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.
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.
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