January 17th, 2007 2 Comments » | POSTED BY ROB
This Is Money: Crackdown On IVA Sellers
More than a dozen firms promoting IVAs to people unable to cope with their debts have been ordered to stop using misleading adverts
Read the full article at ThisIsMoney.com
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2 Comments on “This Is Money: Crackdown On IVA Sellers”
It’s been a long time coming. There aren’t enough facts presented to the already troubled consumer about any pitfalls to consider. The adverts portray IVA’s as ‘a wonderful solution to all your debt problems’. IVA’s are really one step up from bankruptcy and most certainly not the only option available to a great many people in debt.
Most of the debt companies have a vested interest in pushing you towards an IVA because of the extortionate fees that they make. To give you an idea the bankruptcy fees are about £400, in a debt management arangement they may make about £600 or so depending on teh arrangement, but have do do some work for their money. However, an IVA can make them £7200, mre if they have to vary the terms. There is not a lot of work to do and most of this can be automated. IVA’s have their place, but the government presented a lot of sharks a golden opportunity to make money at yours (and your crditors expense)!
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