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ALERT: IVA PROVIDERS / BANKS MEETING- RESPONSE FROM JAMES FALLA, THOMAS CHARLES
Banks and Individual Voluntary Arrangement (IVA) providers met on May 31st to discuss contentious areas surrounding IVAs. Following this, a statement was made by Eric Leenders of the British Bankers' Association on the results of the meeting.
Commenting on the findings of the meeting, James Falla, debt expert and MD of debt consultancy Thomas Charles (www.thomascharles.com), said:
“Appropriate advice in the area of debt management is critical for those with serious debt problems. By its very nature, appropriate advice must include a consideration of all the possible solutions available, and for many debtors an IVA is truly the best option. If creditors do not allow the IVA solution on the grounds that the fees which the lenders are charged are too high, then this would preclude thousands from taking up the solution which is truly right for them.
Over the past 12 months, we have seen a wide range of different IVA acceptance criteria from different lenders. This has resulted in many people in serious debt not being able to take advantage of the IVA legislation designed to help them, simply because they have the ‘wrong creditors’.
If agreement can be reached on reduced fee levels, this will clearly be good news for the banks. However, such a move must go hand in hand with robust standards from the banking sector regarding IVA acceptance criteria. If we can reduce the uncertainty about what is and is not an acceptable IVA proposal in the eyes of the banks, then the most appropriate advice can be given, which will mean good news for the debtors as well."
In May, Thomas Charles released the results of their latest quarterly insolvency research showing a correlation between age and insolvency. Click here to view the results.
CONSUMER DEBT:
Top tips
- Don’t bury your head in the sand. Try working out your financial position using the debt-help-uk.org.uk ‘debt wizard’.
- Consider transferring credit card debt to a 0% card while you deal with more pressing bills, such as any council tax or mortgage payments. But don’t use this as an excuse to run up more debt elsewhere.
- Don’t take out other loans to pay off the original debt or use a consolidation loan. If you must do this, be disciplined and don’t use the new loan money for anything else.
- Talk to your creditors about structuring a realistic repayment plan.
- If you cannot do a repayment plan and you do not want to go bankrupt then try an IVA. Visit IVA.co.uk or call the IVA helpline (0800 197 48 38).
- If you want to consider bankruptcy then try the Citizens Advice Bureau (citizensadvice.org.uk)
Useful contacts
- CAB: www.citizensadvice.org.uk
- IVA Helpline: 0800 197 48 38 (www.iva.co.uk)
- Bankruptcy Help Website: www.bankruptcyhelp.org.uk
- The Insolvency Practitioners Association: www.insolvency-practitioners.org.uk
About Thomas Charles & Co Ltd
Thomas Charles & Co Ltd was set up in 2004. The Joint Managing Director, James Falla has 7 years experience in the insolvency and debt management industry and was involved in the set up of debt help specialists, Brookvale Group PLC, listed on OFEX since 2001.
Thomas Charles operates throughout England and Wales with its head office in Acton (West London). It has a personal, consultative approach to debt management. It focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangement and Bankruptcy. However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party Insolvency Practitioners around the UK.
About James Falla
James Falla has advised people who have personal debt problems since 1997. During this period he has helped 1000s of people through the IVA process and worked with many others who have decided to undertake both Bankruptcy and informal Debt Management Plans.
James co-founded Thomas Charles (www.thomascharles.com) with William Berry in 2004 with the objective of providing clear impartial advice and solutions for people in serious debt. James has made numerous TV and radio appearances, including BBC1 News, BBC News 24, and Wake Up To Money
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