We have been asked to pay an upfront fee of £375 to start an IVA . It's the first company we approached and so I was wondering if this is the norm or should we avoid them?
speak with several more companies before going ahead, most will not take any fees before the IVA is agreed, after this any fees will come out of your agreed monthly payment and will be agreed and authorised by your creditors
I would not go with a company that charges upfront fees. There are many reputable firms that do not.
It is always a good idea to chat to a couple of firms, in any event, to get a feel for the one you can work with over 5 / 6 years in what is a pretty close financial relationship.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We paid an upfront fee and then discovered it wasn't to our IVA company but the sister company who then passed us on to IVA company, Wish I had found this forum before going ahead with IVA
I personally wouldn't pay an upfront fee, there are numerous companies who will act for you without this. Have a look around, ask on the forum if you want as to who we are with or were with.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I wouldn't have gone to a company who charged an up-front fee.
Some IP's ask for the 1st month before the date of the creditors meeting which is fair enough but before they start doing any preparation would put me off I'm afraid however genuine they are.
Like Welshwiz, i too paid an upfront fee - i was told it was instead of 2 months payments to creditors which was very misleading indeed. I never knew until much later that they were simply acting as an introducer firm and passed my file over to a different company then took the money i had paid as their commission - Avoid getting into this trap by finding a company that does not charge upfront fees but if they do then at least find out where the money is going and whether they will be supervising the IVA for you.
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
I think in hindsight it is easy to say you would never have gone with a company that asked for an upfront fee. In reality a lot of people going through the process of finding out how they can hold their head above impending and continual debt (including me), along with the sleepless nights and stress associated with the mess. Any lifeline thrown is a welcome one. I was also asked for 1 months upfront payment, as the first payment and refunded if the IVA was rejected; The refund promise was thankfully never tested in reality. I didn't know any better and would have sold my first born on EBay had that been the path suggested.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
"I didn't know any better and would have sold my first born on EBay had that been the path suggested."
I wish I had thought of that, but fear she would have been returned sharpish!!
But, yes, Merlin, I know exactly what you mean and this is why we hope that as many people as possible find us before they commit. Sadly many don't look for us until they hit problems
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
To be fair many independent advisers would have charged fees in the past and then passed suitable cases to IPs and been paid referral fees. They certainly earned their money and the packs that were supplied to IP firms made our jobs so much easier.
The growth of the call centres and large IVA players meant the advice would be given ' in house' and no fee was charged but in some cases I think the advice from the independents was better.
There is a difference between someone carrying out a full factfind and charging a fee as opposed to a firm sending a courier to lift your documents while asking for your debit card details.
I understand what you mean about independent adviser but the fact I paid upfront to a sister company of my IPS was not pointed out in the beginning as Merlin stated when you are in a mess with nowhere to turn and you are told you have to pay this fee before being passed to the IP for process and not knowing any better you pay up.
I agree. Had you paid a third party a fee for their time and recommendations that would be fine rather than what was effectively a hidden fee charged by the IP firm.
