Payplan

aliscrapper

No worries Up to My Neck In it.

That's a scary statistic of 40% IVA's failing.

The IVA SOA that Tina is putting together includes my Disability Living Allowance and as tht is reviewed regularly could be taken away from me at any given time; so really scared if that happened it would make paying everything so tight. Hubby doing lots of over-time for this eventuality but still very scarey.

Depth_Charge

UpToMyNeckInIt wrote: »

Hi Aliscrapper,

Sorry, not allowed to plug other specific forums (had my wrists slapped previously). Tina will tell you though.


Hi DC,

I always enjoy reading/debating your posts. I agree with your points made on this thread, and as you say all these IVA firms reckon they are the best. (Suppose that's the same in any industry though). Hence why I am a great believer in customer reviews.

These forums are all about 'opinions', and I wouldn't say yours is necessarily 'anti-iva paranoia'. I would describe your postings on IVAs as cautionary. You do - quite rightly, emphasise the need for careful consideration to anyone considering entering an IVA.

This is important because near enough 40% of IVA’s are ‘terminated’ (fail). How many times have we come across ‘I wish I’d gone bankrupt instead’ type posts, from IVA customers with little in the way of assets, who arguably may have been mis-sold the product? For example.

It’s all about potential IVA customers researching their options thoroughly I believe that some debate on this forum with the private sector – not least on subjects such as: hard / mis-selling, not properly considering the customers full options etc. could be useful accordingly.

Hi

The idea of debt advice is for debtors to get out of debt, an end game / hope / light at the end of the tunnel.

Not to keep on struggling and end up worse off even.

The 40% you quote is horrendous, throw in the PPI issues & now the spectre of secured loans for releasing equity along with the dire economic situation and IVAs start to look a potential minefield.

Commission, marketing, profit and sales by their nature do not and cannot ever sit comfortable with independent impartial advice in my opinion.

It is not just the fee chargers if I am honest, some of the things I see in the so called free charity sector is getting there, but they are being found out and they know it despite the lets keep quiet and it might go away (it wont and it isn't)

I have been around in this game a long time now and know the score.

The most we can hope for is balance.

Yes, I have no problem debating the fee chargers on here or anybody else for that matter.

The IVA Industry wont change too much on the sales pitch subject, some of them hardly do themselves many favours on the forums selling wise even when independent voices try to tell it right.

My opinions as always

UpToMyNeckInIt

aliscrapper wrote: »

No worries Up to My Neck In it.

That's a scary statistic of 40% IVA's failing.

The IVA SOA that Tina is putting together includes my Disability Living Allowance and as tht is reviewed regularly could be taken away from me at any given time; so really scared if that happened it would make paying everything so tight. Hubby doing lots of over-time for this eventuality but still very scarey.

...It is a worrying statistic.

Fortunately, the failure rate with your company runs at 5%. That, I guess, is the difference between a good IVA firm and one that is average.

If you loose your allowance, I'm sure that your firm would review your circumstances immediately, vs other companies who might make you wait until the annual review.

Fingers crossed for you.

Depth_Charge

UpToMyNeckInIt wrote: »

...It is a worrying statistic.

Fortunately, the failure rate with your company runs at 5%. That, I guess, is the difference between a good IVA firm and one that is average.

If you loose your allowance, I'm sure that your firm would review your circumstances immediately, vs other companies who might make you wait until the annual review.

Fingers crossed for you.

Hi

I hope you don't mind me saying, but you seem to put a lot of faith in these reviews which is your perogative of course.

Me, I don't pay too much attention to reviews (or some of those cheesy client testimonials) as it is just basically another form of marketing and selling in my opinion.

Now you have touched on percentage failure rates in this post which in my opinion gives a fairer guide.

Why don't the IVA companies have a league table of failure rates (including average lives of the IVA) and statistics on IVAs that are in difficulty etc as this would have more substance in my opinion.

To accompany the above perhaps they could have a league table of fees they have generated from failed IVAs? Maybe they would even consider a levy out of this money to go to the genuine free charity sector that often have to pick up the mess and misery of failed IVAs.

The IVA companies must have the above statistics after all you have quoted 5% for the company mentioned in this thread have you not?

If the failure rate is around the 40% as you mention and some companies have low individual failure rates of say 5% then the simple maths would suggest that others have to be much, much higher, mmm think about it, just how high must some of them be?

