They call out of the blue

[North East Derbyshire CAB]

Hi all,

Just wondering if anyone has read the article 'They call out of the blue' in yesterdays Independent on Sunday which we understand relates to an organisation called the Debt Information Centre.

Amongst other things we believe the article mentions the 'cold calling' of potentially vulnerable clients offering to put them into a form of Insolvency and so on-

We are a little concerned about the article and wondered if anyone has any information on the Debt Information Centre as we don't seem to have come across this organisation before.

For those who have not read the above article here is a link-

http://www.independent.co.uk/money/loan ... 90186.html

Following on from the new IVA protocol this does not make good reading to us or anybody involved in the IVA industry we would think.

[Adam Davies]

Hi
Interesting,and I see that any leads were being passed to Debt Free Direct,so there must be a financial link there.
I think,unfortunately,that we are going to see more and more reports of direct marketing as a direct result of the squeeze on IP fees,some larger companies need volume to make their business plans viable and will look at all lead avenues,some not as ethical as others.
Regards

[OPTIMIST12]

There are often stories or articles that paint a negative picture of IVAs and the Insolvency Industry as a whole. But I am sure that if you delve into any business of any description in the United Kingdom that you would probably find isolated instances of incorrect or mistaken marketing. I have no idea if this is particularly prevalent in the IVA Sector. What I AM sure of is that there are many many people like me who are grateful to have found the option of an IVA and are happily plugging away to get through that 60 months and hopefully start a new life at the end.

[North East Derbyshire CAB]

Hello OPTIMIST12.

We respect your opinion and sincerely hope your IVA, and for that matter anyone elses IVA reaches a successful conclusion with no problems along the 5 years they usually run.

We have already stated that in our opinion an IVA can be a suitable and indeed sensible option for dealing with debts in some cases.

Unfortunately we are facing enquires almost every week now from clients who are having problems with their IVAs and indeed we have read many posts on this forum relating to problems with IVAs.

After interviewing some of our clients it has been obvious that their IVAs have not been properly explained and other options have clearly not been explored. Some our clients have been extremely upset and angry both when they contact us and in some cases even more so after the have spoken with us. We are then left with the mess and problem of sorting out their debts often via the route they really should have had explained to them at the time of the original advice.

The above type of cases are putting further strain on our bureau with regards to the overwhelming number of enquires we already receive. Taking this into account when we see or hear of such articles and practices highlighted in our post we feel we have to speak out, especially taking into account the new IVA protocol. We would also hope that all responsible people within the IVA Industry would also voice their concerns and thankfully there are some that do as this type of practice can only damage the reputation of IVAs and may put off some people who would be suited into entering into one.

We appreciate your point that there may be isolated instances of incorrect marketing in other business but we do not work in other business's, also from what we are seeing at NED-CAB the problems with IVAs are not exactly isolated instances.

[go_4_broke]

Hi NED-CAB

I don't think anyone should be too surprised about this.

IVA's are odd beasts in that once set up they are highly regulated but substantially less so 'pre-sale'.

I remember reading somewhere that the cost of aquisition for an IVA (ie the amount of money it costs the company to get the business)is quite high, around £750. So a company that can just generate leads for IVA's is going to do quite well if they can sell those leads on, which I would guess is what 'The Debt Information Centre' is probably doing, or was.

Best Regards

[OPTIMIST12]

Hi NEDCAB -

I was very interested to read your post - I have decided to withdraw from the forum after today as I do not wish to risk upsetting or offending people and I know some of my previous posts have unintentionally done this.

I am so disappointed that some of your clients have not had the implications of an IVA explained to them. I finally - and belatedly - realised around the end of 2006 - that I had to seek a solution about my financial state. I knew NOTHING about my options - until some of my Creditors sent me a BBA leaflet called "Dealing With Debt" that put me on the right track. On the basis of this leaflet - and after seeking out some other sources - I contacted the CCCS. They were BRILLIANT - free - totally non-judgmental - no pressure - and with a down-to-earth business-like attitude that put me on the right track. They agreed that an IVA was an option for me and passed my details onto a well-known and well-respected IVA Company. In the meantime I had already approached another IVA Company which some may describe as an IVA "Factory".

This "Factory" (not my word) were great for me. We had 3 long telephone conversations to ensure that everything was correct for the preparation of my proposal. At EVERY stage the option and implications of Bankruptcy were explained to me. I decided to stick with the IVA route and received my proposal and Creditors Meeting date.

At the Meeting my IVA was approved by a small majority - the Modifications were read out to me in full over the phone.

I have so far made 13 monthly payments and have not encountered any real problems to date. My one query to my Company was following a Pay Rise - what was my new monthly payment? They replied rapidly and I changed my Standing Order accordingly. I can only hope that my remaining 4 years go as smoothly.

