Predatory IVA advice firms are still out there.

[Foggy]

Our friends over at Debt Camel have highlighted two articles this week on a channel 4 investigation into predatory debt advice firms pushing IVA’s where another solution might well have been the better route for the consumer.

Referral agents can earn up to £900 in referral fees and the actual IVA provider can charge, sometimes substantial, fees for an IVA. If an IVA is justified the providers fees can be justified and many a provider can be a lifesaver. But, as always, there are firms out there who do still put their fee above the needs of the consumer.

Have a read of the articles in the following links and remember, when researching solutions, speak to more than one provider to compare advice, NEVER be pressurised into signing up, if they fabricate “facts”, step away and discuss any worries or doubts on forums such as this, but, above all, check that the firms you talk to are genuine, with a reliable track record and are members of the relevant regulatory bodies.

These are the links:  Citizens Advice Article  and  TBIJ / Channel 4

[Lulu]

<p style=”padding-left: 40px;”>Thanks for highlighting this Foggy. It’s really important expert advice is taken at the outset and individuals do not rush into making a decision as to which provider they go with. Spending extra time doing your “homework” and deciding who to use will pay huge dividends later and become your best friend during your IVA</p>

[Niobe]

I totally agree with the above comments.  I remember when I was starting out one firm, which is now defunct, tried to get me to inflate figures and ‘hide’ money so they could get it through.   Needless to say I told them to do one and went with another firm who were excellent and not pushy at all.

[Paul]

Where there is money to be made,unfortunately,unscrupulous individuals and companies will always be about.

If someone is telling you to fudge figures for expenses etc and boosting how much debt they can right off,do yourself a favour and look elsewhere.

Introducers fees, are they industry capped at all?

An IVA can be a fantastic tool to regain control over financial issues but IT DOES NOT suit everyones situation.

 

Paul

[Foggy]

Carrying on this topic and keeping the much needed discussion alive, Ames Taylor has written an article, over on Debt Camel, which makes a good read. Read the article here.

From my 13 years experience with “things IVA”, starting as one in an IVA, I can confirm that many IVA’s sold are not the best way forward, though, used correctly, they are a useful solution for those it suits.

I have found that most issues arise when an IVA is looked on as a device to pay back as little as possible, rather than as a means to pay back (with proper advice) what you can reasonably afford.  Bear that in mind when taking advice. The former, rather adversarial, approach is fraught with traps for the unwary.

[Niobe]

The objective should always be to pay back as much as possible but I have seen on other forums that some people see it as the easy way out.   I personally know of one person currently in a second IVA who is constantly borrowing money from a family member and is still going out socialising and going on weekends away.   They are constantly taking the p**s as far as I am concerned.   I am still waiting for them to be found out.

 

[tomg]

I wish I’d found this when I was looking for solutions. I rushed into it not helped by the “debt expert” claiming iva was the best way to go before even explaining my other options. These people definitely prey on impulsive people who are desperate. I started it a year ago and its been a constant cloud over me causing anxiety. I haven’t even found the courage to tell anyone because I feel like a failer

[Author]

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