An IVA will have been deemed to be mis-sold if:-
Without Prejudice-in our opinion
a) All the seven alternative solutions were not explained
b) If the fees payable were not clearly explained up front before the agreement was entered into.We have had cases where it was said the fees were £800 and the full fees were not disclosed(ie £5000 to £14000 is the range)-Joint (interlocking) IVAs have now ceased.
c) If the advisor has a vested interest in the solution.
d) If a number of independent advisors (Such as the Citizen’s Advice Bureau-CAB) were to all disagree with the proposed solution or deem the solution not in the best interest of the client.
e) If the client has no assets and rents and bankruptcy is the logical option.
f) If the client is a home owner and the "year 4 clause" is not explained fully. Some clients are liable for a remortgage at year four for upto 100% of the equity (check your IVA for details).
An IVA is not mis-sold if:-
· If all the advantages and disadvantages are explained of all seven of the UK’s debt solution and the client is left to choose the solution they think best.
· If the advisor suggests a solution and for the clients own personal reasons or circumstances chooses an IVA over all the other solutions.
Struggling with IVA Payments
What are my options?
Keep up the payments
Ask for a variation of your IVA
If the above can't be done seek advice for alternatives -ask a debt advisor
What happens if I miss three payments?
You are at risk of an IVA breach unless you have an agreed "payment holiday" agreed by the creditors through the insolvency practitioner
What if I receive a certificate of non-compliance or a certificate of terminatinion in an IVA?
The IVA has broken down and is terminated. You will need advice on what to do next as the creditors will also be told this and will start to ask for payments for the debt remaining.
