Source: TDX Group
TDX Group, the UK’s leading debt management solution provider has launched a new service called The Insolvency eXchange (TIX) to deliver insolvency management services to creditors. TIX processes Individual Voluntary Arrangement (IVA1) proposals received by banks from Insolvency Practitioners, analytically decides which proposals to accept and then manages each IVA through the 5 year term of the agreement. Two of the UK’s top five banks, including HSBC, are to join as founder members and commit their IVAs to the service.
IVAs have become a significant issue for banks over the past year, with industry losses from insolvency set to exceed £6bn in 2006. The Insolvency Service reports the number of cases has grown by over 153% in the year to Q2 2006.
Mark Onyett, Chief Executive of TDX Group said, "The efficiency that TIX creates for the industry and the new level of scrutiny applied to IVA proposals will ensure an IVA is only set up where it is the most effective solution for a debtor and help increase dividends for creditors. By providing a single entity for Insolvency Practitioners to deal with, TIX introduces cost saving process efficiencies. It is our hope that TIX members, the IPs and the debtor will all benefit from the service."
TIX is a totally new approach to IVA management, enabling creditors to collectively decide IVA proposal acceptance criteria and establish industry standards. The service uses advanced analytics and technology to ensure all of the circumstances of each debtor are considered appropriately, allowing improved validation that an IVA is the most appropriate solution for the debtor.
Martin Hagerty, Head of Retail Credit, HSBC says, "Today's credit arena is typified by a proliferation of potentially misleading advertising, which can lead customers down a route that may not be in their best long-term interest. Without regulation to safeguard debtors and creditors, the industry needs to establish its own mechanisms such as The Insolvency Exchange to improve the scrutiny of IVA proposals and to ensure that both parties' interests are best served. This kind of specialised expertise is needed to ensure our shareholders' interests are considered and our customers' get the best impartial advice from Insolvency Practitioners and are not ushered into insolvency without understanding its full implications."
John Fairhurst, CEO of Payplan, a leading Insolvency and Debt Management company said, "We welcome the introduction of TIX. For Insolvency Practitioners wwho are giving the best advice to their customers and have invested in their processes and technology, it promises to offer a more efficient and effective way to manage IVAs. As an industry we are striving to improve the service we offer to our clients, and we are optimistic that TIX will help with the initial set-up and more importantly the ongoing management of our customers."