Why do IVA providers like Accuma insist on making misleading statements about the fees they charge for IVAs ?
Check out the IVA FAQs on the Accuma website and you'll find that - just like Debt Free Direct - they play the same kind of word games when they talk about their fees.
Accuma claim that : "Unlike a Debt Management Plan, the IVA is funded by your creditors. In this regard, Accuma will never charge you a fee." and they then go on to say that.... "An Accuma IVA is free of charge because your creditors cover the costs. The proposal, implementation and management of an IVA is time consuming and expensive. As these costs are covered by your creditors, they reduce the amount that is eventually repaid to them."
Well, not quite. I've said it before but it bears repeating. Creditors agree a minimum percentage that they are prepared to accept. This sum is worked out and the IP's fees are added to the total due to creditors to work out the monthly instalments. Those instalments are paid by the debtor.
Thomas Charles spell this out on their site. They say how much an IVA will cost and it is worthwhile quoting what they have to say in full.
Thomas Charles quite clearly say: "The IVA agreement is not undertaken for free. You will need to use a specially licensed person called an Insolvency Practitioner to undertake an IVA. Thomas Charles & Co Ltd can arrange this for you. The Insolvency Practitioner will normally charge two fees: A Nominee Fee and a Supervisor’s Fee. These fees vary but as a guide, most Insolvency Practitioners charge a Nominee Fee of £2,500 and annual Supervisors fees of £1000.
This is a straightforward and honest explanation. There is no such thing as a free lunch. So why do companies like Accuma insist on mis-selling IVAs as if they were free ?
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