IVA Scam UK: Spot a Fake Debt Solution Firm
Fraudsters are posing as debt advisers to steal thousands from people trying to manage their debts through an IVA.
What an IVA scam looks like
An IVA (Individual Voluntary Arrangement) scam pressures you into signing an unsuitable IVA, or takes an upfront fee from you before providing genuine advice, often after finding you through an online search for debt help. An example of the style is: We can set up an IVA that writes off up to 80% of your debt. Pay a £199 assessment fee to begin the process today.
An IVA is a real, formal debt solution, but it is not right for everyone and has serious consequences, including affecting your credit file for years. This guide shows the warning signs, how to find genuine advice, and what to do if you have already paid a fee.
Why these approaches are convincing
Financial difficulty is stressful, and a firm that appears after you search for debt help online can feel like a natural next step. Legal-sounding language about IVAs makes the pitch feel official, and the promise of writing off most of your debt is exactly what someone struggling wants to hear.
The fact that protects you: free, impartial debt advice is available in the UK before you commit to any solution, and a firm that pushes you towards an IVA quickly, or demands a fee before proper advice, is a serious warning sign.
Signs an IVA offer is a scam or bad advice
- You are contacted or find a firm shortly after searching for debt help online.
- It pushes you towards an IVA specifically, without discussing other debt options first.
- It charges a large upfront fee before you have received proper advice.
- It plays down the serious consequences of an IVA, such as its effect on your credit file.
- It pressures you to sign quickly or discourages independent advice.
- You cannot find the named insolvency practitioner on the Insolvency Service's register — every genuine IVA is run by a licensed insolvency practitioner.
How the scam works
First, you search for help with debt and are contacted by, or find, a firm offering a quick IVA solution. Second, a large upfront fee is requested before proper advice is given. Third, you may be signed up to an IVA that is unsuitable for your circumstances, or simply lose the fee. Fourth, the IVA's effect on your credit file and finances lasts for years, regardless of whether it was the right solution.
Getting free, independent advice on all your options before committing to any solution is the strongest protection.
How to find genuine debt advice
Free, regulated debt advice is available before you commit to an IVA or any other solution — and check the solution fits where you live: IVAs are available in England, Wales and Northern Ireland, while Scotland has its own formal debt solutions, including protected trust deeds and the Debt Arrangement Scheme.
- Contact a free debt-advice organisation such as StepChange, or National Debtline if you are in England or Wales, before agreeing to anything.
- Use MoneyHelper's debt advice locator to find free, impartial help.
- Ask about all your debt options, not just an IVA, and understand the pros and cons of each.
- Ask for the name of the licensed insolvency practitioner who would run your IVA and check them on the Insolvency Service's register of insolvency practitioners. IVAs are administered by licensed insolvency practitioners rather than FCA-authorised IVA firms, so a genuine IVA provider may not appear on the FCA register at all. A separate firm that gives you debt advice must generally be FCA-authorised; a lead generator that only takes basic information and provides factual information may not be authorised, but it must not give debt advice.
- Never pay a large upfront fee before receiving genuine advice. Genuine IVAs do involve fees for the insolvency practitioner's work, and under the consumer IVA Protocol these are normally included in the monthly payments rather than charged upfront — so the warning sign is a separate upfront fee demanded before proper advice, not the existence of a fee itself.
If you are unsure whether a linked site is genuine, our guide on Is This Website a Scam? A Practical Checklist Before You Buy helps, and our Debt Relief Scam UK: Spot a Fake Debt Help Company guide covers the wider upfront-fee debt-help pattern.
If you have already paid a fee or signed up
Act now using the payment, account and identity steps in our scam recovery checklist.
How to report an IVA scam (UK)
If the contact came by email, forward it to the NCSC at report@phishing.gov.uk; if by text, forward it to 7726.
If you lost money, report it to Report Fraud at reportfraud.police.uk or on 0300 123 2040 if you are in England, Wales, or Northern Ireland. In Scotland, report to Police Scotland on 101. You can also report unauthorised debt advice or debt adjusting activity to the Financial Conduct Authority. Keep all your documentation as evidence.
Frequently asked questions
Is an IVA always a scam, or is it a real debt solution?
An IVA is a real, formal debt solution, but it is not right for everyone and has serious long-term effects on your credit file. The scam risk is firms that push you towards one quickly, charge a large upfront fee, or skip proper independent advice.
A firm found me after I searched for debt help online — should I be cautious?
Yes, be cautious. Get independent advice from a free debt-advice organisation before agreeing to anything a firm you found this way suggests, especially if it pushes a specific solution or fee quickly.
How do I know if an IVA firm is legitimate?
Ask for the name of the licensed insolvency practitioner who would supervise your IVA and check them on the Insolvency Service's register of insolvency practitioners — IVA firms operate under insolvency practitioner licences from professional bodies rather than FCA authorisation, so absence from the FCA register is not itself a scam sign. Be very wary of any firm demanding a large fee before explaining your full range of options.
I've already paid an upfront fee — can I get it back?
Possibly. If you paid by card, ask your bank about a chargeback. Eligible UK transfers since 7 October 2024 may fall under APP reimbursement rules, subject to limits and exclusions. Get independent advice on your actual situation regardless.
How do I report an IVA scam?
Forward scam emails to report@phishing.gov.uk and scam texts to 7726. Report it to Report Fraud in England, Wales, or Northern Ireland, or to Police Scotland on 101 in Scotland, and consider reporting to the FCA.
Sources checked
- MoneyHelper — Debt advice locator
- GOV.UK — Get help with debt
- Insolvency Service — research into Individual Voluntary Arrangements (IVAs available in England, Wales and Northern Ireland)
- GOV.UK — IVA Protocol: key facts (practitioner fees included in monthly payments, not upfront)
- mygov.scot — Trust deeds (Scotland's formal debt solutions)