Thursday 20th of August 2009
Many Britons who went to the Consumer Credit Counselling Service (CCCS) in the hope they could participate in an individual voluntary arrangement (IVA) were told that it would not be an immediate solution.
Approximately 30 per cent of people who asked for the organisation’s financial guidance during the second quarter of 2009 were told that they did not have enough money to take out an IVA, go on a repayment plan or qualify for a debt relief order.
However, an IVA can still be the right option for some borrowers. Individuals in this position were told that they would have to look to raise income through increasing their work hours, renting out a spare room or claiming all the benefits they were entitled to, the Press Association noted.
Indeed, many people may have been keen to pay off debt through an IVA, as declaring bankruptcy could lead to some individuals losing their family home or being excluded from a job, such as one in the financial services industry.
Recent figures from the Insolvency Service showed that in the second quarter of 2009, 12,000 people entered into IVAs.
By Hayley Jones
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Equity release market "resilient"
August 21st, 2009 at 9:12 am
Media debt experts insist on proclaiming the benefits of the CCCS. Watch any BBC report on debts problems and you’ll hear the CCCS plug. Why don’t the media ask a few basic questions about this charity?
Who funds the CCCS ? Answer - the creditors
Why is the calculation of “affordable contribution” so much higher when the CCCS calculate it rather than a company not funded by the creditors.
Has the media examined the CCS guidelines which dictate how much a family can spend on everything from food to a pair of glasses?
Is the media aware that an individual entering an IVA will pay the calculated contribution and NO additional payment for fees regardless of whether the IVA is initiated by the CCCS or a private IVA company?
Very ironic that as a former senior executive with a bank I attended a CCCS meeting which discussed how the upsurge in IVAs could be controlled. The splendid lunch was certainly well in excess of the “meals at work2 guideline.
The free service from the CCCS was like my splendid lunch - no such thing as a free lunch!