IVA Research

DebtResearch

Hi all,

I'm doing some research for an economic paper into the add-on services provided by IVA companies during the pre-appointment stage, and the costs and charges levied for setting up and running a case.

If anyone is willing to share their experiences, I would be very grateful.


Many thanks,

Dave.

Anondebtadvisor

Anyone who has had an IVA with Payplan or DFD will have experienced this, they try and sell you everything, PPI reclaims, Insurance, secured loans and if they cant make money that way they then sell your details so more companies harass you.

It be interesting to hear others experiences

DorisTrousers

I would very much doubt any IVA providers will provide add ons at the pre appointment stage, as there is no guarantee that creditors will accept the IVA.


There ARE firms that take payments prior to IVA, but they are best avoided unless they refund in the event of a rejection at creditors meeting. Most IP firms, if approached directly, will charge nothing in advance of creditors meeting.


The costs of running a case, DTI fees, indemnity, bonds etc, should be clearly set out in any proposal/chairmans report, so perhaps the OP would do well to approach individual companies to establish that side of things, rather than rely on anecdotal evidence.


I have no experience with Payplan or DFD so can't agree or disagree with anon on the rest of it.

Anondebtadvisor

Although you can avoid the "up front fee" unfortunately there are now introducer firms, selling IVAs to firms of insolvency practitioners for 120% of the nominee fee, this limits the choice of the consumer as they will be put with an IVA firm that pays the highest price for their case!

Then when there case load is big enough it will be sold and probably to good old GT!

DorisTrousers

Interesting.


Those economics don't add up to me, unless they are isolated examples of high value monthly payment IVA's, which are less and less common in these times.


I guess the moral of the story is that if anyone is considering an IVA then they should approach an IP firm directly, and if unsure then don't shell out any money and clearly establish the name of the IP who will be dealing with the case, as this can then be researched. A lot to ask of someone who may be still in the "help, what can I do?" stage I know, but still worth trying to get the message out there.

dapast

I had an iva with DFD, found them help full, no up font charges, helped me and my family!

dogsrock_2

The first time I phoned DFD they persuaded me to open an account with secure trust bank, implying I wouldn't be accepted elsewhere. I paid a monthly fee and a charge to withdraw cash at ATMs. Obviously I soon learned I could get a free basic bank account.
They have also regularly badgered me to change my life insurance and gas/electricity provider using their 'money saving team'. I suspect they must be earning commission for this 'service'.
On occasion the call centre staff have tried to make me co-operate by telling me its a condition of my IVA, it isn't, according to the agreement I have signed.

Is that what you mean by 'add-ons'?

dapast

They advised us to open a new account as we owed money to our bank, they asked us once every 6 months if we would like to talk to there money savings team, but no pressure to take anything, just check your gas, electricity, broadband isn't too high and offer cheaper tariffs if there are some!

I don't get all the bad press about DFD, I never had a problem with them.

DebtResearch

dogsrock, that's exactly the kind of thing I was talking about. The economics just don't stack up for low-value cases unless there are kickbacks and commissions along the way.

sourcrates

This happens a lot.


I too was with DFD and they attempted to get me to go through all my utilities, bank accounts, PPI, etc etc.


I told them point blank I kept up to date with all these things myself, and to remove me from there sales/marketing list, which they did, and I had no further trouble.

headstuckinsand

When I started my IVA with Payplan they did try to get me to sign up to homecare and carcare insurance type product through their 'partner'. I didn't go for it though.

Each year they ask me about my other insurance products (life, buildings/contents, car) so they can quote to save 'me' money but I always decline as in my opinion this advantages them twofold - they get a commission for passing on customers and if the quote is cheaper they also get more money into the IVA as my outgoings are reduced meaningb they get more from the fees.