In this scheme, which ClearDebt believes is unique in the industry, the debtor’s monthly IVA contributions can be claimed for up to 12 months should a debtor be unable to work due to an accident, illness or involuntary unemployment.
“Our aim is to ensure our IVAs are the best possible for both debtors and creditors. Creditors will benefit from lower IVA failure rates and our low, fixed fee structure means we will still produce higher returns than our competitors to creditors,” said David Mond, CEO of ClearDebt.
Unlike many other forms of PPI, which have been criticised for the cost this adds to consumer loans, ClearDebt stresses that this will not be an extra charge to IVA holders.
IVA Protect has been deliberately created to pay out whenever possible as its aim is to enhance debtor and creditor confidence so that their IVA can last the distance, the firm adds.
“Taking no commission means creditors receiving a better dividend and the policy will remove the worry of unemployment or serious illness for debtors in IVAs,” concluded Mr Mond.