HSBC toughening up on IVAs

armarda

I saw this on a news report today - apparently it is the Financial Times today. Is this the start of IVAs becoming more difficult?

"HSBC has increased the rate of returns it will expect to receive when entering into individual voluntary arrangements with indebted customers. The typical rate of return that creditors receive from IVAs is between 25p and 35p on the pound, however HSBC now says it will expect 40p on the pound to be returned to the bank. The bank is said to be concerned over the aggressive marketing of IVAs by debt management companies and it believes debtors can usually afford to pay more toward their debt. HSBC said its new rate would not be imposed in all cases and that each customer's circumstances would be individually assessed."

Mike_St_Helens

armarda wrote:

I saw this on a news report today - apparently it is the Financial Times today. Is this the start of IVAs becoming more difficult?

"HSBC has increased the rate of returns it will expect to receive when entering into individual voluntary arrangements with indebted customers. The typical rate of return that creditors receive from IVAs is between 25p and 35p on the pound, however HSBC now says it will expect 40p on the pound to be returned to the bank. The bank is said to be concerned over the aggressive marketing of IVAs by debt management companies and it believes debtors can usually afford to pay more toward their debt. HSBC said its new rate would not be imposed in all cases and that each customer's circumstances would be individually assessed."

I can see both sides of it really... I can see where HSBC are coming from, if things are that bad and they are getting pennies in the pound then the debtor would more than likley be better petitioning for bankruptcy .. And there are far far too many ads offering IVA's, they advertise them just like mortgages and loans...

People need to be educated about exactly what they are letting themselves in for. A lot of people who may choose this route are in that position from not being financially educated or end up in a mess becauese of all types of reasons, little is known about them and what damage infact they can do to a debtor in the end.

I wonder if anyone has ever produced a report on successes, relationships, lifestyles before during and after an IVA.