IVA Archive
Posted on June 6th, 2008 in IVA.
The Office of Fair Trading (OFT) is aiming to protect British consumers who have entered an individual voluntary arrangement (IVA) by warning them of unscrupulous businesses that are looking to make their debt problems worse.
According to the OFT, there are a number of companies operating around the country that are providing insolvent Britons with misleading information with regard to their financial situation.
These firms have been telling people that they might have been mis-sold their IVA and could be better off if they entered bankruptcy, when this is not necessarily the case, the office has explained.
Ray Watson, OFT director for consumer credit, said: "Tackling companies who are engaging in unfair business practices by targeting vulnerable consumers with misleading advice and information, particularly if it leads to consumers becoming more over-indebted, is a key priority for the OFT."
Credit Action reported recently that one person in the UK is declared bankrupt or insolvent every four minutes.
Posted on May 20th, 2008 in IVA.
A growing number of loan sharks are looking to target vulnerable debtors by luring them in with promises of free financial advice, according to reports.
The Bankruptcy Advisory Service (BAS) has stated that about ten more advice sharks are emerging every week.
"A lot are internet based and claim to offer people help with their money worries, when in fact they are pushing them into inappropriate and expensive debt solutions," Joanne McGillan, BAS spokesperson, told the Guardian.
Meanwhile, the Consumer Credit Counselling Service has also witnessed a significant increase in numbers, with some companies targeting customers on individual voluntary arrangements (IVAs).
Consumers are informed that they may have been mis-sold the IVA and are advised that they should instead file for bankruptcy, with the shark taking an inflated fee.
Other scammers are targeting consumers by phone using automated dialing techniques in an effort to track down debtors.
Recent figures from the Ministry of Justice have identified a sharp rise in the number of people filing for bankruptcy in the UK.
Posted on April 16th, 2008 in IVA.
The rates at which UK consumers turn to individual voluntary arrangements (IVA) as a solution to their debt problems is set to increase dramatically, it has been claimed.
A report from credit risk management firm TDX has suggested that the UK has around £25 billion worth of "problem" debt and that the scale of write-offs is likely to rise this year.
Close to 60 per cent of the country’s unsecured debt is accounted for by credit card arrears and the rate of entry into IVAs and other debt management solutions could be almost double this year than it was in 2007, according to TDX.
Around 400,000 Britons are believed to have entered either an IVA or a debt management solution last year and TDX has indicated that house price reductions and rising inflation will force many more people to take this action in 2008.
In January, accountancy firm Grant Thornton predicted that around 120,000 people in the UK will be declared insolvent in 2008.
Posted on March 28th, 2008 in IVA.
There has been an increase in the number of "high-flying professionals" seeking individual voluntary arrangements (IVAs), an expert has asserted.
Director of comparison and advice website Iva.com Terry Balfour made his comments to the Scotsman newspaper, highlighting that there has been a "significant" increase in insolvency queries from people who earn higher-than-average salaries.
He told the publication that the average level of debt is about £25,000 but that some people have approached his organisation because they are considering the route for debt of just £6,000.
A number of property developers, accounts, lawyers and bankers are now considering IVAs as a route out of their problem debt, Mr Balfour continued.
"The level of contact from people whose finances would usually be regarded as watertight indicates just how pervasive the current crisis is and points towards more casualties to come throughout the year," he added.
Research conducted last year by CreditExpert.co.uk found that five per cent of the population have considered or entered insolvency – either bankruptcy or the IVA alternative.
Posted on March 27th, 2008 in IVA.
As the cost of borrowing rises, it could impact on the British economy, an expert has acknowledged.
Gareth Mackie, a spokesman for high street bank Halifax, warned that people who find themselves in financial difficulties should seek advice and support from their lender or bank.
"It’s not in anyone’s interest for people to get into financial difficulty so don’t leave it until things are in a precarious situation," he added.
However, for some Britons, Mr Mackie’s advice may be too late and their debts through credit cards, loans and other sources of borrowing have become too great for them to cope with.
One possible alternative to bankruptcy in such cases is an individual voluntary arrangement, more commonly called an IVA.
These agreements allow the debtor to repay an affordable monthly sum for a fixed period at the end of which they can be set debt-free.
IVAs can allow people to retain ownership of important assets such as their homes.
