IVA misselling

How IVA misselling Happens

Some IVA companies, referred to as IVA factories by their detractors, offer only IVA's.

They normally have arrangements with other companies to trade enquires not meeting IVA requirements. However, their staff are script trained to sell IVA's rather than to offer the most appropriate advice for the caller's personal circumstances.

Just because someone qualifies for an IVA it does not necessarily follow that it's in their best interests to go that route.

Too often, only the headline advantages to the debtor are explained, without a considered explanation of IVA disadvantages.

IVA misselling Hype

IVA misselling probably does not happen as much as with other financial products as it's ultimately the decision of the creditors as to whether the IVA is accepted or not.

Creditors pay fees to IVA providers with the intention of seeing a better return of money owed than by other means. It is not in their interests to see an IVA fail - so they will not approve it if they considered this likely.

Also, some telesales staff maybe over zealous and unaccountable, but each IVA proposal has to be drawn up by a highly qualified Insolvency Practioner, (IP) who is accountable to professional bodies. The IP could be prevented from plying their trade should they be proven unfit.

Many people blame IVA misselling when their IVA has fails as they have not been able to afford payments. For some, this will be justified. For others, it's simply the case that they could not manage their finances before the IVA and they failed to address the problem once the IVA was in place. However for most, the cause of the IVA failure will be an unavoidable down turn of events during the IVA.

How I Can I avoid being missold an IVA ?

If you think an IVA is a potential solution to your debt problem, then the must consider it along with the alteratives. To ensure you are getting the best advice speak to several debt solution companies, including the charity/credit industry sponsored ones. Try and get independent financial advice from someone who would not benefit from you deciding to do an IVA.

Be sure to ask about IVA fees and then call us to ask about our fees.

Don't be fobbed off into being told creditors pay them. This is true but - only from your money paid into the IVA. The higher the fees, the less of your money goes to the creditors.

Where can i go for Impartial IVA advice ?

All IVA companies are required to send the Is a Voluntary Arrangement Right for Me? leaflet by the Association of Business Recovery Professionals. This explains IVAs in none salesy terms and the things you should look out for when choosing an IVA provider.

Money saving expert Martin Lewis has produced a Good IVA Guide.
He says:
“IVAs are not an easy get out of debt. They are an alternative to bankruptcy and should only ever be considered in that light"

This is an opinion we share.

I think I've been misold an IVA?

If you think you have been misold an IVA, you need to speak to your IVA supervisor about it. It would be unethical for us to offer any further advice other than to say, do not default on your IVA without giving due consideration to the consequences.

Defaulted on an IVA?

People who have already defaulted on their IVA normally have two choices:- Either bankruptcy or attempting to reaching an informal arrangement with their creditors, in other words debt management.

If the latter could be a option for you, then speak to us about the possibility of a debt management plan. If you can afford to pay £100 per month towards your debts, debt management may save you from bankruptcy.

We have many clients on debt management who have defaulted on IVA's arranged elsewhere.