Beware IVA Debt Advice from TV Adverts

Written by PayPlan on 16 January 2008

Unscrupulous IVA Advice

As the ‘credit crunch’ begins to bite and traditional avenues to additional credit are closing off or becoming cost-prohibitive to many, unscrupulous up front fee charging IVA providers are circling to make sure they get their share of the fresh ‘cash-strapped’ catch.

Lying in wait for the post-Christmas credit card and bank statements to land on the doormat, many IVA providers are continuing to make unsubstantiated promises of huge debt write-offs (up to 95%), and restrictions on creditor harassment in exchange for large up-front fees. This activity has lead to some heavy criticism of IVAs recently and the current stand-off between creditors and the more aggressive IVA advertisers is limiting access to the solution for many genuine cases.

Payplan Puts the Record Straight on IVAs

IVAs were introduced in 1986 as a genuine alternative to bankruptcy. In the right circumstances, and used as the legislation intended, they provide the best solution for debtor and creditor alike. Implemented in the right circumstances and administered properly, they enable a debtor to commit to manageable monthly payments and benefit from some debt write-off while providing the creditor with a satisfactory return compared to alternatives such as declaring themselves bankrupt, which may mean a client loses their home or employment.

Information on IVA’s

IVA TV Advertisers

Most advertisers on TV present IVAs as a quick-fix to clear debts, promising huge debt write-offs in a tone that suggests debtors can ‘get one over’ their creditors. Naturally, creditors take exception to this. They resent the idea that IVAs are marketed as a means of by-passing financial obligations and have hardened their terms, demanding more dividend and lower fees for a positive vote in favour of the client.

While the creditors reaction may be understandable, the real price is being paid by genuine candidates for IVAs who would benefit greatly from this debt solution.

Payplan Works for Clients’ Best Interests

Payplan believe IVAs should take their right and proper place as part of a full range of debt solutions. Unlike the one-size-fits-all IVA companies, Payplan will only recommend an IVA when it is in a client’s best interest. This represents a minority of people who contact Payplan.

Payplan’s Insolvency Practitioner says:

‘There is always going to be a place for IVAs. Some people are prevented from going bankrupt due to the nature of their work whilst others wish to avoid the stigma. But we only ever suggest an IVA if we consider it to be in their best interests.

Call Payplan free on 0800 280 2816 for free debt advice and for further information about the best debt solution for you, or submit details of your debts to receive immediate financial assistance online.


Filed under Archive

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

9 thoughts on “Beware IVA Debt Advice from TV Adverts”

  • Edna

    September 3, 2008 at 2:22 pm

    Hello I am a unison member and I wonder if you can help me I am struggling at the moment with my debt. I entered into IVA with Freeman Jones last March 2006 with a monthly payment of £653. until Nov. 2007 an Independent Reduction Cost Hampton Trust offered to help me to remortgage my house and release equity to do final settlement with my IVA. Freeman Jones agreed if I can pay them £23,715. to do final settlement. Now Hampton Trust was not able to help me for reasons I dont know. Now am back to my IVA with monthly payment of £586. I ask them if they can reduce more but they didnt agree. I wonder if you can help me if I can remortgage my house then do final settlement so that I will do one payment. Or any other advice you can give me.

    Thank you very much.

    Reply Report comment

  • Paul

    September 15, 2008 at 9:22 am

    Hello Edna

    It wouldn’t be right for me to advice you on the best course of action here – IVAs can be complicated at the best of times, especially as you are using another IP. You should contact Payplan on 0800 917 7823 where an experienced debt adviser will be able to help you further.

    Otherwise, if you are struggling to meet your IVA payments, then you should first speak to your Insolvency Practitioner.

    Hope this helps

    Paul

    Reply Report comment

  • Maureen

    January 11, 2009 at 9:54 pm

    Hello I am a 62 year old, pensioner with just my pension to live on. I am paying the CCCS £83 monthly. for credit card debts. This will take me ten years to pay offf. My pension is just £95 weekly,I also have all the usual utility bills, I also have to pay amounts to Littlewoods. I am getting into debt with my two banks. I am desperate to do something about it. Can you please help.

    Reply Report comment

  • Paul

    January 14, 2009 at 10:27 am

    Maureen – I’ve emailed you.

    Reply Report comment

  • Paul

    June 10, 2009 at 10:38 am

    Hi David

    Whilst we cannot comment specifically about Freeman Jones, there are several things to consider when going down the IVA route – such as – how much are you going to pay each month (can you realistically afford these payments)? – do you own a house and if so how will the equity be dealt with and what will happen to me if the IVA fails because you can no longer afford to pay into it?

    IVAs are not an easy option – and should never be sold as such. Ignore the fact that a percentage of your debt will be written off at the end of the IVA and concentrate on whether you will be able to keep to your arrangement, in most circumstances, for 5 years.

    Further information can be found on this website here:

    https://www.payplan.com/iva/

    You could always give Payplan a call for a second opinion too.

    Hope this helps.

    Paul

    Reply Report comment

  • Sue

    June 23, 2009 at 12:09 am

    I was divorced in UK in 2008 and left to live abroad in December 2008 – I have credit card debts which until recently was able to pay with money I had in my UK bank account. I am unemployed and have little money at my disposal, I wrote to the companies concerned asking that they freeze the debt until I had a permanent address and employment I advised them that I was living with a friend, they did not reply by mail or email I would appreciate your help with my options.

    Reply Report comment

  • Paul

    June 23, 2009 at 9:28 am

    Hi Sue

    From what you’ve said about your situation so far, it may be best to contact Payplan either by telephone, or through our Contact form – you can copy and paste your details above into the query box:

    You can find the form here:

    https://www.payplan.com/debt-help/

    I hope this helps and that you get the advice and support you need.

    Paul

    Reply Report comment

  • michelle

    August 1, 2017 at 4:40 pm

    hi at the moment i am in a iva with freeman jones i have approx 30000 in debt, i am struggling to pay th increase from 140 per month to 247 per month would a dmp be better for me as im thinking of cancelling this iva
    thanks

    Reply Report comment

    • Jane Clack

      August 1, 2017 at 4:50 pm

      Hello Michelle – if you are in an IVA you are in a legally binding arrangement and until and if it fails – you can stop paying but it will not fail until they do so – you are unable to look at other options. How long have you been in the IVA as you can say to them that this is not affordable and how do they think you can afford over £100 increase – unless of course you have paid off arrears or a car. If it is very early on then very little will have gone from the debt. No-one can say whether a DMP would be more suitable but if you only have £147 available in a DMP it would take at least 17 years to repay with no guarantee that interest and charges would be frozen.

      Reply Report comment

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