www.iva.co.uk

Had an interesting email from CF a few days ago, appearing to offer the possibility of converting the remainder of your IVA into a loan. They state:

'If you have been in your IVA for more than 30 months, you may be eligible for an early exit loan from our appointed representative.

Exiting your IVA early will allow you to start rebuilding your credit score much earlier. Credit is a part of every day life, and can effect everything from your utility bill to your mortgage. Improving your Credit score will lower your monthly cost of living. Call today to see if you qualify for this amazing opportunity'.

Had this come from anyone other than my IVA provider, I would have dismissed this out of hand as spam.

But, have any CF customers enquired?

Anyone knows how this scheme works?

It sounds almost too tempting to be true, which means it probably is, but I would be interested to hear from any forum members/experts who have come across this.

Thanks.

For some people, especially those looking at an extra year for equity release, the figures could work out. However, you will, in the long run, end up paying more over 10 or 15 years.

Also it will not improve your credit rating any earlier, as the IVA will sit there for the standard 6 years regardless of when it is completed.

That statement alone would ring alarm bells with me -- but, ask yourself ... who really benefits ? The IP will get his fee anyway, and have to do less work for it ..... and maybe ( just maybe) a commission or referral fee.

Have to agree with Foggy.

I too agree with Foggy.

I have heard that some of these loans are actually unsecured. It makes no sense at all to me to take a loan whereby you repay more than you would if you stayed in the IVA. I also fail to see how a loan improves your credit file as it will be damaged for six years anyway.

Creditors must have agreed this as they will get their money early and they plus the lender and IP firm will benefit most.

That does seem ridiculous!

I concur with what has already been said.

"Exiting your IVA early will allow you to start rebuilding your credit score much earlier. Credit is a part of every day life, and can effect everything from your utility bill to your mortgage. Improving your Credit score will lower your monthly cost of living. Call today to see if you qualify for this amazing opportunity"
That statement is a lie, there is no other word to define it.
That alone would make me dig in and finish my IVA as I expected it to.
Surely there is now a breach of trust and at worst a breach of contract!

I haven't had that offer yet! I'm approaching month 54! Creditfix are odd!

Somehow I don't think you fit their criteria. Too close to the end.

Thanks for all the replies - very helpful as always. I too share the cynicism of this offer.

I especially disliked the claim about my credit score improving early, we all know that's nonsense. My only thought on that is that when my file improved at the end of 6 years, it will look a little more 'normal' with a well managed loan and credit card, than a recovered file with no credit record.

I am also approaching month 48 of my IVA, and my payments are likely to go up at review time due to increased net income.

Whilst wary of the potential pitfalls, the thought of going for this offer, particularly if it saves me going through equity release, and gets my name of the insolvency register early, is tempting.

I anticipate that this 'loan' would almost certainly be secured, so to hear from Michael that it may not be, is also a potential plus point.

My only decision then, (if accepted) seems to be to see how much more this loan - secured or otherwise, will cost me, over letting the IVA run its course, and if that is a price worth paying.

I'll give CF a buzz tomorrow, determine the costs/terms etc, and let you all know what they say.

I would say that it is always worthwhile getting the figures. As I mentioned, sometimes they stack up.

I can't get my head around the 'take a loan', I went in the IVA to end my debt roundabout that I was stuck on, not take a loan at the end!

However, like Foggy says it may add up for some, but look at it from all angles before embarking on the loan.

I do not want a loan but understand the pull of being out of IVA I am feeling it is endless at the moment, working towards 5 years then thinking of another year after .... Will be interesting to hear the terms

I can understand the temptation get out of an IVA especially if the loan repayments are lower. In addition there is no longer any requirement to pay overtime etc so there are potential advantages.

If the loan is unsecured to someone who has no property to protect or equity to release then I think it would be less tempting. Surely it would be better to just repay what is owed for the remainder of the term rather than taking out a new loan.

Find out what the figures are and what the offer is. If it is something worth considering you should shop around for the best deal and not just go with whoever CF recommend.

I was quite happy to do the extra year rather than remortgage. Another loan was never offered.

Totally agree with Michael.