www.iva.co.uk

Yesterday afternoon I received a call from MBNA telling me that they had been in touch with my IP and made them an offer of 40p in the pound. They called me to see if I wanted to accept this, and if I did could I persuad my other creditors as this would save me having an IVA on my credit file. Is this normal practice to try and cut out the IP?

That's an interesting one, and forgive me if I make an assumption or two.

I would certainly advocate a call to your IP to see if they actually did contact them directly, it may just be a last gasp ploy to tempt you to pay them direct of course (assuming you are not yet in an IVA)

Assuming (again)that it is a genuine offer, then by the principle of fair treatment it surely also assumes that a) all other creditors will accept 40p and b) that you have the funds available to offer 40p to all of them.

The question there, of course, is do you have 40p in the pound available right now or any means of obtaining it?

Regards.

I have never seen MBNA contact an IP directly to make such suggestion, but if they feel that this represents a better way forward thus avoiding a formal insolvency, then there is no reason not for them to make contact to at least discuss this as a possibility - as Size 5 says so long as this does not complicate matters with the other creditors or prefer MBNA.

You have to hand it to MBNA,they are so redolent with any measure that maximise their interest.The favour they do for the debtor is to not ruin your credit file and your credit can technically continue as no adverse Credit file entry to say otherwise. Neat. But what about other creditors - will they be reticent not making that IVA entry???

In a sentence this is a 'FF' settlement that cuts of all fees and intermediaries. But trying get other creditors to agree could be a hurdle??

Maybe MBNA will have their own inhouse insolvency next??

Size5, you are correct in your first assumption and I will call my IP now and find out if they did infact call. I will get back to you.

Well they did call, but only to find out how my proposal was progressing. Cheeky or what to then call me.

Incredible - would like to know if they have spoken to your IP and who is your IP?

I am using the CCCS(va)

What a cheek! They'll try anything won't they?

Good job you are on the ball Stirling.

MBNA have aways stressed protecting ones credit file, almost a fervent 'must do' in their correspondence with debtors and that is also seen extended in their DMP offers.I used to think it was just junk but now I give that thought some credence.

I am positive with them on this respect.It is powerful leverage in settling the debt.

I know it sounds like they are cutting out Ips in the deal but the debtor will surely benefit in getting back to the road to Home loans borrowing. With the negative soundbites on lending posted by exIVA people, this MBNA tactics in 'win win' settlement is compelling.

It will never take off, as other creditors are more entrenched in the 'traditional process' of handling IVAs through IPs and no under the table offers.

I know your IP and I will speak to her on this as it seems MBNA say one thing to the industry and then do what "they" want to do in conflict with their public stated views.

I don't agree with Kalla's views at all, and would just like to point out that IVA's can only be dealt with by an IP.

Anything else is just an informal agreement with your creditors.

the protection of your " credit record " is indeed a phrase I have heard often from MBNA .

Two points though - by the time you get down the road discussing this point with creditors - your credit record will be pretty well stained anyway - granted not to the extent of BR or IVA but it onkly takes about 2 to 3 missed payments before you get default notices winging their way to you - In todays credit enviroment - only cleaner than clean records are going to get any credit anow anyway - people with excellent credit history are getting refused .

the second point is ( and the one I made to MBNA ) was that it was easy credit that got me into this mess in the first place and credit is the last thing I need now or in the future .

I will ghad a caveat that in a few years time things might be different if and when I ever want to renegotiate a morgtage or get a new car - credit can help then - but I think - and I am dont want to talk for others - but having a dodgy credit entry is the least of my worries .

You only need one or two 'red' entries on your credit record, and no one will touch you for six years anyway, as gord has said.

I shall be interested to see my record once my IVA is over (and I can afford to pay Experian again!)

Gord,

One's credit file from Experian holds 36 months of information recorded by all institutions that you have made a payments to.O/D are recorded also.

The perfect credit case - all green flag entries on a month to month basis, but even if you had a few ambers in there - late payments or No payments in red, it is what each institutions records and the total impression it conveys in the 32 months.You should access your own file and have a look.The credit score is asigned by experian and is not simply counting colours.They [Experian] charge a fee for it.

The assessment of credit worthiness in the UK is unfortunately not as simple as to say getting 700 credit score points plus other conditions to get GM car loan as in the States.Decisions are more opaque with no explanation if you are refused.

No one can say they don't need loans in the future unless you are rich,and even the rich needs bigger loans.But if ones' credit is 'blacked listed' out with no debt - that needs to be fixed in the long run.

And Kallis,I don't subsitute half baked efficacy for hubristic opinions in any deliberations.Politicians constantly opining their sophistry with hilarity - in effect strutting out their serial incompetence in trying to manage indebtedness. In the world of Commerce and Business I like to think we have some salient hard truths to work with.

I am seeing none at the moment.