The IVA Protocol forthcoming challenges

1
The IVA Protocol - forthcoming challenges

• David Mond
• CEO
• ClearDebt

2
2008 - A year of change?

• The IVA Protocol
• The Debt Resolution Forum
• The IVA Industry now
• Creditor behavior
• Debtor need

3
The IVA Protocol

• Huge achievement
• Not an end in itself beginning of a process
• Need for transparency on all sides
• Debtors voice must be strongly heard

4
Debt Resolution Forum

• 28 Founder members
• Now re-opening membership book
• Agreed (and widely applauded) standards
• NOT a talking shop

5
Debt Resolution Forum

• 150,000 of grant funding
• Properly accredited Certificate in Debt
  Resolution - for all client-facing staff
  (February 2008 - first exams September)
• Independent accreditation, monitoring and
  investigation - through IPA.

6
Debt Resolution Forum

• Will be a bona-fide quality mark.
• No need for TIX accreditation.

7
The IVA Industry now

• Impact of lower fees
• could diminish capacity (at least for a while)
• Insolvency profession cannot take up slack
• BUT
• Market need remains
• NATURE ABHORS A VACUUM

8
Creditor Behaviour

• Creditors must accept principles that debt
  resolution should be
• Achievable by the debtor
• Affordable for debtor and creditor
• Represent the debtors best efforts
• Creditors must recognise debtors efforts - and
  motivate them to succeed

9
Creditor Behaviour

• Creditors must abandon artificial barriers to
  IVAs
• Artificial hurdle rates
• Arbitrary expenditure guidelines
• Spanish practices

10
Debtor Need

• 2005-6s debtors are entering IVAs now
• Remortgage crisis
• Credit crunch
• House price errr.. correction

11
An agenda for the IVA community

• Use IVA protocol to rebuild trust
• Use IVA standing committee to restore
  transparency
• Help DRF become trusted quality mark for debt
  resolution
• Ensure debtors get the certainty they need, and
  creditors the results they deserve.
• DEBTORS FUTURE CUSTOMERS