Article in Mail on Sunday

scootw1

Did anyone see the article in the Mail on Sunday about IVAs? it stated that a few companies are being investigated for mis-selling IVAs and one couple found that after two years of being in an IVA not a penny had been paid to creditors. If this is common practice with IVAs I think it's disgusting and more regulation needs to be come in for IVA companies

CLAPTON

whether or not IP fees are excessive may well affect whether as IVA proposal is acceptable to the creditors.
However, once the IVA is agreed it makes no difference to the couple mentioned. once they agree their monthly payment, it is then fixed for the five years and how much the IP takes doesn't then affect them.

scootw1

What I am saying is that the monies should start to be paid out earlier. I paid into an IVA for six months and not one penny went to the creditors. Easy way for the IP to get rich quick (and that's not just my opinion, other people have said the same thing).

scootw1

CLAPTON wrote:

whether or not IP fees are excessive may well affect whether as IVA proposal is acceptable to the creditors.
However, once the IVA is agreed it makes no difference to the couple mentioned. once they agree their monthly payment, it is then fixed for the five years and how much the IP takes doesn't then affect them.

The monthly amount is not fixed for five years, it could vary dramatically over that period

CLAPTON

Let me rephrase it.
as long as you stick to your agreement the debts are cleared at the end of the five years irrespective of the IPs charges.
I'm not defending the high level of charges (although these are in general pretty well known) but simply that once the payment plan is agreed is doesnot affect the debtor directly.