Two of the largest IVA firms have recently announced the latest in a long line of customer transfers within the industry:
- all Aperture’s open IVAs have been sold to Jarvis Insolvency; and
- Vanguard’s open IVAs will be administered by Ebenegate.
Sale of Aperture’s IVAs to Jarvis
On 5 September 2020 Jarvis Insolvency announced:
Jarvis Insolvency have recently taken over your IVA from Aperture and will now be managing and supervising your IVA moving forwards. This follows an agreement between Aperture and Jarvis Insolvency and an Order made in the Leeds County Court.
Every IVA is under the name of an Insolvency Practioner (IP). The court order would have been to change the IP for all existing Aperture IVAs to Laura Prescott, who works for Jarvis.
Aperture was the second largest IVA firm in 2018, but it stopped taking new IVAs in June 2019. At that time there was some talk that new business that would have gone to Aperture would instead go to Jarvis – see some of the comments below my article Aperture – no longer taking new IVAs.
This transfer has affected 25,000 people who had open Aperture IVAs. They are receiving an email stating what has happened,
Aperture was itself spun out from Grant Thornton in 2015. It then purchased many IVAs from other firms – buying ClearDebt’s IVAs in 2016 and Debt Free Direct’s IVAs in 2017. As a result, many Aperture customers started with a different firm and the transfer to Jarvis will be their third IP.
Ebenegate to administer Vanguard IVAs
Vanguard was the fifth largest IVA firm in 2019, setting up over 6,000 new IVAs. In August 2020 Vanguard announced:
Please note that as of Monday 17th August, all live Individual Voluntary Arrangements (IVAs) are now being serviced by Ebenegate.
This seems to be simply an outsourcing function at the moment. There is no mention that the IPs have changed so Vanguard remains responsible for these IVAs.
Ebenegate says:
Our UK office manages the day-to-day running of the business, while our Mauritius office are the customer care specialists and case-handling experts who will be your point of contact throughout the life of your insolvency case.
There are close connections between Creditfix, the largest IVA firm and Ebenegate. Finbora Group Limited, previously known as Creditfix Holdings Limited, bought Ebene Gate Mauritius in 2018-19. Creditfix and Ebenegate share some personnel. This weekend, the Ebenegate phone number on the Vanguard website was answered by a Creditfix employee, who knew nothing about Vanguard IVAs.
Here is a recent comment on an IVA forum:
I have been in an IVA for a year now and found it very stressful and taken a toll on my mental health (which I am in the process of sorting) I have been speaking to my mum and step dad and they have said they are willing to pay a F&F so I can start fresh, I have been trying to contact them for weeks now emails and phone calls and no response ( Was vanguard now ebengate) I don’t know what I’m meant to do as I can’t get through to anyone any help would be much appreciated.
It remains to be seen how well outsourcing administration to a different time-zone will work for people with Vanguard IVAs.
IVA customers can’t object
You have no right to object to a transfer, even if it is to a firm you deliberately decided not to use at the start of the IVA. You cannot switch to a different firm you would prefer.
After your IVA is set up, you become a commodity for many of the large IVA firms. Your case is a potential stream of income over the next few years. It can be sold to another firm or outsourced to a firm who thinks they can process the IVA more cheaply.
And if communications with the new firm do not go well, there is no independent Ombudsman you can appeal to.
Customers may lose out
The changes come at a difficult time. As furlough and other government assistance unwind, some people with IVAs will need help from their IVA firm to understand the rules around redundancy and payments breaks.
Without proper support, some customers may not realise there are options that could allow their IVA to get back on track or to complete. Systems that prioritise “efficiency” over good communications may result in more IVAs failing unnecessarily.
Reform needed to Insolvency options
Covid-19 and new IVA rules
End your IVA and get a DRO?
Sue Turner says
Hi. Can you tell me what this means for people who had completed their ivas with their original companies. I was with debt free direct and completed in 2015. I was approached last year by aperture about ppi and have received notification that they had re submitted claims. Does this mean I can now expect to be hassled by this new company even though I think they have squeezed everything they can out of the PPi.
Sara (Debt Camel) says
I think that closed IVAs have stayed with Aperture. So they will continue to hassle you, not Jarvis.
