Instead of helping to pay off debt, you end up just paying off these companies’ fees
12.1 million Brits have been getting into debt just to cover food and utility bills. IVAs (Individual Voluntary Arrangements) are being sold by companies who charge a fee to people who can’t afford this ‘solution.’ Some of these companies are pressuring the poorest to take out IVAs. IVAs suit those with a steady income and assets to protect.
Companies like Forest King Insolvency are selling IVAs to those on benefits, even disabled people, on Personal Independence Payments (Pips – disability benefit.) Between 25-42% of IVAs fail, leaving debtors back at square one, having only paid the IVA company’s fees. Debt relief orders for debts under £30,000 are much more suitable for those with under £75 available to pay off their debts. The innocently named “Mums in Debt” – talks about writing off 85% of debt when an unsuitable debtor will just end up paying off these IVA companies’ fees.
Anyone on benefits sold an IVA should be able to claim the company fees back from that company.
#BBCPanoramaDebtTrap #IVAmissSelling #CAB