View more on these topics

W3 Debt Solutions promotes IVA scheme

New figures released from W3 Debt Solutions show that banks and other lenders should recover an average of 48p in the pound of their unsecured bad debts under W3s Individual Voluntary Arrangements schemes.

Reducing bad debts will be increasingly important for lenders as bank base rates climb from their current levels of 4.75% to a predicted 5% this month. Inevitably the pressure will increase on borrowers as mortgage and other credit costs increase.

W3 suggests full transparency on likely returns to creditors should become industry best practice among IVA specialists. It believes that banks and other lenders should know how much to expect from IVAs taken out under their supervision.

The rise in popularity of IVAs has created a fast growing market, currently worth around an estimated 130m per annum, as people in serious financial difficulty use them to reschedule debts run up on credit cards and loans.

The market for IVAs is growing quickly and some estimate it could be significantly larger in a years time. Latest figures from the Department of Trade and Industry showed a 153% rise in the number of IVAs since August 2005.

Greg Mullarkey, chief executive of W3 Debt Solutions, says: We believe companies operating in the IVA market have a duty to protect creditors as well as people in debt. It is therefore important that our leading practitioners are as efficient as possible so that creditors receive the best possible returns in each set of circumstances.

All professionals working in the IVA market should make it clear how much they would expect to return to creditors. There is a place for IVA solutions as a means of maximising debt recovery. But the IVA industry will work better if we collaborate with creditors and they share more of the benefits from economies of scale produced by reduced costs and therefore higher rates of recovery.


When lenders compete, brokers win

This year’s Benchmark Study on lender technology shows lenders becoming increasingly innovative which means the true winners will be brokers, says Frank Eve

Young professionals feel pressured to spend

Three quarters of young professionals feel pressure to spend thousands of pounds that they cannot afford, reveals a report. The Professionals Report, commissioned by Standard Life Bank, revealed that 75% of young professionals in the finance, legal, education, media and art and design sectors, felt that other people assumed they were earning more than they […]

GMAC-RFC to work with CML over its lender ratings

GMAC-RFC is liaising with the Council of Mortgage Lenders to revise the methods it uses to calculate its league table of the UKs largest mortgage lenders. The lender says the CML largest mortgage Lenders league table, used by the industry to benchmark gross lending figures, does not compare lending over the same period of time […]

Mortgages PLC appoints marketing manager

Mortgages PLC has appointed Kirsteen Gibb to the newly created role of marketing communications manager.Gibb is responsible for managing all aspects the lender’s brand communications activity including advertising, marketing materials and events. Based in Glasgow, she reports to head of marketing, Julian Wells. Previously marketing communications consultant with Norwich Union International, Gibb has relocated from […]


News and expert analysis straight to your inbox

Sign up