AIM-quoted debt-resolution company, ClearDebt Group Plc (“ClearDebt”), welcomes revelations that banks may significantly restrict fees payable to IVA providers, that IVA providers are likely to receive a smaller element of their fees upfront and will share the risk of IVA failure with creditors.

• ClearDebt welcomes proposed new fee structure from banking industry
• ClearDebt to lower its fees

It appears likely that, following an IVA summit to be held in London on 31 May 2007, many creditors will announce that the price for their agreement to accept IVAs will be to demand that IVA fees are held to around £4,500 per case and that the largest element of the fee will not be taken up-front but will be proportionate to the debt recovery achieved by the IVA and the length of time it remains in force.

ClearDebt was set up with a low cost IVA administration model and the Directors believe that it has always had some of the lowest fees in the market place. Now, with immediate effect, ClearDebt announces that it has lowered IVA Nominees’ fees to £1,500 for debts in excess of £15,000. ClearDebt still offers a nominee’s fee of £750 for IVAs with debts of between £7,500 and £15,000 – ClearDebt believes that it is the only operator to be able to deal with debts this small.

Commenting on these changes, ClearDebt CEO, David Mond, said:

ClearDebt was set up because I believed IVAs were the best and fairest deal between debtors and creditors and that there was a niche to be filled in a market which appeared to be restricted to higher-value debtors.

We have always operated as a low-cost IVA company and believe that we have the systems and culture in place to benefit from this change in the market.

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For further information:

David Mond / Andrew Smith, ClearDebt Group plc    Tel: 0161 228 7444

IVA contributions protected on all suitable IVAs • No charge to debtors – lowest possible cost to creditors • Provides stability and confidence for both debtor and creditor
CLEARDEBT GROUP PLC (“ClearDebt” or “The Group”)

ClearDebt launches IVA Protect – Payment Protection Insurance

Highlights

• IVA contributions protected on all suitable IVAs
• No charge to debtors – lowest possible cost to creditors
• Provides stability and confidence for both debtor and creditor

Aim-quoted IVA provider ClearDebt today is pleased to announce the introduction of “IVA Protect” – payment protection insurance for all ClearDebt IVA’s.

ClearDebt believes it is the first IVA provider to make available such a policy, insured through Lloyd’s of London Underwriters, Cassidy Davis part of Jubilee Managing Agency Limited. As a corporate, rather than a retail product the insurance will be applied to all ClearDebt IVAs

IVA Protect has been deliberately created to pay out whenever possible as its aim is to enhance debtor and creditor confidence that their IVA can last the distance; increasing ClearDebt’s stature as the partner of choice for both creditors and debtors.

ClearDebt will not receive any commission on this Policy.

The Policy, brokered by Willis, will cost 4% of the contribution offered to creditors by each debtor. It will not increase the amount a debtor has to pay. Cover is likely only to be declined if the debtor is aware of any impending redundancy or debilitating illness.

The policy is designed to protect the debtor’s monthly IVA contributions and can pay up to 12 months’ for any one claim, should a debtor be unable to work due to an accident, illness or involuntary unemployment. Accident and illness are covered from the day the debtor’s proposal is accepted. A 90 day qualifying period applies only to unemployment. Further occurrences of unemployment or illness will also be covered for additional 12 month periods.

David Mond, CEO of ClearDebt Group Plc said,

“Our aim is to ensure our IVA’s are the best possible for both debtors and creditors. Creditors will benefit from lower IVA failure rates and our low, fixed fee structure means we will still produce higher returns than our competitors to creditors.

“Taking no commission means creditors receiving a better dividend and the policy will remove the worry of unemployment or serious illness for debtors in IVA’s.

IVA Protect will allow ClearDebt to offer the best service to both creditors and debtors. We believe that it will strengthen our level of passed IVA’s and help ClearDebt with its aim of achieving the industry’s lowest failure rate.”

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For further information please contact

David Mond, CEO ClearDebt Group Plc
Tel: 0161 244 5433

Andrew Smith, Director of Marketing ClearDebt Group Plc
Tel: 0161 244 5433 …/more

Paddy Blewer, College Hill Associates
Tel: 020 7457 2020

David Youngman, W H Ireland
Tel : 0161 832 2174

Note for Editors:

ClearDebt is AIM quoted under the ticker CLEA.L

ClearDebt aims to provide the most transparent and ethical service to debtors, at the lowest cost – giving many more people the opportunity to arrange an IVA than has been possible before. All customer-facing staff are trained in IVA provisions and all have insolvency practice experience: ClearDebt is not a call centre, nor do ClearDebt employ call centre type operatives.

ClearDebt’s principles include providing best advice wherever possible to all debtors: Where the facts indicate an IVA is the right solution ClearDebt will provide advice and support – but never pressure – to the debtor. Where the facts indicate other solutions ClearDebt will point the debtor in the right direction.