Food for thought for organisations such as DEMSA & The DRF to get their teeth into maybe (I wont hold my breath on that one however:)

To balance this with regard to the client testimonials as far as the profit makers are concerned it would seem that they are not alone - some in the so called charity sector would appear have adopted this approach, the TV adverts have started again also by the look of it (things must be getting tight)

Another point is DLA should basically be used for care & mobility costs, however there can be exceptional circumstances and choice ( the fully informed version hopefully)

If anyone from the fee charging profit making IVA companies 'just happen' to look in on this thread then maybe they might fancy a 'dabble' or two on some of the above, we can start a separate thread if necessary I would think (for league table purposes especially:)

Just my tweeky observations and views mind and take as always.

UpToMyNeckInIt

I do put some faith in genuine customer reviews - how else is someone supposed to decide which company is best for them? Use the biased outdated guide on this site (as I did)? That had me being badly advised by the debt charities, resulting in me approaching the first private firm - an upfront fee charger, that would put forward an IVA for me.

If I knew then what I know now, I would still have gone the IVA route, but would have chosen a company with good reviews in an independent website (I agree that some of the testimonials appear to be self-written by some of these firms).

The idea of league tables is great. As you say, many companies boast a much lower than average failure rate, so others must be pretty awful. I'm sure is it not beyond the realms of possibility for the Insolvency Service to do a breakdown (they publish the overall figures).

Find_The_Real

I have to agree with UpTO that these reviews (or cheesy client testimonials) are essential when deciding who to go with. Yes some people will moan where it is not really valid but I think it gives an overall picture of who to seek advice from.

I went with the one who came highly recommended both in terms of reviews and from forum experience and I am glad that I took a bit of time to research firms and to follow the advice of other people recommendations.

So yes I have now posted a cheesy testimonial because having gone through the process, I genuinely believe such feedback is essential for other people seeking advice, especially when you can be overwhelmed with debt solutions and advice.

Although I have had a DMP with a debt charity and will be grateful for their advice and help, I don't see them as always the best route for this kind of thing, especially when you consider how much the financial institutions "donate" to them and their over-reliance on one or two companies, not giving people seeking advice the full picture.

Depth_Charge

Hi

You both raise fair some points really.

However there is the matter of the horrendous failure rates so the reviews and testimonials can only carry so much weight surely!

I have also seen many people who originally read testimonials who perhaps now have a different point of view from what they did at the outset.

There is also the matter of IVAers ending up with a different company than they originally signed up with, reviews & testimonials maybe not worth much in those circumstances.

Simples really, the IVA companies put up their percentage failure rates, fees gained and the rest I have mentioned in my previous post.

Lets have the whole picture, transparency and not selective marketing perhaps if that is the right phrase.

DEMSA, DRF, IPA ?

I have just had a look at the membership of two of the above organisations, mmm, interesting:)

My take

Find_The_Real

I agree DC that better transparency would be of benefit to those seeking information about IVA's and other debt solutions as most of them just give the basic facts.

Another thing I have noticed in the months of research I did before finally deciding on my debt option was the lack of information on lump sum IVA's as I am guessing a lot of companies aren't favourable to those due to the reduction in fees.

The real problem is that due to pressure from creditors, people are not given the time to make an informed decision.

Sorry Aliscrapper, I have forgotten to wish you good luck with your IVA, you have chosen well and from personal experience I think you are with a company that is very good. Wishing you all the best for the future.

Depth_Charge

Find_The_Real wrote: »

I agree DC that better transparency would be of benefit to those seeking information about IVA's and other debt solutions as most of them just give the basic facts.

Another thing I have noticed in the months of research I did before finally deciding on my debt option was the lack of information on lump sum IVA's as I am guessing a lot of companies aren't favourable to those due to the reduction in fees.

The real problem is that due to pressure from creditors, people are not given the time to make an informed decision.

Sorry Aliscrapper, I have forgotten to wish you good luck with your IVA, you have chosen well and from personal experience I think you are with a company that is very good. Wishing you all the best for the future.

Hi

Thanks for your very fair and interesting reply.

I agree with everything you have put here.

I could go on but it has been said before and perhaps can wait for another day, another case maybe.

Same again with the good luck Aliscrapper, let us know how you go on if possible or if you have any problems - PS - I never did get to see that SOA:)

My take

aliscrapper

Just wanted to pop back and say our IVA was successful. In the end we went with Clear Debt who managed to reduce the original payments suggested by other IVA providers of £250 to £165. Clear debt were brilliant.

Thank you to everyone for their advice and for supporting us thru a stressful time.