Sunday newspapers 17/02/08

[North East Derbyshire CAB]

We have just read the article in the Mail on Sunday relating to the Insolvency Practices Council, and we would also mention that there was another article relating to IVAs in the Independent on Sunday that may also be worth a read to some.

To those who have read the above articles, we think that you would agree that they are not exactly favourable towards the IVA industry.

Following on so soon from watching the video footage of the 4th Feb Debt Debate, none of this makes good reading to us and we presume anyone else for that matter.

Just wondering if anybody has any comments or views on the above?

[emma_t]

Hi there

There is another thread about this topic I believe
http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=9419

Emma

[iva.com]

Dear All,

The commentary in the Independent on Sunday talked about an initiative that IVA.com has entered into whereby we provide applicants with a prepaid payment card when their IVA application is approved. These cards will be loaded with £50 to help those starting out in an IVA. Unfortunately this has been interpreted as a form of inducement designed to encourage individuals to enter into the IVA process.

We agree that providing cash incentives to follow a specific course of action is often inappropriate in the personal insolvency field. However, we believe this to be acceptable as there are stringent checks to ensure the suitability of applicants both in-house and at the IVA firms who we work with. Cards will only be issued once an application has been approved by an individual's creditors.

We decided to preload the cards with the sum of £50 as a way of thanking applicants for their custom. As this amount is often allowed each month for contingencies we felt this to be appropriate. At no time did we see this as a tool for encouraging people to choose an IVA as a possible solution.

While we believe that our intentions have been misunderstood, we appreciate that articles of this nature are unhelpful to the industry and for this we apologise. We also appreciate that our timing may have been unfortunate. We welcome any further feedback on this topic from forum members and will consider any that we receive.

Kind regards,
Terry Balfour
IVA.com

[whem]

in theory i think this is a good idea as it would relieve some of the inital 'shock of capture' of an iva with refrenece to debit cards as they are frankaly something that now days are needed for every day life however instead of putting 50 on the card why not use the fifty pound to pay for top up and purchase on the card which would be more benifical to the client in the iva could i just ask who the card is owned by and if you recieve commision on the card usage

[iva.com]

Hi Whem,

Thank you for your post. I am a little confused by your suggestion as the £50 will be for the individual to spend as they see fit. The cards will belong to the individuals holding them. We will not be receiving any commission on card usage.

Kind regards,
Terry Balfour
IVA.com

[Adam Davies]

Hi Terry
I think some reward at the conclusion of a successful IVA,with the original proposed dividend or more returned to creditors,would be worth considering and would,I believe,not be seen as an inducement by the media but a reward
Regards

[North East Derbyshire CAB]

Hello Terry,

Just to say we have read through your posts with interest and with regards to the first one we would say that it is a balanced and very fair reply with the second post self explanitory.

Just for curiosities sake though we were wondering if you have any comments in relation to the rest of the article.