Aperture have now become the second large IVA firm in 2016 to be offering some IVA customers an "early exit loan". These loans will be provided by Sprout Loans. This follows the Creditfix / Perinta loans which started in July 2016. My verdict on the Creditfix / Perinta loans was that they are expensive, risky and many people in IVAs should avoid them. So are these Aperture / Sprout loans much … [Read more...]
Debt news and policy
Debt Camel articles on what's happening in the world of personal debt in Britain.
For my collections of other news items, please see Weekly News Summaries.
IVAs are the most common form of personal insolvency in England. There were more than 12,000 IVAs started in the second quarter of 2016, 42% higher than the same period in 2015. Clear Debt has recently stated: Individual Voluntary Arrangements) (IVAs) have become the procedure of choice for those people who have debts they can’t pay and a regular income to enable them to make contributions to … [Read more...]
Some people have been told they can end their IVA by taking an "early exit loan" from Perinta Finance Ltd, via a broker called Just Lending. Creditfix, the biggest IVA firm in 2016, are sending these emails, but the loan may be available to people in IVAs with other firms. This is a new concept for IVAs. Is it a good one? This will depend on the details of your particular situation, but this … [Read more...]
A reader who had gone bankrupt recently was surprised to get a letter from "The Register of Bad Debtors". This offered to remove her name from their records if she pays them £49.95. She asked if BadDebtor can really do this? There are also reports that people with IVAs are receiving similar letters. UPDATES August 21 - the Bad Debtor home page has been replaced by an abstract moving graphic … [Read more...]
The deals available on 0% balance transfer cards got better - longer and cheaper - throughout 2016. Now in January 2017 you can get a 43 month deal if you pay a hefty fee or you can get a 25 month deal with no fee at all. If you have a good credit rating, there has never been a better time to refinance that expensive credit card debt. In contrast,there are now a lot fewer cash back offers than … [Read more...]
This is a guest post by Peter Sargent, an Insolvency Practitioner and Consultant at BHP Clough Corporate Solutions. He is a member of the IPA’s Membership & Authorisation Committee and former president of R3. The failure of Varden Nuttall (and its holding company), a middle ground IVA bulk provider has brought into sharp relief the current system of Insolvency Practitioner (IP) … [Read more...]
Here is my "League Table" for IVA firms in 2016, showing all firms that registered more than 250 IVAs in the first six months of 2016. The figures were supplied by the Insolvency Service to Louise Yates. The 2012-15 figures were full year figures and I used a cut-off for the table of "over 500" cases a year. As the 2016 figures are for half a year, I have halved the cut-off to "over 250". The … [Read more...]
Manic spending, during a high or period of mania, is one of the six triggers for increased spending identified in the Money and Mental Health Policy Institute's latest report, In Control: A consultation on regulating spending during periods of poor mental health, published last week. I have been contacted by a reader who has suffered from bipolar disorder for many years - this is Miss D's … [Read more...]
If you want to talk about setting up an Individual Voluntary Arrangement (IVA) and whether it is a good debt solution for you, which firm should you talk to? You could put IVA into google... but how do you decide which of the tempting "see how much of your debt you can write off" links to click on? Or you could choose the person that cold calls / texts you telling you about a little known … [Read more...]
In June the new 2016 IVA Protocol was published. It would have be helpful if the Standing Committee had issued a guide to the changes from the 2014 Protocol, but they haven't, so this article looks at the significant changes, ignoring routine updating (such as replacing OFT by FCA) and some which seem to me to be very minor. My thanks to Michelle Butler who wrote about the changes earlier this … [Read more...]