not always right,
we the layman can't always be blamed for taking bad advice, its the services of the middle man that can, those ones who say of course we can deal with it and sort it and when you know no difference who are you going to believe when desperate?
it certainly is a fine line!
kerri


Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[catullus]

I agree with everything that you say kerri.

My rant was directed at "knowledgeable" journalists and CCCS who promote the myth that it is the IP's who are doing the overselling. In the main , nothing could be further from the truth.

In the meantime the poor bewildered debtor will take the first kindly hand that is offered to them and that's what the middlemen exploit.

[scaredkez]

i know catullus, but it's you the IP'S that come in for the battering when things go wrong, not the services through these iva factories that do, i was just trying to put it in lay mans terms, debt is a rough ride for those who are in it!!
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Skippy]

I agree Catullus. I wish I had been more clued up about IVAs - I would have gone straight to a local IP rather than paying out more money than I needed to (or could afford). Sadly I didn't know about this forum then, otherwise I would have done things differently.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[lily]

Skip, how can we be more informed when the 'front liners' treat us like cattle? It really is a mine field. Furthermore how many of us are comfortable talking about our (shameful) debt problems? (pre forum) How many out there do not have the internet and are suffering in silence? Finding this forum comes too late for so many, if at all.

The correct information should be available to make an informed choice before anything else is done. Take away the 'vested interest' and that just might happen, eventually.

lily

[mikebdomain]

I read with interest that;

Responding to figures released by the Insolvency Service showing that almost 3,500 people have been declared bankrupt in Scotland this financial quarter, Scottish Liberal Democrat Schools and Skills spokesperson Hugh O’Donnell MSP has called for debt education to be introduced to all Scotland’s schools, as encouraged by the previous administration.

Commenting, Mr O’Donnell said:

“These results suggest that one Scot every 45 minutes is declared bankrupt. The SNP Executive must act now to tackle this worrying increase in insolvency.

“Liberal Democrats want to see financial education introduced at an early stage in all schools across Scotland. Improving children’s understanding of money management would be a good first step to tackling personal debt in Scotland.”

What about debt education in the whole of the UK...

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Mortgage Broker
Specialising in adverse credit.

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[lily]

Brilliant idea. Credit is so easy and kids are given loans and overdrafts during further education. Debts screws you life up and insolvent people are getting younger and younger, it seems.

Knowledge about what could happen gives the person a chance to avoid it.

lily

[kpw]

A word of support for those working for DMC's, and believe it or not there are good, knowledgeable ones out there. These companies refer qualified clients to some of the smaller IP companies who do not have the massive advertising budgets available. They have good working relationships with IP firms and the subcontracted fees charged by the DMP are included in the iva proposal and taken out of the nominee fee and not additional to it.This is specified in the proposal. So please stop ranting about companies who work with customers, refer them to a IP and are remunerated on that basis. Whether we like it or not 'middlemem' exist in all walks of life. Many IP's get good qualified leads without the massive advertising thay would have to get into. May i suggest that one of the developments that has led to many of the problms has been the avalanche of recent, what i would call throw it at the wall approach and see how much sticks approach, advertising in the iva market place.

[Adam Davies]

Hi
I,ll just add a couple of points and get myself crossed off Catullus,s xmas card list.
Everyone in the debt industry must take some part of the blame for the poor perception that the industry has from journalists and some of the public.As I sad before we can blame DMP companies but all IVAs are proposed by a qualified IP,and you have NR saying that 9 out of 10 IVAs that they see should never have been proposed in the first place.
Now we all know that the unregulated debt management companies have been a large part of the problem but so have he creditors for easy lending and SOME of the IPs for proposing IVAs that are not in the best interests of the client and just as importantly not ensuring that the debtor is fully upto speed on exactly what they are agreeing to.
We need all people with direct contact with Joe Public to be trained and monitored,we need a thorough fact find and we need IVA providers to be approachable throughout the five year term.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[kpw]

Hi andy
at last a much more reasoned and sensible approach.
You are absolutely right. A thorough fact find is absolutely vital done by suitably trained and qualified people which I suggest should be done face to face with the client.The truth of the matter is that if banks and lenders did this with customers before lending money then they would not be able to lend in the way that they do. And this is in a 'regulated' market. Regulation is only as good as it is answerable. My wife is a teacher. 5 days notice of an ofsted inspection by a team of govt inspectors. Thay can and do fail and put on special measures many schools.All school ofsted reports are public viewing on the internet for all prospective parents to read or any body else for that matter. This is true regulation. I suspect that the debt industry would shy away from such a process. However self regulation would be a way forward but it would involve all parties, particularly,IP,s an DMC's and creditors working together for the interest of the client and stop arguing against each other as to has the moral high ground.

[mikebdomain]

A thorough fact find is absolutely vital done by suitably trained and qualified people which I suggest should be done face to face with the client.The truth of the matter is that if banks and lenders did this with customers before lending money then they would not be able to lend in the way that they do. And this is in a 'regulated' market.

Second charges and secondary unsecured 'together' products are NOT regulated by the FSA.

First charge mortgage providers/brokers/packages
All 'first' charge mortgage products are only given on the basis of a full fact find carried out by a qualified, suitability experienced mortgage advisor, who has to constantly prove continual professional development and knowledge of products and be deemed competent by the FSA. Company officers that employ mortgage & general insurance advisors must also prove their suitability to do so, and be authorised and deemed competent by the FSA.

Please do not tar us all with the same brush…


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LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
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[kpw]

Hi
Point taken but the reference was meant for unsecured debt and not at first charge lenders. Recent figures continue to show enormous levels of personal debt and the problems it is causing. Where regulation exists let the public have access to its findings so they can make better informed decisions about the products they buy into.If this information is out there then how do we find it?
Do the FSA publish a list or details of companies perfomance or whatever criteria they base their judgements?
Will each company provide this information if requested?

[mikebdomain]

Exactly the point - unregulated financial ‘advisors’/lenders and (mis) advice….

As far as I am aware the FSA does not publish firms performance criteria, they do however publish information about fines and disallowed companies and individuals.

The criteria for awarding authorisation? – feel free to read the handbook: http://fsahandbook.info/FSA/html/handbook/

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Adam Davies]

Hi
Mike it,s aimed at the unsecured lenders,I consider all secured lending to fall under the mortgage industry and as I have already stated I would like to see the insolvency industry regulated the same way as the mortgage industry.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[kpw]

hi
as andy says we are looking at issues related to unsecured lending not the mortgage industry particularly first charge lenders. Although there is an issue with second charge or secured loan companies.
As far as the unregulated market is concerned reputable DMC's are all for,or should be, proper and thorough regulation as is the case with the mortgage industry. At present what is out there is limited to the debt management guidelines issued by OFT, operational practices which should be managed in line with a companies consumer credit licence and a statement of good practice that a company should make its clients aware of. There is further progress to be made but as I said it involves all interested parties getting together and sorting it out. If not then perhaps some sort of independant body, similar to the FSA in the financial sector will need to be set up with some sort of legeslitive framework. The vast majority of people will not have access to iva legislation to help them out of debt and the siva will address this to some small extent. But there will be a lot of people out there needing advice and proper help and iva's will only be suitable for a small proportion of them.