Ray of light?!

UpToMyNeckInIt

Very good points LTP.

Very clearly a big issue looking at many of the IVA concerns people have. There have even been case of people who's only income is state benefits, no assets etc. on an IVA.

Cannot be the best solution for them surely. (DRO or even BR would seem a far more sensible option).

Depth_Charge

phil2580 wrote: »

I assume you are aware that all IVA providers are commercial entities?

All of the CAB referrals go to Grant Thornton (very much a commercial entity); Stepchange received funding from the banks (thus it's directly in their interest to act in the banks' favour), and only directly deal with easy cases - the rest get passed out to, guess who, Grant Thornton.

You may also be surprised to hear that there is very little money to be made in IVAs. Cases with £100pcm contributions typically only pay £15 per month in fees. That's barely enough to cover the cost of postage and stationery, let alone staff costs.

Hi

Not true, not all CABs refer IVAs to Grant Thornton

DC

fatbelly

I very rarely refer anybody for an IVA (I work for CAB) as I almost never see clients for whom they are the best option. However, I did recently refer someone to Payplan...

UpToMyNeckInIt

fatbelly wrote: »

I very rarely refer anybody for an IVA (I work for CAB) as I almost never see clients for whom they are the best option. However, I did recently refer someone to Payplan...

Why do you 'very rarely refer anybody' IVA's? You don't see many clients with assets like property to protect then?

fatbelly

UpToMyNeckInIt wrote: »

Why do you 'very rarely refer anybody' IVA's? You don't see many clients with assets like property to protect then?

I very rarely see anyone with surplus income!

longtermplanner

Why do you 'very rarely refer anybody' IVA's? You don't see many clients with assets like property to protect then?

I can't speak for fatbelly, but my estimate is a lot less than 1 in 20 clients with problem debts is suitable for an IVA. An IVA is unlikely to be appropriate for anyone with any of: a temporary debt problem/ erratic income / living mostly on benefits / renting. Even if they have a house, it can often be protected in bankruptcy. Or it may simply be unaffordable which is what has caused the clients other debts to accumulate. Or it may be interest only and the client is nearing retirement with no prospect of being able to clear the mortgage.

UpToMyNeckInIt

Thanks for those replies.

Cannot disagree with either of you on those points.

I think the problem with the high IVA failure rate is perhaps largely down to the type of customer you both describe being mis-sold IVA's.

Like you say: no assets? no surplus income? An IVA ain't for you.