Interview with Howard Wilson from Debt Solutions Ltd,
Tell us a little about your company:
In 1999 I was working as head of the mortgage arrears team with a major lender with responsibility for visiting people at home to discuss mortgage repayment plans. I fully expected my role would be made redundant so I decided to capitalise on my skills and knowledge of arrears and personal debt and set up Debt Solutions Ltd, a company which helps the debtor rather than the lender. You might call me gamekeeper turned poacher. We run debt management plans for people and also recommend Individual Voluntary arrangements (IVAs) where applicable. I am also a qualified mortgage adviser, authorised and regulated by the Financial Services Authority so I can give practical help to those whose debts may have an impact on their property if they are homeowners.
What is the toughest part about having a debt problem?
Trying to get the lenders to understand that you have a problem, that it is not simply a case of reckless spending, and that you are doing your best to repay your debts. They often won’t listen and they add all sorts of penalties: late payment fees, over limit fees etc. This is hardly helpful to someone who is really struggling and trying to do the right thing. In the end it’s no wonder people give up.
Why do you think so many people are getting into trouble with debt today?
There is reckless borrowing as well as reckless lending. We live in a ‘I want it now’ society and with so many offers of credit falling through the letterbox, it’s easy to succumb.
There has been an increased interest in student debt from the media. What is your companies view on the seemingly ever increasing levels of student debt?
This is more of a political issue. Further education is no longer provided free by the State so if you want to go to uni you have to pay for it. Interestingly, student loans are now excluded from bankruptcy so it’s no longer possible to avoid repaying your student debts (unless you earn below the lower income limit)
What does your company offer to help people who are “in over their heads”?
We look at all options, not just IVAs. These include debt management, secured lending if it is appropriate, re-mortgages, even giving advice if debts are affordable. Our advice is free although as we are an independent company we do charge a fee for work we are instructed to do. The ‘free’ services like the CAB are funded by local government through your council tax and some debt charities or collection companies are paid a commission by the lender. We charge the client and we act for them, not the lender. It’s a bit like paying for private health or dental care, or even private or university education.
The number of IVA cases seems to be increasing faster than those of Bankruptcy. Why do you think this is?
There has been a big rise in the number of companies setting up as IVA consultants. People need to be very careful when dealing with some. If an IVA is to be recommended the consultant has to be pretty sure that it meets the criteria. It’s easy to tell someone they need an IVA, pocket the fees and then shrug it off when the IVA is rejected. This is a big issue and I have recently had meetings with the Insolvency Practitioners Association for my views on whether this activity should be better regulated.
Given the general increase in the number of people in debt, where do you think people are finding information about debt solutions such as IVA’s?
As in the previous question, many companies are actively chasing IVA business. Some of these companies are like the double-glazing salesmen of old. Sell the product whatever the cost.
Is there a common denominator amongst clients who turn to your company for help (apart from obviously being in debt)?
We only deal with people who are trying to pay their debts. These are referred to in the credit industry as ‘Can’t Pay’. We will not deal with the ‘Won’t Pay’ who simply use the law and legal processes to avoid paying.
Some last words of advice from your company:
Be comfortable with the advice you are given and, if it sounds too good to be true – it probably is. For debt management use a member of DEMSA, the Debt Managers Standards Association, and for IVAs ensure that the practitioner is a member of R3.
Call FREE on 0800 652 42 72
Website: www.debtsolutions.co.uk
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Charles & Co - the Debt Help Specialists |
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