www.iva.co.uk

Hi All

I know I've not posted for a while but I just wanted to drop a line to fellow IVA'ers. IVA's to be, IVA considerees and IVA completers, along with IP's and anyone else who posts on here!!!

Hope you're all having a lovely Christmas break and enjoying it whether or not its a little more frugal than previous years!!

I just looked at my bank today and saw my 10th IVA payment going out and I must say it did make me feel very happy - I cannot believe that it is nearly a year ago since I started this IVA! only 5 more years to go (we had NRock as a creditor so they requested IVA of six years instead of 5)!

I must admit Christmas did prove a difficult task, having limited funds but I left my Xmas Shopping until Thurs 23rd and although a little more stressful I did have a list of what I wanted for whom and which shops to get them from as I had been browsing leading up to Christmas so that I had an idea of what I could get for my money etc.....and do you know it was fab....

I went late night shopping on the Thursday after work - all the shops were nearly empty, everywhere had sales, and everything I wanted was in stock...and because I had waited I got most present at sale prices so it ended up costing me £60 less than expected so I went and treated myself to a Pandora Bracelet!!! Who says IVA's are a bad thing..I'd never had have the money spare to treat myself before - it would all have gone on the plastic! And do you know I really treasure it as it is the first treat I've had in months!!

So just wanted to share my merry christmas story and tips with you all and hope you all had a fab one too!!

xx

individual voluntary arrangements (IVAs), the popular alternative to bankruptcy, are in some cases being mis-sold by some debt advice firms that are too sales based…

advisers and consultants receives many calls each month from people being poorly advised by many, heavily sales based, debt advice firms persuading consumers that an IVA is right for them in circumstances where it clearly is not suitable.

This comes with the news that the OFT is reminding debt management companies that they also must not use misleading trading names and must make clear that they are commercial enterprises rather than charities or government services.

The reminder follows action by the OFT to refuse an application from Baker Evans Ltd to use the trading names ‘The Bankruptcy Helpline’ and ‘The Insolvency Helpline’. But it is clear that Baker Evans come under the same company umbrella as Blair Endersby and Baines & Ernst, both of which provide IVA’s, and are known in the industry as ‘IVA Factories’.

The OFT refused to authorise the use of these names because they could potentially mislead consumers into thinking they are dealing with an impartial, non-commercial or governmental organisations, rather than a commercial enterprise. Consumers need to be able to differentiate between the two.

Ray Watson, the OFT’s Director of Consumer Credit said:

‘Consumers must be able to distinguish commercial debt management companies from free charitable or government services. We will not agree to names that could mislead consumers into contacting companies when they might think that they are accessing free advice.’
Why use an IVA?

An IVA allows a debtor to reach an agreement with his or her creditors to wipe off some of the money owed in exchange for reduced monthly payments. The IVA company then formulates the repayment plan, typically lasting five years, with the creditors.

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.

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.

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.
Example of bad IVA advice

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.

in reality fees should be included in the monthly repayments of an IVA, not charged upfront.

there is concern that people may be being encouraged by unscrupulous IVA companies to commit to IVAs, even where this may not be the right course of action. These companies aren’t always properly informing their customers about the fees they charge for arranging an IVA, or about the adverse effects of IVAs on credit ratings.

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.

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.

we are frequently hearing from customers who are being told an IVA won’t appear on their credit rating when the reality is that it will. Some companies are giving the impression that this solution has a much smaller impact than it does. 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.

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’.

‘It is important that people seek independant, impartial debt advice and help, and people should always be fully aware of who they are dealing with’.

What a great post DA.

Merry Christmas to you and your dearest, and congratulations on your first (nearly) year down.

Hi debt attack - great post and enjoy the bracelet. Msi leadkings - you posted this days ago. Why still so negative in the face of evidence that ivas help people get their lives back?

Excellent post Debt Attack and I'm glad things are working out for you.

Msi-leadkings, if you are so against IVAs why are you posting on this site? As Andy pointed out last time you posted this is old news.

Because an IVA didn't work for him!....the vast majority of IVA's are the right choice and are NOT mis-sold.

Get real Msi and accept that the majority actually like IVA's.

I cannot understand how an iva can be mis-sold.The paperwork has all the details in place of the terms and conditions of the iva and i think if anything didnt look correct and by the book so to say the creditors would jump on this straightaway. The last thing they would want is the iva to fail,as bankruptcy or failure would cause them to receive little if anything.
The iva is a fair and most importantly legally binding way for creditors to ensure they recover some of their money and the debtor to contribute what they can towards their debt.
Msi-leadkings seems to be hijacking positive posts with information that is outdated and the wording changed to their point of view.
None of us are so flippant with our debt as to go into an iva without looking at the information we are given from our ip-who by the way explained every detail we didnt understand before we signed any paperwork and were always forthcoming with information.
Well done debt attack for your positive post- I think we all generally feel that paying for everything and saving for things without the use of credit is a somewhat unusual thing to be able to achieve in this day and age-when credit is so freely available.We should be proud that we are able to do this and those doubting thomases who post such negative comments on the forum obviously couldnt knuckle down and see their iva through.Those who think an iva is an easy way out of debt and cannot learn to budget and play by the rules they have signed for will find their iva will fail and should learn not to take their grievances out on those of us who wish to succeed in doing something about our debts.We are all making sacrificies to get ourselves debt free and negative comments wont undermind what we are trying to achieve.

MisLeadkings

Can I please ask why on earth you decided to post your nonsense against my festives post.

I would prefer you not to post to any of my conversations again. You're so negative that you have nothing positive or good to say!

well done to all of us newbies who have got through our first christmas credit-free.Also a massive thank you to the forum experts and the journeymen and women who inspire us to carry on with their wisdom and tips for success.You are all greatly appreciated- good luck for the coming new year.

well said DA !

Andrea, well done and i am glad you enjoyed your first credit free xmas. As you are only 3 months in, it may seem like a life time till the end. Believe me it isn't. I'am the other way round, 56 down 4 to go, and it doesn't seem like 2 minutes since i got the phone call telling me it had been approved. The time will fly, you will learn some good lessons, and it does get easier, because year on year your review will only take a maximum of 50% of any increase in salary etc, but don't be naive when you fill in your annual budget form, make sure you take into account all the extra expense such as the drastic increase in domestic fuel costs and petrol costs, and just for good measures we are all (IVA or no IVA) going to get clobbered on 4-1-11 with a 2 and half % increase in VAT on everything we buy, which in real terms will push the cost of living up by about 4% by the time the retailers have put on their bit as well. But good look and head down, you will be through the IVA before you know it.

thanks very much Howard for the sound advice-the run up to christmas was frightening as theres no plastic to fall back on anymore.Now we have gotten over the first major hurdle we do feel that we can relax a bit and are extremely smug that no nasty big bills are due come new year!!!!

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.

well said[:)]

Good for you debt attack. Did feel great for us to knowing that everything has been paid for with cash and no credit. Really holding ourselves back from buying a new t.v., what you can't afford you can't have and we have not got enough at the moment. Will keep looking at eybay!.

Happy New Year to you all.

Sam