Creditman are reporting the launch of a new bankruptcy advice site and bankruptcy forum by the organisers of IVA.co.uk, the UK’s biggest online community for information and advice about Individual Voluntary Arrangements.
BankruptcyHelp.org will be operating alongside the seemingly well subscribed bankruptcy board on Martin Lewis' Money Expert site and the bankruptcy forum on the Myvesta site but any new initiative that might do something to counterbalance the aggressive sales activity on the IVA front has to be welcomed. It certainly provides some antidote to our report on adviser recruitment in Manchester.
As the new site develops and the forum attracts members it will be interesting to see how the independence of the new site is maintained. The forums on IVA.co.uk are well supported by practising experts - including a very experienced independent IP - who volunteer their own time to provide advice but commercial providers can also post on the site.
Both Thomas Charles and their parent company Accuma are, for example, contributors to the site and although their online advice seems to be objective there is at least an enlightened self interest in their regular association with the site. It will be interesting to see if the less lucrative field of bankruptcy advice attracts similar expertise.
Showing posts with label Thomas Charles. Show all posts
Showing posts with label Thomas Charles. Show all posts
Saturday, 3 March 2007
Sunday, 4 February 2007
Accumagroup.com - Misleading Punters On Fees ?
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 ?
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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