I have a mortgage shortfall that we made the mistake of acknowledging and provided income and expenditure details. This was in 1994. We have continued to pay and have never received a statement of accounts or even a receipt of payment from the account. The account has now been passed to GO-Debt debt collection and they have asked for a revised income and expenditure sheet, which we did. We are now being asked to pay a Pro-rata payment to them from our income, which will have a detrimental affect on our credit rating and our other creditors with which we have never had any problems. (It took us a fair time to get back to a healthy credit position, after we were repossessed.) We want finish this and have seen the service that IBAS provide.

Can anyone endorse the service that this company provides as I cannot see how they make their money? (The cost of their service £195.00). Are there any additional costs that they may charge?

Any input would be welcome.

-- Keith Smith (yamxvs11000@hotmail.com), October 29, 2004

Answers

Keith,

I have heard from people who have had both negative and positive experiences using IBAS. I think you will find that all these sorts of companies also profit by receiving money from the creditor for obtaining a settlement. Of course, there is nothing wrong in this, but I ask myself the question... in whose interest are they going to operate most ? Some of the settlements I have seen from them appear expensive, but of course it's difficult to say for sure when you aren't in command of all the facts. So I'm afraid it's a question of you pay your money and you take your chance. Bare in mind too it's not easy to find qualified people to take up these sort of cases for a small layout.

The following info from a previous posting may be of interest:

I would just like to point out that many county courts now have duty advice desks on mortgage possession days. These are staffed by advice workers from local CABx, independent advice centres, money advice centres, local authority housing depts, solicitors and law centres. The adviser on duty can advise you about your rights and may be able to represent you in court. To my knowledge, the following county courts in London have mortgage duty desks:

Bow, Brentford, Willesden, Shoreditch, Central London, Romford, Ilford, Bromley, Croydon, Wandsworth, Edmonton, Barnet, Uxbridge.

Also NACAB (National Associations of Citizens Advice Bureaux) has a website where you may be able to find the address and tel no of your nearest CAB.

FIAC is the Federation of Independent Advice Centres. We have over 950 advice centres in membership across the UK. About half offer debt advice, eg Mary Ward Legal Centre, National Debtline, Bristol Debt Advice Centre etc. All members give advice on any area which is completely free and confidential. To get details of your nearest FIAC member centre, contact FIAC on 0171 489 1800 or write to: National Money Advice Co-ordinator Federation of Independent Advice Centres 4 Deans Court St Pauls Churchyard London EC4V 5AA. Fax 0171 489 1804

Finally, I note you say that the account has now been passed to GO- Debt collection - what proof have you that this is official ? Has this debt been properly assigned to the debt collection agency ?? You need to get sight of the assignment document and show it to a qualified lawyer who can advise you whether or not it has been done properly.

Hope this is of some use and Good Luck.

Mark.

-- M Amos (idgroms@hotmail.com), October 29, 2004.

Hi Keith,

My husband has just settled a £37,000 shortfall demand on £5,000 through IBAS. My own personal recommendation is that they are marvellous, they gave us excellent advice, checked all our documentation before it was passed to Drydens, made sure that my husband's liability is at an end and even advised us when they were closed for a holiday period as to what to do. They are there to answer the telephone or e-mail enquiries at any point and specifically deal with shortfalls. They have brought an end to years of threats and letters from B&B and now we can move forward. They charge no additional costs.

-- Chris (chris@anon.co.uk), November 01, 2004.

"I think you will find that all these sorts of companies also profit by receiving money from the creditor for obtaining a settlement"

This is news to me Mark, never heard of this before from IBAS or other organisations.

Would you care to englighten us of your findings

-- fairer financial world (fairerfinancialworld@hotmail.com), November 08, 2004.

Hi,

Just to let you know that my husband and I used IBAS for a 32,000 shortfall problem with Paragon. IBAS negotiated a settlement of 6,000. We paid and that was the end of that! Fantastic service and advice.

Hope everything goes well for you,

Kat

-- Kat (dcp42@blueyonder.co.uk), November 15, 2004.

Hello everyone, I am just updating my case management conference posting and so you will see it also answers this IBAS thread. I contacted IBAS on 26th Nov, the Friday before the conference (which was yesterday 29th Nov). In one afternoon, IBAS gave me alot of advice and help on the telephone & email FREE. Then after IBAS fathomed out the case a bit, said they could help me even though there was only a couple of hours left before the court closed on Friday. I paid the fee and IBAS got a message direct to the judge in time. It has all turned out ok AND the judge ordered B&B to reimurse my £195 fee. So YES use IBAS and NO they aren't funded by creditors.

-- Hester Deackes (hesterd@tiscali.co.uk), November 30, 2004.

Having been made aware of this posting I felt it might help readers of this site if I explained exactly how IBAS works and dispel any misaprehensions as to how we are funded.

IBAS remains a non profit making organisation. Since it's inception in 1992 we have received no form of funding from any bank, lender or government body. Our only source of income is from membership of those whose cases we accept for investigation. The mortgage shortfall membership of £195 which has remained at this level for some years is a one off fee regardless of the volume of work involved and is only available at this level because we are non profit making.

I like my colleagues work on a voluntary basis. By operating in this way we are able to maintain total independence which is vital to represent the best interests of those we assist. Myself and colleagues carry out our work with discretion, realism, passion and above all honesty. It remains our firm belief that all confronted with a mortgage shortfall should be fully aware of accurate facts in order that they may make a balanced decision as to the way forward.

All cases accepted are fully assessed based on the file documentation. To offer an opinion without sight of all relevant information, which we obtain from the lender if necessary, would be dangerous and not conducive to seeking a resolution to a case. We are also committed to keeping abreast of new Case Law in order that our members can benefit wherever possible.

Our helpline is always available to answer concerns and enquiries and without obligation to become a member.

-- Hannah Birchams (hannah@ibas.co.uk), November 30, 2004.