Employer find out about iva

[IMRAN7866]

Mel,

I have been reading posts on this web site for a few weeks now and must say it is one of the best.
I am going down the iva route very soon and I will use no one but you Mel, you have loads of knowledge and seam to have all the contacts, which is great.
I have a question regarding my employment when I enter an iva:
I work for a finance company, I have had accounts with my employer but have now closed them down and they will not be part of the iva, is there any way they will find out of my iva, I know there is a register but do they get an automatic update or list of names of people who are entering into an iva or something similar which would flag to them that I am in a iva.
Funny enough I work in collections and we get lists of names of people that are in an iva and are using credit facilities with us – we then reduce the limits so no further spending can not be done as they are in an iva – don’t know where these lists come from?
This is my only concern I don’t have any other option any way apart from BR but I would lose my job with this anyway.
Please advice and thanks

[MelanieGiles]

Thank you for your comments about the forum - the forum administrators will be pleased to hear that you are finding it useful. I will also be delighted to assist you with your application.

Your employer will not find out about your IVA, unless they search the register which I feel is unlikely.

Curious to know about all of those people in IVAs that you are dealing with - surely your employer would not allow them to have extended credit at all?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[IMRAN7866]

Thanks for this info Mel.

We don’t allow credit when someone is an iva. We get lists that come through to us of people that are in iva's and are spending on one of our credit cards, which was not included in the iva as the account had a nil balance at the time of iva.
Obviously the customers don’t close the account down and then start to shop on the credit card even though they should not be, as they are in an iva and no further credit is allowed.
When I speak to these people the question why their limit is being reduced and account closed and when you politely advise them this is because they are in a current iva, the phone normally goes dead.
That’s what makes me think, if I enter into an iva, I would not use any credit facility, but was just worried if my name will appear anywhere else or if it was just a case of if I was using credit my name would be triggered.

Thanks for your help Mel once again

[MelanieGiles]

Ah - I now see! Do you then use the IVA register to report them to their supervisor? I have occasionally had the odd letter like that.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[IMRAN7866]

No we don’t report them to their supervisor, I think we are just focused on making sure they do not get into any more debt with us, and as long as the account is paid every month we will do nothing else with it. I don’t think it would be in our interest to try and report the breach as it may lead to the iva being cancelled, which of course would lead to br and that, would not benefit anyone.
I think the people that do chose to use credit after entering into an iva, don’t use it for luxury items or anything, the main transactions are in supermarkets, petrol stations and restaurants which suggests they may be finding the iva hard to stick to, When we speak to customers to let them know they limit has been reduced to £750 for example and they have a balance of £746.45, its amazing how many go out and spend the tiny amount of credit left for them to use, just because the system only allows reductions in multiple’s of £50’s. This again shows people are finding it hard to stick to iva’s or should I say have agreed on a tough 5 years to try and pay some of their debt back rather then just going BR.

Hope this helps

[Adam Davies]

Hi Imran
Very interesting reading !!
Your company are very prudent and responsible.
I hope that you are successful with your IVA application.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[lily]

It would be a much nicer world if all creditors were to think as you do Imran.

lily

[IMRAN7866]

Thanks Andy

Lily - I have worked in the collections business for over 5 years now, I hold a professional position and can assure you in all the high level meetings we have, the strategies we and I presume most other major banks use are there to try and eliminate people that just don’t want to pay and have the funds available - would rather go on a expensive holiday for example.
So when people get upset about letters and phone calls they are there for the non payers if you are finding it hard to pay and are genuine, we are there to help as much as possible, and I am sure most other banks are as well.

[spla]

ye right is that why the biggest posts on this site are about no stop phone calls the very sympathetic caller on the other end of the line

[IMRAN7866]

Spla - I know some people get allot of calls from collection departments but let me just clarify if we a major finance organisation in the UK get a call from a customer advising they are going through a iva, our process is to hold the account for 28 days to give time for this to go through. Obviously we cannot just take everyone’s word for it, and we need to contact the IP to confirm an application is in process and only then will the account be put on hold
Another issues we as a department have and I guess many other banks have is staff turnover, constant fast track training unfortunately Leads to staff errors and staff not following procedures correctly, I will be the first to admit this happens in our organisation and I have dealings with many complaints because of this, unfortunately customers will get bombarded with calls that should have been stopped weeks ago but someone did not follow process correctly and the outcome is an unhappy customer
So yes I am ware unnecessary calls to people are made - but normally this is the only option banks will use to try and collect the money, after this the account is sold off for very little funds and we are talking as little as 10p in the £, so banks do have to give it there best shot its not easy but I have seen both sides.
One last point I will make is the older your debt gets the more likely you will get an experienced member of staff as the best are given the last chance before the debt is normally sold off.

[lily]

Good luck with your IVA imran, you are in safe hands.

Some of us have been hounded to the point of attempted suicide, there are, as you say two sides.

My creditors have given me hell and they will not listen to reason. Thats on the one hand, on the other I did borrow the money that I cannot pay back so I guess I derserved it.

Thank heaven for sites like this where desperate people can find some hope.

lily

[OPTIMIST12]

Lily -

What a great post - so true.

Even when I was cursing at the endless phone calls and letters a small voice in my head was shouting at me that there was only one person who let things get this far - ME!!!!

However reckless banks etc. are, noone holds a gun to peoples heads to take on credit they cant afford BUT we all know it is just not that straightforward once you hit the downward debt spiral. So many other things can happen to blow you off course (or sink you altogether!!).

I think it becomes a three way thing - debtors should enter an IVA in good faith and realising that you are agreeing to pay back as much as you reasonably can and NOT to write off as much as you can - creditors should respect this and - providing people are not taking the p should be supportive and flexible where possible - and IPs should take a fair but reasonable fee for what is obviously a vital part of the chain!!

Good Luck to Everyone in an IVA (including me!!1).

[Adam Davies]

Hi Imran
It all comes down in debt collecting,as you have said,to sorting those that can,t pay from those who won,t pay.
I suppose the constant telephone calls are a small price to pay for a solution that gives you financial freedom in five years.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[IMRAN7866]

well said Andy i totally agree.

[kerrie2]

I HOPE EVERYTHING GOES OK FOR YOU IMRAN,IM A FORMER ESTATE AGENT AND WHEN I RETURN TO WORK IM WORRIED ABOUT GETTING A JOB BACK IN ESTATE AGENCY AS SOME COMPANIES WILL NOT EXCEPT YOU IF YOU HAVE PROBLEMS WITH MONEY
YOU WOULD HAVE THOUGHT THAT WITH ME WORKING WITH THE FSA I WOULD BE BETTER,BUT EH IM LIKE EVERYONE ESLE HUMAN WE MAKE MISTAKES

kerrie kirkham