www.iva.co.uk

hi,my girlfriend is getting on an iva programme by a company baines and ernst,she has got a debt of around 15500,but she has been asked to pay an upfront admin fee of 490gbp,and also she was never told that her credited rating will be affected even after iva plan finished and one thing that i dont understand is that once she was told they will be taking her case on the person on the phone was asking for gurantees that is she hundred percent commited and wen she said yes he sounded so desperate to get her signature on the agreement and even though we got a postal strike all overthe country to be carried on for 3 or 4 mmore days he said he was gona pay a private courier from his own pocket to bring the agreement over for her to sign and he wanted her to sign it,put two post dated checks worth 490 ponds,(245ponds each) to be sent back to him by recorded delievery as he didnt want to loose the "checks".

to me it all sounds bit dodgy,we should have been the ones more keen after all its my girlfriends loans that will be taken care of but somehow baines&ernst customer service agents,and their managers seem more keen then us.is that normal behviour? and they said the admin fee will also be a non refundable when on the iva guidelines it says it should be returned.please help and advice us the best way forward and could you please let us know is that normal behaviour or not from baines&ernst co.thanx

Welcome to the Forum mhd,

Usually we advise people on this site to speak to at least 2 or 3 debt solution companies, this brings re-assurance of the option you should take and also cancels out any ill advice.

There are alot of companies that offer a fee so do not get put off by this, but I would not sign or send any money if you are not completely happy with their service.

It is possible that they were asking your girlfriend if she was 100% sure, as many people are so desperate for a solution to their debt problem that they don’t think through what it actually involves eg, careful budgeting, 6 years on your credit file etc.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

Hi
This is exactly the option I was given from Baines and Earnst, I actually have the courier coming out today. I felt the same, that they were wanting it more than I did, but after speaking on this forum about it I am alot happier.
They also want the fees, I will be paying with my debit card the two fees, as soon as the first one goes through my case starts, I understand they have to make money on the arrangement so am not too worried by this, also I have had a long chat with my advisor regarding this and had it emailed to me to ensure I know whats been arranged, any questions I had were answered professionally and quickly. If you want any more info feel free to email me or PM me if thats possible! Thanks

Be very careful, with the level of debt being £15,500 you are in no way guaranteed that an IVA will be accepted. If it isn't you will say goodbye to the £490. You should contact other companies as some do not charge you anything up front.

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

I agree. Its deffinately worth contacting a few compainies to be sure you are given the absolute correct advice and as Jo says, a lot wont charge an upfront fee.

Hi
if your girlfriends debt is £15500and they want £245 a month then over 60 months that works out at£14700 it seems quite low for an iva as by the time you add ip fees you will be paying more back than you actualy owe.
Did they go through all her options
.
Im no financail expert but i would consult a couple of other companys before you hand over the cheque,just to be on the safe side and to feel cofident that you are doing the best thing for you.

Tracy

Tracy

Hi
I agree with Tracey,with a low debt you should be looking at debt managent plan first before an IVA.Speak with several companies and the ones who post on this forum are all bona fide.If they all advise an IVA then you know that it is the correct route but you will be best to "shop" around for the company that you eventually choose.

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

Sorry I couldnt give you such good advice re other options, I was just letting you know it seems standard from my own experience and others I have read about!

It must be a new thing having to pay upfront fees with Baines and Earnest because 8 months ago when i started my Iva with them I didnt have to pay a penny upfront.

really? I think I shall ask them! Do you pay anything monthly, extra fees on top?

Personally I would not bother, he seems too interested in the signiture and the cheques, if you havent signed anything dont. Its a very low level of debt and I am sure you would have other options. Its a lot to you I know and its a stress for you, I understand that too, I am in debt myself but please think again.

There was someone on here the other day on benefits with this same company, she shouldnt have been where she was and they scared her when she wanted out. This would be a five year agreement for you and it would be tough, what the hell have they got to lose?????? They are already 500 quid up on your misery. No, walk away, they make me mad, mega mad.

lily

In my experience ... if your intuition is saying to you that it feels dodgy ... then it is. My advice would be to talk to a few other companies and go with the one that 'feels' right. All too often desperation over debt can make us make impulsive moves.

Wishing your girlfriend lots of luck mhd ... keep in touch, you are both amongst friends here.

Debbie

www.babynamings.co.uk

www.soulgrowth.co.uk

Sorry late in replying work nights just got in, no i just pay the agreed monthly payment.

If, like Gordon, the fees can be used in case of difficulties later on then I don't think it's a bad thing. However, if they are purely an admin or set up fee that won't be returned then I would walk away. If you are not comfortable with an IP at this stage then the IVA is unlikely to last the full 5 years. This person will be a big part of your life for the next 5 years.

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/

Agree please take advice from other sources.

Especially with the small amount of debt.

Could I ask who does she owe the money to because there are many instances when creditors will not accept an IVA.