Here at ClearDebt, we have a Waiver of Contributions product which protects people’s IVA payments – and it pays out – and it works!

We are proud that 75% of the people who have made a claim (because they became unemployed, fell ill, or had an accident) since we introduced IVA Protect in 2008 are still making payments into their IVAs. 66% of the claims made were settled and only 25% declined. Without IVA Protect it is likely that most of these Individual Voluntary Arrangements would have failed – and both the clients and their creditors would have lost out.

We set out to provide something that would help people who fell on even harder times to keep paying their IVA (and thus their creditors).

Our IVA Protect product  means that people who can’t pay their monthly IVA contribution because they become unemployed, get ill or have an accident, have their IVA payment made for up to 12 months, up to three times in any five year period – with not less than a month between each claim.

We believe in this product so much that we use a captive insurance company to provide it. ClearDebt is the insured party so the majority of people in a ClearDebt IVA get the cover. Where the creditors agree, they pay (just 3.25% of the IVA contribution value). Where they don’t (perhaps, cynically, because their experience of this type of cover is that it didn’t work for their clients) ClearDebt pays.

Interestingly, of course, this product doesn’t just benefit our clients – who get the best possible chance to complete their IVA, but it also benefits the banks and credit card companies who are getting ready to settle billions in miss-selling claims.