AIM-quoted debt-resolution company, ClearDebt Group Plc (“ClearDebt”), welcomes revelations that banks may significantly restrict fees payable to IVA providers, that IVA providers are likely to receive a smaller element of their fees upfront and will share the risk of IVA failure with creditors.
- ClearDebt welcomes proposed new fee structure from banking industry
- ClearDebt to lower its fees
It appears likely that, following an IVA summit to be held in London on 31 May 2007, many creditors will announce that the price for their agreement to accept IVAs will be to demand that IVA fees are held to around £4,500 per case and that the largest element of the fee will not be taken up-front but will be proportionate to the debt recovery achieved by the IVA and the length of time it remains in force.
ClearDebt was set up with a low cost IVA administration model and the Directors believe that it has always had some of the lowest fees in the market place. Now, with immediate effect, ClearDebt announces that it has lowered IVA Nominees’ fees to £1,500 for debts in excess of £15,000. ClearDebt still offers a nominee’s fee of £750 for IVAs with debts of between £7,500 and £15,000 – ClearDebt believes that it is the only operator to be able to deal with debts this small.
Commenting on these changes, ClearDebt CEO, David Mond, said:
ClearDebt was set up because I believed IVAs were the best and fairest deal between debtors and creditors and that there was a niche to be filled in a market which appeared to be restricted to higher-value debtors.
We have always operated as a low-cost IVA company and believe that we have the systems and culture in place to benefit from this change in the market.
—
For further information:
David Mond / Andrew Smith, ClearDebt Group plc Tel: 0161 228 7444
