Why are they so many cowboys in this industry?

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Sinking Fast
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by Sinking Fast » Thu Jan 21, 2010 8:48 am
Hi all,

My background is Construction, and as been for the past 23 years. In this time I have encountered some of the most hard-nosed crooks you could ever wish to meet.
Know inquiring about an IVA, I see the Insolvency industry also as its fair share of crooks as well.
I spoke to one company, whose name I shall withhold, who said I need to pay £670 per month for the next 3 months, and then this will qualify for me speaking with an IP. Another company stipulated that 80% of my debt will most definitely be written off!!

It seems that thankfully it is the minority of companies who will try and shaft you when your down.

Where is the regulatory bodies covering the IVA practice?

I would love to hear an experts view on this matter.

 

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Max
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by Max » Thu Jan 21, 2010 9:01 am
It looks as if you had the same experience as me with some IVA companies - what some of them told me was total rubbish. Fortunately I was advised to go to Melanie Giles - glad I did - my major creditor told my wife that I was in the hands of an honourable IP and thus they helped me.

 

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Michael Peoples
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by Michael Peoples » Thu Jan 21, 2010 9:41 am
Hi Sinking Fast. Some companies do demand that there is a fee payable up front while others work on a no win no fee basis. There are also companies out there who promise the Earth and you find yourself dealing with professional salespeople as opposed to insolvency specialists.

As an industry we are very heavily regulated and some of the practices you describe are not permitted but there are firms out there not covered by the same regulatory bodies and that would be an issue for the OFT. For example the 'bankruptcy advisory' firms are consistently giving out bad and dangerous advice and the Insolvency Service have issued warnings against them. However, there is nothing that our regulators can do to them as they are not covered. If we gave out similar advice we would be fined and closed down.

 

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MelanieGiles
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by MelanieGiles » Thu Jan 21, 2010 10:02 am
It is always a shame when a highly regulated profession - as mine is - gets tarred with the same brush as the debt management industry where there still seem to be a lot of problems with poor advice.

Hopefully the longed for regulation in this industry, expected this year, will seek to sort a lot of these issues out.

If Sinking Fast's experiences are from within the insolvency profession - ie IP firms - then I am simply disappointed, but this shows the advantage of speaking to more than one firm when taking advice. Firms engaging in the practices mentioned above, are unlikely to have a long shelflife.

 

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size5
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by size5 » Thu Jan 21, 2010 10:05 am
You should take time to visit www.iva.com and have a look around there. There are plenty to choose from, and you may also want to see if there is any feedback on the people that you have already spoken to.

Do also take time to speak to 2 or 3 reputable firms, who will be happy to give you no nonsense, no obligation advice. When you are happy then you can proceed from there.

Regards.

 

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Andrew Graveson
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by Andrew Graveson » Thu Jan 21, 2010 1:20 pm
I'm not sure this is a "debt management" versus "IVA" issue. The OFT and the Ministry of Justice are questionning the quality of advice throughout the debt resolution industry, and are thought to have identified good and poor practice in all quarters.

The greatest problems seem to me to come from certain lead generation firms who will often say and/or do whatever it takes to create a case and make some money.

Of course they end up with little responsibility for what they have said or done because the case gets handled by an external firm (IVA or DMP).

Not to say that the debt management industry wouldn't benefit from further regulation and/or control. A lot of responsible DMP providers welcome the prospect of regulation or self-regulation to improve the services that those who select debt management as an option receive.

 

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Darkdog
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by Darkdog » Thu Jan 21, 2010 5:27 pm
I too have spoken to some IVA companies who are like a conveyor belt for IVA's, one still sends me emails even though their services were declined. I would also wish to further endorse Melanie's team, very easy to deal with, explain exactly what is going on during the process, answer any questions and make sure you are happy with everything. We have been dealing with Claire and she is excellent at what she does, Melanie, you can tell her she has been mentioned and praised in dispatches :-).
So in a nut shell you have to phone around and also look out for endorsements as well and select an IP you are comfortable with (as we are), it's a long term commitment you will enter into.

 

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Cath
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by Cath » Thu Jan 21, 2010 6:17 pm
Sadly there are cowboys in every industry.

 

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Sinking Fast
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by Sinking Fast » Thu Jan 21, 2010 7:04 pm
Yes I think your correct Cath.

As MG points out; these cowboys do tarnish the reputation of the respectable experts who post on this site. The sooner regulations are tightened, and the squeeze is put on these irresponsible companies then the better.
My concern is people who are looking at going down the IVA route, and are unaware of this forum, could be easily duped into thinking that an IVA is a panacea to all their debt problems on the basis of what they are advised from these cowboys.

Thank god for the IVA forum.
Cath wrote:


Sadly there are cowboys in every industry.

 

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MelanieGiles
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by MelanieGiles » Thu Jan 21, 2010 7:53 pm
That is why is it appropriate for people to seek advice from a number of sources before deciding on the right provider.

 

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kallis3
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by kallis3 » Thu Jan 21, 2010 7:59 pm
Quite agree, but as most people haven't found the forum, they're like me and grab at the first lifeline thrown at you. Fortunately I picked a reputable firm, but a lot of people don't.

 

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Skippy
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by Skippy » Thu Jan 21, 2010 8:01 pm
I went with the first company I spoke to and things didn't work out. At the time I was scared, hadn't found the forum and didn't even know I could get a second opinion.

 

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Cath
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by Cath » Sun Jan 24, 2010 4:56 pm
Totally agree with Kallis, the depths of dispair when you first begin your IVA journey are such that you will take that lifeline without properly thinking it through.

Thank goodness for Google or we would be in a right mess now!

 

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Shining
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by Shining » Sun Jan 24, 2010 6:09 pm
I have to agree to desperation when you finally realise you're insolvent, it took me many months to admit as this time next month etc., was always going to be better. I'm glad I found the forum and Melanie is all I can say. I will honestly say without Melanie I doubt my IVA would still be running.

 

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fletch76
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by fletch76 » Wed Jan 27, 2010 10:27 pm
I wish I had known about this forum before I started my IVA, 2007 I had never even heard of IVA so typed in on internet, picked first firm, big mistake, now after paying for 2 years its now failed and we are going to have to go bankrupt now, dont feel we have any option, I never even knew we had an "IP" until i came on here, paid for 2 years no contact until it came to our yearly review, which was 2 yeaars later. to be told after 9 months of trying to sort it that we dont have enough surplus income (probably after they have taken thier fee of course!! Everyone on here are so nice and i will recommend it to anyone i know or thinking of going on an iva, thanks for your advice, from proper professionals x
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