New Petition -- please sign

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Foggy
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by Foggy » Fri Dec 01, 2017 4:53 pm
** UPDATE ** We have got the 5 supporters !! Thank you ! They are checking the petition (such as it is -- they don't let you write much ! ) and, hopefully we will have it published within a week or so --- then you can all sign and share :-)

I have raised another petition on the .GOV website, to get the matter of mediation (or lack of) for IVA users discussed. Below is the background as per the link in the petition. Below that is a link for the petiton -- it has to be signed by 5 supporters before it will be considered for publication --- so please sign :-)


"Record personal debt in the UK and it’s “solutions”.

Debt is increasing at an alarming rate in the UK, driven on great part by the last decade or so of austerity measures, seeing a real drop in household incomes, despite the increases in people working two, sometimes three jobs to make ends meet.
People are using credit (usually credit / store cards at a high interest rate) to buy everyday essentials like food. Many cannot make minimum repayments or the whole payment they do manage to make is eaten up by interest alone, so the debt never reduces.
There are several debt solutions open to individuals, including Debt Management Plans (DMP) , Debt Relief Orders (DRO), Individual Voluntary Arrangements (IVA) or Bankruptcy (BR) – the choice of which is dependant on a raft of individual circumstances.
This document will concern itself, primarily, with IVAs: Currently (Q3, 2017) there is a record high of IVAs being started with 15,523 this quarter. That is 61% of the total individual insolvencies in quarter 3 (25,479). Up 18.3 % on the previous quarter and total individual insolvencies are up 7.7% on the previous year.
Now, an IVA typically lasts 5 or 6 years and the debtor must use the services of an Insolvency Practitioner (IP). Once signed up an in the IVA they are bound to that IP, regardless of quality of service. However, the IP can pass them on (sell them!) to another insolvency firm with no consultation.
In the “credit world”, where there is a breakdown or dispute between a creditor and debtor, the debtor can turn to the Financial Ombudsman for mediation and a resolution. However, in the ever growing “IVA world” there is no such mechanism for mediation and resolution. The debtor has to rely on the insolvency firms internal complaints procedure and then, if they haven’t been beaten into submission, the dispute can be escalated to the IP’s regulatory body. All well and good … BUT … the regulatory bodies do not intervene. They will not alter or make an IP alter their course of action, even if proven incorrect. If the case is proven against the IP they will only “slap the wrist” and, possibly, levy a fine on the IP. A fine that disappears into their own coffers. The debtor gets no restitution nor is the dispute settled.
We demand that the government take this situation seriously – it will only get worse as more and more enter insolvency – and set up a body with a similar mantle to that of the Financial Ombudsman, to watch over the interests of those in insolvency, to mediate in disputes, ensure adherence by IP’s to agreed terms and to offer resolution / restitution if shown to be required. This can be achieved in one of several ways, including, extending the role of the Financial Ombudsman to include debt solutions, creating a new debtors advocacy service or extending the remit of the Insolvency Service to include mediation and resolution. "



Click this link to sign the petition:

https://petition.parliament.uk/petition ... 5Yjyo8DVEk

My petition:

Create a body to mediate between Insolvency Practioners and those in an IVA.

An IVA typically lasts 5 or 6 years and the debtor must use the services of an Insolvency Practitioner (IP). Once signed up they are bound to that IP, regardless of quality of service. they have no access to mediation. See another-petition-f145-t83980 for background.

Where there is a dispute between a creditor and debtor, the debtor can turn to the Financial Ombudsman for mediation / resolution. However, in an IVA there is no mechanism for mediation / resolution. The debtor has to rely on the insolvency firms complaints procedure and then the IP’s regulatory body. BUT … the regulatory bodies do not intervene. They will not alter or make an IP alter their course of action, even if proven incorrect. The debtor gets no restitution nor is the dispute settled
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MerlinL14
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by MerlinL14 » Fri Dec 01, 2017 7:41 pm
Done
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jonathah
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by jonathah » Fri Dec 01, 2017 8:29 pm
Done
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jonathah
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by jonathah » Fri Dec 01, 2017 8:33 pm
There's an interesting (well to me!) debate to be had about whether in some cases letting a creditor take you to the County Court would be better. It would cost less in fees, the judgement would be made on the basis of ability to pay and any dispute would go back to the court and be heard by a judge.

The downside is you'd be unlikely to get the sort of spectacular write-downs that are possible with an IVA and it wouldn't all be over in 5 years.

Sorry....I'll shut up
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Foggy
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by Foggy » Fri Dec 01, 2017 8:41 pm
jonathah wrote:
There's an interesting (well to me!) debate to be had about whether in some cases letting a creditor take you to the County Court would be better. It would cost less in fees, the judgement would be made on the basis of ability to pay and any dispute would go back to the court and be heard by a judge.

The downside is you'd be unlikely to get the sort of spectacular write-downs that are possible with an IVA and it wouldn't all be over in 5 years.

Sorry....I'll shut up


There are all sorts of possibilities for change -- the current "system" is not fit for purpose and has not evolved as flaws were discovered through use. The whole thing is in danger of being controlled by the creditors themselves (in a round about way) and removing what little control the debtor has at the moment.
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jonathah
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by jonathah » Fri Dec 01, 2017 8:51 pm
Foggy wrote:
jonathah wrote:
There's an interesting (well to me!) debate to be had about whether in some cases letting a creditor take you to the County Court would be better. It would cost less in fees, the judgement would be made on the basis of ability to pay and any dispute would go back to the court and be heard by a judge.

The downside is you'd be unlikely to get the sort of spectacular write-downs that are possible with an IVA and it wouldn't all be over in 5 years.

Sorry....I'll shut up


There are all sorts of possibilities for change -- the current "system" is not fit for purpose and has not evolved as flaws were discovered through use. The whole thing is in danger of being controlled by the creditors themselves (in a round about way) and removing what little control the debtor has at the moment.




You are on the money (if you'll pardon the expression) Foggy!
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luluj
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by luluj » Sat Dec 02, 2017 2:14 am
Done
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Foggy
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by Foggy » Sat Dec 02, 2017 8:56 am
"You have 4 supporters so far. If 5 people support your petition we’ll check it to make sure it meets the petition standards. If it does, we’ll publish it."

Thank you to the 4 who have signed --- one more and they will consider for publication. :shock:
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