Iva Rescue?

gladys77

We keep getting phone calls from 'Richard' at the 'British Association of IVA Consultants' - great name for what sounds like a body trying to cash in on the misery of debt. The very nice and Australian sounding guy tells me that the IVA has almost certainly been mis-sold since there was no privately owned property or business and that a Bankruptcy would have been the better option. The calls keep coming but who are these people? I've tried checking them out on google but no joy. I tried to draw him out by playing along and acting the victim and he was very sympathetic but if it's a big con it's a particularly cruel one. How do I stop the calls coming? The IVA is two years old, three to go and is manageable. My other concern is that there has been a considerable increase in income since it started but the payments have not been altered. Is this going to happen at some point? Surely the whole agreement will be re-assessed at the end? I'm guessing that failure to notify changes is the responsibility of the person paying and that the IVA either gets extended or even that a lump sum will be demanded at the end.

fermi

Please avoid this and similar companies like the "plague". :eek::eek::eek:

A company offering services and advice like this is required by law to have a "consumer credit license" and be registered under the Data Protection Act.

This company and similar previous ones do not, and are to be avoided at ALL COSTS.

Here is an official warning on the governments Insolvency Service website about a similar band of 'crooks'.

The Office of Fair Trading also issued a serious warning on these companies, as did the non-profit debt advice organisation PayPlan.

From: Insolvency Service statement regarding the IVA Council

The Insolvency Service would like to make it clear that we are in no way associated with an organisation called the IVA Council.

IVAs are a flexible and effective means of dealing with debt. For debtors they provide protection from creditors, debt forgiveness, flexibility in terms of what assets are included, and none of the restrictions, which apply in bankruptcy. For creditors they provide a better return than could be obtained in bankruptcy.

IVAs allow debtors to repay their creditors that which they can reasonably afford and resolve their financial problems, and are supervised by licensed and regulated insolvency professionals.

The principal statutory alternative to an IVA is bankruptcy. Bankruptcy should always be the last resort as the debtor will lose control of their assets and will be subject to bankruptcy restrictions, potentially up to 15 years.

Consequently The Insolvency Service does not condone any implication that people in IVAs should stop paying and enter bankruptcy. If you have had any communication from the IVA Council or other third parties suggesting that you stop making payments under your IVA you should discuss this with the supervisor of the IVA and seek advice from professional, qualified advisers before taking any action.

From: OFT warns consumers about misleading IVA mailings

5 June 2008 The OFT is warning consumers to be careful before responding to unsolicited mailings which advise them to cancel existing individual voluntary arrangements (IVAs) and which suggest they opt for an alternative debt management solution such as bankruptcy instead.

Some such mailings sent out to consumers misleadingly suggest to recipients they may have been mis-sold the IVA and/or that bankruptcy may be more suitable for their circumstances when this may not be the case. These mailings are being targeted at vulnerable consumers in IVAs by companies who appear to have accessed their personal contact details from the public register of people in IVAs which the Insolvency Service is required by law to maintain.

The OFT considers such claims to be in breach of its debt management guidance not only if they are misleading but also if they fail to explain the consequences of terminating an IVA agreement and going bankrupt which include:

• Much of the initial monies paid to a company on setting up an IVA going towards meeting the insolvency practitioner's fees and not paying off the debt itself. Therefore, if the IVA fails early on, creditors will not have received any payments, the consumer's debts will not have decreased and their financial position is likely to have worsened.
• The option of bankruptcy having far reaching consequences including consumers losing control of their assets, potentially having their home sold and facing restrictions in carrying on businesses and obtaining credit.

The OFT has issued warnings to 12 businesses and has given them four weeks to respond. They have been told to amend any misleading claims made in their IVA advertising and promotional material and to be more transparent about the possible implications for consumers if they do terminate an IVA agreement. The OFT will consider taking action against any business that fails to address our concerns. Such action could include taking steps to revoke consumer credit licences held by the business.
Ray Watson, OFT Director for Consumer Credit, said:

'Tackling companies who are engaging in unfair business practices by targeting vulnerable consumers with misleading advice and information, particularly if it leads to consumers becoming more over-indebted, is a key priority for the OFT. We expect any advice and/or information given to debtors to be in their best interests and it should include a full explanation of the implications of offers or advice.'

From: ‘IVA Council’ makes false claims | Payplan Blog

If you have recently received a letter from ‘The IVA Council’, then make sure you read this.




Recent press coverage of The IVA Council (IVAC) has exposed its false claims made in letters sent to people already in IVAs which attempt to link it to government and The Insolvency Service.

The letter’s recipient is warned that they might be a victim of mis-selling by their Insolvency Practitioner resulting in a possible refund of fees and contributions. A “government licensed debt adjuster” is offered in support of this claim.


However, The Insolvency Service has confirmed that there is no relationship between the two organisations and that its lawyers are currently investigating the situation.

Any person in an IVA who has received a letter from IVAC needs to be aware of the following:

- IVAC has no ‘Consumer Credit Licence’ number evident on its website. You need this to be able to give debt advice, according to the requirements set out by the Office of Fair Trading
- IVAC offers no ‘Data Protection’ registration details which is necessary for a business that will be recording data.
- IVAC has no ‘Limited Company’ (Ltd) details, registration number or company address which is a mandatory requirement on all emails and letters from any Ltd company
- IVAC has used the logo of IP trade body R3, which it does not have permission to do.
- Credit Today published that ‘numerous attempts’ to contact IVAC had been unsuccessful. (25 October 2007)

gladys77

Thank you Fermi. I'm still a bit worried about the fact that the payments are still the same despite increases in income though. Can the payments be extended when the 5 year term finishes or will they demand a settlement figure?

Deep_In_Debt

Hi
I think payments can be extended for a further year or so and I think you can make f&f offers but you will need to check your contract.

Who is your IVA with? I'm surprised they've not been in touch for a review of your income and expenditure.

balmk

I agree with Deep in Debt - I am surprised that you have not ben asked to complete an I&E at least annually. I had a couple of increases in salary during my IVA and proactively advised my IP.

Jam_Buttie

I have an I&E review every 6 months and usually I end up putting my payments up by about 10 quid or so.