Many people dealing with individual voluntary arrangement brokers are not properly advised and therefore “unaware of their full obligations” under their IVA, it has been claimed.
And for “large numbers” of people who are being advised to enter into an IVA, it may actually not be the best solution for their debt problems, the Debt Advice Bureau (DAB) has said.
Stephen Rose, director of the DAB, says stated he has come across many people who have been misinformed by “the so-called IVA factories”.
In particular, he says, said clients are often unaware of the expense involved in arranging an IVA, such as agency fees for the broker.
In a warning to consumers, he highlighted the case of a client who entered into an IVA under which “they would actually end up paying back everything they owe, plus all the costs of the IVA, plus statutory interest – and they had no idea that that was possible.”
The Advertising Standards Agency recently took several IVA brokers to task over their advertising, saying “misleading” claims had been made.
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