MBNA's IVA policy explained
After years of fighting against the acceptance of IVAs, My IVA Adviser has learned that credit provider MBNA have now relaxed their criteria for IVA acceptance in line with the changes brought in through the IVA protocol.
MBNA are now accepting IVA dividends in line with other creditors, and are now to keep step with the standard dividend expectations.
This is a positive step forward for MBNA who, for years, had been adding extra criteria to the normal levels set by all other creditors.
Until recently, MBNA had been insisting that all cases must provide a minimum of 40% dividends. In addition, MBNA were also rejecting proposals out of hand if the contributions being proposed were high enough to have enabled a total debt repayment within 10 years through a Debt Management Plan.
Of course, these criteria only became relevant when MBNA had control more than 25% of the total debt in the IVA as, without the necessary 25% share they would be bound by the majority vote.
But, since the introduction of the IVA protocol in February 2008, MBNA have turn over a new leaf.
It seems that they are now happy to accept IVAs that until recently they would have rejected out of hand.
It is believed that the changes to the IVA process introduced through the IVA protocol has given MBNA reason to reconsider. A significant reduction to the Insolvency Practice's fees seems to have been the major turning point, the size of which MBNA had been protesting against for years.
Professional IVA Advice
To find out more on the latest stance MBNA and other creditors are taking in regard to IVAs call 0800 088 7503 to speak to one of our professional advisers or, alternatively, complete this form and one of our advisers will contact you at your preferred time.