Hi everyone, and seasons greetings to you all!!!
I am going to get on my high horse here, if I may, with msi-leadkings and answer some of his points directly.
"We have seen IVA applications increase in the last two years, but we are also seeing record numbers failing and being terminated. They are popular because they avoid the stigma of bankruptcy, but because they have not been advised properly they are totally un-clear on the other solutions that may be available to them, including bankruptcy which is now soon as a recommended debt solution."
Who, exactly, is we? As these comments are not in inverted commas then assumedly they are your own? If so, who do you work for? Overlooking that the Insolvency Service still describes Bankruptcy as the last resort, who has decided that bankruptcy is a "recommended debt solution" per se?
"Please note that IVAs are not suitable for everyone and come at a price with most firms charging huge upfront fees of up to £2,000 before work is commenced. These fee charging rogue companies are misleading their clients who can get a better service for no cost upfront."
I can safely say that I personally know of no one that charges £2k upfront for an IVA, where on earth you get "most firms" from is beyond me, however if you do know of some then please name and shame them here. Some firms WILL charge upfront for the work that they do, and that is perfectly legitimate as long as it is clearly spelled out initially. After all, if you instruct a solicitor to act for you, a profession not too dis-similar to IP's, then you would not query them charging you in the event of a loss. However, a lot of firms will not charge at all, and some will want a payment prior to creditors meeting, on the understanding that it is refundable in the event of a meeting being unsuccessful. You seem, at best, to be highlighting a very small minority and ignoring the vast majority, whilst at the same time deliberately giving the impression that it is the majority. You should have the good grace to acknowledge that that comment is, at best, erroneous, at worst deliberately misleading.
"There are set criteria which someone has to meet before they are put on an IVA. One of these is that they have to have at least a surplus income of £200 a month at least. You must also have at least 3 separate creditors."
3 points here. Rubbish, complete rubbish, and total drivel. You don't have a clue what you are talking about and I will not dignify this with any further comment.
"One horrific example of bad IVA advice is a nurse based in Cardiff who contacted a debt company after seeing a tabloid advert and was advised to apply for an IVA. She then contacted Integrity Debt Solutions because she was concerned that her monthly repayments were unaffordable – they had been assessed on income that included her son’s disability allowance."
DLA payments should not be used to assess affordability, but the creditors main representative TIX currently want a full breakdown of exactly what the allowance is spent on. I personally feel that it is very unlikely that she contacted the firm you mention, they normally trawl the Insolvency Register and so it is much more likely that they contacted her. Asuumedly, before taking a hefty fee for something that she could have done for herself for nothing, they mentioned that she could do it for herself? No? Quelle surprise.
"Debt advisers are concerned about the quality of advice given by IVA advisers to consumers. Firm action must be taken against any IVA company found to be issuing false or misleading advice. Not only this they are also seeing a rise in poor advice from charities offering debt advice, but then passing people over to IVA Companies who have and ‘arrangement’ with that charity."
Which debt advisers? I thought you said we were all sales based? Details also, if you don't mind, of such "arrangements".
"People with debts are morally obliged to repay them. How much they repay depends on their circumstances. We conduct a thorough review of their income and outgoings before contacting creditors. It is not right to help people avoid their legal liabilities."
Again, ignoring the semantics of "morally" and "legally", who is we?
"While all IVAs must be sold by a registered insolvency practitioner, there is no regulation of the companies employing the practitioners or of the front-line staff."
Once again, complete drivel. If there is no regulation then assumedly the OFT would not get involved? That is quite apart from all the other governing bodies that IP's are regulated by. As a debt advisor myself, I cannot work without the formal Cert Dr qualification, and most firms are also working towards the same, or similar, qualifications for not only advisors but back room staff as well.
"we strongly urge people to weigh up all the options before signing up to any type of arrangement. ‘If you have a debt problem, we can help to negotiate the minefield of options, giving you clear, professional and impartial advice’."
Again I ask, who is we?
I don't normally rise to the bait of a post of this nature, however as any member of the public may view this then I feel it is important to set the record straight.
Regards.
Last edited by
size5 on Wed Dec 29, 2010 5:24 pm, edited 1 time in total.
