www.iva.co.uk

Northern Rock - Rejection of IVAs

Over the past 18 months Northern Rock refused perfectly viable and feasible IVA’s which has resulted in many thousands of individuals and their families suffering considerable anguish and anxiety. Their stance goes against the British Bankers’ Association, guidelines to which they, as a member subscribe. Under this code of conduct they are expected to look at individuals in financial difficulty both 'sympathetically and positively'.

Their approach also flies in the face of the legislation introduced by the Government under Part VIII of the Insolvency Act 1986 to assist debtors who find themselves financially stretched as a positive way forward for debtors to avoid bankruptcy.

I am looking for an assurance from the Government that now that they have control of Northern Rock they will review the Bank’s current policy of refusing debtors the right to propose an IVA and introduce measures to ensure that IVAs are not unreasonably refused in future.

On 21st February 2008 I wrote to the Prime Minister, Chancellor of the Exchequer and Ron Sandler of Northern Rock. Today I received a letter from the PM’s office; the author of this took 7 weeks to respond and has not answered any points raised in my letter. A copy of my letter to the PM can be found at the bottom of home page of my website.

I now have interest from numerous national television channels regarding this matter and to progress it further I need cases, details of those that have had their IVA rejected by Northern Rock. I will be collecting the details of any individual that wishes to help through a link on www.debtwizard.com . Look out for the pink Northern Rock logo on the home page.

I respectfully enquire if you know of anyone that may be able to help; I already have numerous cases of my own but need more to build a strong case for a change in policy.

Thank you for reading this and I hope you will be able help.

Hi Mike

great to see you on the forum.

I have a couple of cases re Northern Rock which in reality would be perfectly suited to an IVA rather than alternative solution.

I will drop over the details for your files and seek client authority incase you need further info.

Take care & speak soon

Hi
Good luck Mike
Regards

Hi Mike,

Good on you for pluggin your site. I support you in your efforts to bring the despicable attitude of Northern Rock to the public Domain.

I have previously been involved in similar representations but so far to no avail.

Well done mate !

Hi Mike

I just wanted to say good luck in your endeavours ... your website was a great help to me in the early days of seeking a solution for my debts.

Keep up the great work

Debbie

Hiya Mike, good luck in getting some straight answers. Hopefully NR will change their policies in favour of debtors.

I posted this 13 months ago, hopefully 'under new management' they will buck up! "Northern Rock, is it me or are they not too bright? seems that on these forums loads of potentially successful IVA's are failed because of Northern Rock. Surely by them refusing it lets down (not only the debtor) but because Bankruptcy may follow stops the other creditors getting 'something' instead of the 'nothing 'from BR - what is it with them?"

hi Mike my IVA was acepted by NR ON 25th March i owed 21k they were my main creditor they voted in favour for my case through DFD

Just read the PM's 'reply' and 2 words came to mind... "FORM REPLY".

What a joke.

Hopefully someone will give you an actual reply once the media gets their teeth into it.

I have my creditors meeting on Monday with Northern Rock as my biggest creditor by far (I owe £27k). I think it will be rejected as I am not offering an awful lot so I will let you know once I know the outcome.

Hello everyone

First of all a big thank you for the response I have received so far, I now have several cases to begin working on, and one individual that will actually be filmed.

In all the cases each one has had their IVA rejected by Northern Rock (being the principle creditor).

I still need more cases, both before and after the date of nationalisation, 22nd February 2008. Both periods demonstrate the woeful conduct of the past board of Northern Rock as well as the present policy which comes under the Government. So the more cases I can get, either side of the date of nationalisation will only help to add to movement for a change.

Following the reply I received from the Prime Minister on the 3rd April 2008, I have since re written asking the PM's office to review their letter as a matter of urgency and respond to the issue raised rather than just explain why the Government felt it was necessary to Nationalise Northern Rock. I have also had to write chase up letters to both Alistair Darling the Chancellor of the Exchequer and Ron Sandler, newly appointed CEO of Northern Rock, as neither has replied let alone acknowledged the letters of the 21st February 2008.

If you are interested then you can see the letters at www.debtwizard.com bottom of home page, if you wish to let me know about your rejected IVA, whether you wish to be filmed or not, then click on the link at the pink Northern Rock logo on home page.

Unfortunately some debt forums will not allow the posting about Northern Rock. I understand this to a degree but still found it disappointing. However, your forum has stood out as the one that really wishes to help those in debt through your support of this issue.If you are able to spread the word then please do so. I need many more cases.

Finally, research at the IVA forum on the 29th January 2008, which was held to launch the new ‘protocol IVA’ and attended by all the major banks, credit card providers and debt management companies in the UK, suggests that as many as 20,000 individuals may have had their IVAs rejected during 2007, mainly by Northern Rock.

Many thanks for your continued support and congratulations on having the forum nominated in the category of "Contribution to the Credit Industry", a worthy contender if not favourite.

Many thanks Mike
Regards