I think the CAB are brilliant - I know family members who have received invaluable advice from them. I am sure that they will continue to give brilliant advice to people in need and it is not good to hear that they are receiving so many enquiries from dissatisfied people in IVAs. I would just like to say that I have posted my experience in good faith and I hope that those who are having problems with their IVAs reach solutions as soon as possible. I know that the CAB will provide good advice. This Forum also gives many examples of organisations and individuals who are willing and able to help people.

I would also like to wish everyone on the Forum the absolute best of luck - I hope we will all reach a solution one day. I am sorry if any of my posts have upset or offended anyone in any way - or if I have erroneously said anything incorrect - that was never my intention and I apologise.

[Andrew Graveson]

Hi Optimist,

It's clearly a decision that only you can make but I think it would be a great shame if you withdrew from the forum.

I'm sure that many people who have visited this site will have been greatly reassured by your comments and then gone on to make the right decision for themselves with more confidence.

I think the vast majority of those who enter into IVA's (and other debt solutions) feel a great sense of relief and are satisfied with the service they receive both pre and post entering the solution.

The comments made by NED-CAB are obviously very significant as anecdotally it does seem that there have been issues with the way that IVA's have been set up in some quarters. Like with all industries there are a majority committed to providing a quality service and a minority who place their own commercial interests above the needs of their clients. NED-CAB I'm sure are at the forefront of the fall-out from this kind of poor practice and it's great that they are speaking out about it.

Whatever you decide I wish you the best of continued luck with your IVA.

[emma_t]

Hey optimist

I enjoy reading your posts and they are always helpful.
I also think its great the way the forum can debate issues as not everyone has tthsame opinion.
Please keep posting[:)]
Emma x

[aguise]

Hi optimist. Keep posting.
Not everyone has the same opinions. Your posts are your opinions and you are entitled to them. Others may disagree, that is the whole point of debating an issue it gives everyone different views and perspectives and can change their views. I am very pro iva, for me the best thing I ever did, I am sure everyone knows that, like anything there are going to be those misinformed, who didnt understand, so many reasons for it not being right for them. As Andrew says nedcab see the problems and distress all the time from those who have not received good advice, their view also is very understandable.
I am as usual rattling on , just keep posting mate.

Ang xx

[Adam Davies]

Hi Optomist
Remember that the nature of this forum will always be dealing with 'problems',the same as the CAB.
It would be good to have you on the forum defending the IVA,balancing out some of the 'horror'stories that we read about.
Regards

[Skippy]

Hi Optimist, it will be a shame if you stop posting. While I don't always agree with you (and I'm happy to admit that I often don't!) the good thing about this forum is that we can each express our own point of view, support each other and offer advice.

Whatever you decide I wish you luck with your IVA, and I'm sure that with your determination you'll make it through to 2012!

[Soulgrowth]

Optimist ... I always enjoy your postings and the subsequent valid debates they generate ... so please keep stimulating our thoughts.

I do think that to keep a healthy balance in the Forum we need a rounded view, it is only in this way the Forum can remain 'open' to ideas. I have to admit that there are some times when I feel I want to say something, but that it might not be deemed 'appropriate', and so I 'bite my tongue' ... but censorship is never the way forward to a open and honest debate and I trust that the powers that be, and Andy in his superb management and fair moderation of the Forum, will NEVER allow it get to stage where Forum members do not feel comfortable to post some sometimes radical ideas or thoughts that only serve to generate healthy debate ... otherwise our truly valuable Forum, where free speech is encouraged, will merely become a 'police state'

Debbie

[MelanieGiles]

I completely second the comments made by the other posters. Optimist you simply must not withdraw from the forum as posters like you serve to put forward inspiring viewpoints from a different angle - ie you are with a "factory" firm and are entirely happy with that service.

I do not agree with the way that some of the volume processors operate, and would probably not choose to become a "factory" myself, however for every disgruntled client there are many who are entirely happy with the services provided, are well informed and have made choices out of their own preferences.

I would also suggest that anyone who thinks they may have been mis-sold an IVA, recounts the thought processes they went through at the time of entering into the agreement, before choosing the IP firm to blame for bad advice which I continually hear.

Andy - on behalf of the forum regulars, could you please contact Optimist off line and tell her/him that their input is extremely valuable and that they have not offended anyone - this is a democratic forum for everyone to have their say.

[Soulgrowth]

Andy ... could I second Melanie's request that someone on behalf of the Forum contact Optimist offline please.

Debbie

[pixie]

Optimist - as others have already said - please don't go!
Your enthusiasm and positive outlook is priceless and very much needed and welcome. You have helped many people, me included.
Everyone is entitled to an opinion and not everyone will agree all the time! But that's what makes a good debate. We all have and will continue to have different debt journeys which shape how we think and feel about issues raised along the way.
Take care.