CDAS promotional literature

[ray_a]

<font face="Impact">Received this in the post from this company and I studied it. I was rather alarmed by the wording regarding interest.

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Invidual Voluntary Arrangements (IVAs)



What is an Individual Voluntary Arrangement?
Individual Voluntary Arrangements (IVAs) were introduced by the Government in 1986. They provide a way for people to deal with their debts with fewer potential long term consequences than bankruptcy.
An IVA is a binding legal agreement between you and the people you are struggling to repay (your creditors). These may be credit cards, store cards or loan companies. The IVA typically lasts for a period of up to five years and at the end you will be completely free of the debts included in the agreement.

What does an IVA involve?
The arrangement involves you making one affordable monthly contribution towards your debts. This continues for the length of the IVA, after which any outstanding debt is written off. The amount written off depends on your individual circumstances and can be as much as 60-70% of the debt. (Additionally, interest on your debts will be frozen and creditors should not contact you asking for money. ) <font face="Impact">What about statutory interest!</font id="Impact">


Things you own, such as your home, can be protected under the IVA.

How can you set up an IVA?
The IVA can only be supervised by a fully licensed Insolvency Practitioner (IP) such as those at CDAS. Contact us on 0800 4346288 or on-line at www.citizensdebtadvisoryservice.co.uk to complete an enquiry form. One of our debt advisors will contact you when it is convenient to discuss your options and guide you to finding the right solution.

The IVA Process in 3 Simple Steps
If an IVA is the most appropriate solution for you, we can set one up within one month.


Any other thoughts!

[MelanieGiles]

Statutory interest is only payable under certain circumstances or at the request of creditors. It is actually very rare to pay this under IVA proceedings, and generally only in the event of a windfall.

This company is part of Money Debt and Credit.

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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

[ray_a]

Still think it is rather misleading and they should be put a caution!

If creditors can insist on statutory interest then in my opinion an IVA is not legally interest free and should not be advertised as such!

In many ways to be fair to the company it was a reasonable booklet.

[Adam Davies]

Hi
Nothing about equity release !!!!
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

[ray_a]

Hi Andy

Good question I will look at that for you!

Regards

Ray

[ray_a]

Referring back to Andy's question;-

1. Under the first part of the narrative it states that Things that you own, such as your home, can be protected under the IVA.

2. at the end of the booklet it says that as a disadvantage that homeowners may have to revalue their homes in the 4th year and release equity to cover the debts if the value has increased.

3. For bankruptcy it states that you should consider this carefully and thorough advice must be obtained from an insolvency practitioner.
Personally I am not sure on that one!


Hope that helps