Clamp Down on Misleading IVA Adverts and Websites

The Office of Fair Trading has clamped down on 17 businesses promoting IVAs that it considered were potentially misleading consumers through their adverts and websites. Of particular concern were a number of potentially misleading statements, such as; Falsely claiming that “up to 90 per cent of your debt may be written off” when the maximum would be in the region of 60-70% Falsely implying they can guarantee a favourable outcome by the use of such phrases as “stop all interest and charges” Failing to state that home-owners may be required to re-mortgage their properties after three years Failing to state that entering into an IVA also affects an individual’s credit rating for six years. Lines Henry welcomes these steps. The unrealistic claims of some in the industry have long been a problem. The purpose of an IVA is for there to be a realistic and fair Proposal by a debtor to all of their unsecured creditors. It has to be fair and realistic to both debtor and creditors. IVA’s should not be looked at as a debt avoidance scheme, but rather the best offer in what are invariably difficult circumstances for all concerned.