Jarvis Insolvency says
You are right Sara – only active IVAs have been transferred to Jarvis Insolvency. IVAs that have already closed whilst with Aperture Debt Solutions remain with them.
Chris says
This is where it gets difficult for people with IVAs. Miss communication and lack of support and clear guidance. Who do we call from now?
Wellbeing services are discontinued (although still be charged on the fees list),
Does this new IP Jarvis charge cheaper fees, thus enabling there clients to pay more capital to there creditors?
Jarvis Insolvency says
Hello Chris,
If you have a query regarding your IVA, please feel free to contact Jarvis Insolvency – welcome@jarvisiva.co.uk – and we will be happy to help you.
Sarah says
Hi Sara I’m total useless when it comes to all this stuff what does this mean for Creditfix I’m so stressed out with it all
Sara (Debt Camel) says
Hi Sarah – you have a Creditfix IVA? You aren’t affected by any of these changes,
Hope it’s going well!
Mike says
This country is shocking if sadly you fall on hard times with ivas and bankruptcy, they stop you starting again by blacklisting people for 6 years! In that six years you can get loans , credit cards but at horrendous interest charges they fleece people not help but people just sit back and take it instead of challenging these corrupt firms ! A lot of profit in misery!!!
Foggy says
On your point of being unable to object or influence being ‘sold on’ as a commodity, I find it egregious that those in an IVA have, effectively, no voice once they are ‘hooked’. I have attempted, in the past, more than once, to raise awareness of this situation and to ask for a mediatory body or system and redress for insolvency provider failings, but have foumnd no support, or stomach for a fight ! Those in financial difficulties should not be left as helpless pawns in these chess games between the insolvency world oligarchs !
Mark says
This is a total and utter disgrace and yet another example of the FCA not really interested in those in debt. However they allow these sharks to continue to make profits and then to discard people on a whim. We desperately need stronger policing of all the Financial institutions in this country.
Sara (Debt Camel) says
The problem is that IVAs come under the insolvency Service and not the FCA. And the insolvency Service does not start from the FCA’s “treat customers fairly” position – it is more interested in maximising returns to creditors. But one of the big problems with the current IVA market is that the returns to creditors, especially from failing IVAs are often low or non-existent…
Andrew Ross says
You really could not make this up. It is an utter disgrace. I feel now is the time for a collective of those on IVA’s etc to form a group to fight back against this ruthless pathway. I believe those who find themselves in debt are perfectly happy to arrange an IVA, repayment plans and the like. The issue is that those company’s charged with arranging them have no interest in the welfare or well being of their clients as their clients are simply funding streams. It is that context that needs to be challenged. I am looking into the legality of “being sold off to another IVA firm” on the grounds of data protection etc, etc. Also are any of you aware that the e mail address from Ebengate on their correspondence does not work? I rang Ebengate yesterday and the dialogue i had was with a clueless and totally unprofessional women who simply did not know what she was talking about. There must be some way of challenging these company’s. Even if it means taking them to court. Thankfully i record all my calls so have quite a bit of evidence of bad practice via Vanguard and Ebengate. I feel people must make a stand as with the state of the Country and with many, many more who will now fall into crippling debt, these sharks are going to line their pockets while ruining lives and with nowhere for the client to go….THAT…….is the scandal.
Sara (Debt Camel) says
I am looking into the legality of “being sold off to another IVA firm” on the grounds of data protection etc, etc.
I am not aware that this can be challenged.
I rang Ebengate yesterday and the dialogue i had was with a clueless and totally unprofessional women who simply did not know what she was talking about.
Oh dear. I suggest you phone back and if you do not get a better response, you ask to speak to a manager or to have a manager call you back.
ting wong says
Can anyone please advise re: my IVA with Aperture (and now JI)? Aperture was due to close the case, as all payments were made back in January 2020 and they’ve dragged their heels insisting on a final year equity release review. I fear that JI will attempt to squeeze more money (eg insisting on equity release). Should I be worried? What should or can I do?
Sara (Debt Camel) says
A final review has to be done, but it should have been completed by now!
All you can do is talk to Jarvis: welcome@jarvisiva.co.uk.