Over the last few years, it has been widely reported that Individual Voluntary Arrangements (IVAs) designed to assist clients with debt issues – have been mis-sold on a large scale.
Investigations by various government bodies including The Insolvency Service have concluded that there are potentially thousands of current, and completed IVAs that should not have been sold in the first instance – as well as a large number of clients who have failed their arrangements given it was not fit for their purpose from the outset.
Identified Mis-selling Reasons Please click on any reason(s) below to read more
Did you believe that an IVA was a 'Government Scheme'?
Many clients have been led to believe that an IVA is a ‘Government Scheme’. If this is something you were told – you may have been missold your IVA.
Whilst an Individual Voluntary Arrangement (IVA) is formalised through the courts, this does not mean that your IP is in any way connected or affiliated with the government. An IP is a private fee charging business. IP’s and/or IVA packagers have been known to lead clients to believe they are in some way related to the government.
You were 'vulnerable' at the time you went into the IVA
Many clients are vulnerable at the point that they seek advice on debt issues. If your vulnerability was not taken into account – you may have been missold your IVA.
The Financial Conduct Authority (FCA) describes being in debt as a ‘vulnerability’. Many clients were pressurised to make a decision, or did not have all of your options explained in an adequate manner. IP’s and/or IVA packagers have been known to utilise the urgency behind your decision to seek debt advice to ensure you enter an IVA rather than other more beneficial arrangement, such as a Debt Relief Order (DRO).
Your Income & Expenditure was completed for you
If you Income & Expenditure was completed for you, or you did not see a copy of the outcome – you may have been missold your IVA.
Your Income & Expenditure should be a true reflection of your day-to-day costs – if it is not accurate, there is a good chance that you stand to fail an IVA. You should also receive, and approve the final Income & Expenditure figures. IP’s and/or IVA packagers have been known to manipulate or otherwise change your Income & Expenditure to ensure you meet the criteria for an IVA.
Completed your IVA Documents electronically
If you signed all of your IVA documents electronically, you may have been missold your IVA.
You should have been made aware of all of the documents you were signing, including court documentation. Documentation should have been read and signed individually, ensuring your have understood them. IPs have been known to have clients e-sign documents with one signature.
Were not made aware of the fees
If the IPs arrangement fees were not correctly explained, you may have been missold your IVA.
You should have been made aware of the fees that your IP charges for the setup and ongoing administration of your IVA. IP’s have been known to not adequately disclose their fee structure.
Failed or cannot afford your IVA
If you have failed your IVA, or are struggling to meet the payments set by your supervisor – you may have been missold your IVA.
Failure to meet the terms of your IVA is a clear indication that you have been provided an arrangement that is not suitable for your needs and/or circumstances. IP’s and/or IVA packagers have been known to put forward proposals that were likely to fail – in order to drive their own growth/profits.
If any of the above are something that you have experienced complete our online application.