Blues & Twos recently received paperwork from an Individual Voluntary Arrangement (IVA) company.  Our member owed a maximum of £5,900 across three creditors (3 loans/credit cards).  The IVA company wanted to charge our member £3,750 in fees (63.5% of the members total debt) and this was just to set up the arrangement. This fee, added to the amount outstanding increased the total owing to £9,650 BEFORE any repayment plan was arranged.

How would this help any person struggling to make monthly repayments and looking to reduce their total borrowing?

As a not for profit organisation, owned entirely by our membership, we have a duty to protect your money and always act in the best interests of members.  We cannot give advice but we are always happy to help where we can.  We are pleased our member brought these details to our attention and was happy to discuss the details with one of our team.  Working together with the member we are now looking to help them find a mutually acceptable solution.

Always speak to your creditors first to see how they can assist you without the need for an IVA – which will stay on your credit file for 5 years!.   Should your situation change within the 5 years and you cannot afford to continue payments with the IVA company, you need to know that the IVA would fail and you would be left with the outstanding debts to repay including their fees.

 

Your Financial Well-being

 

< Back to Blog