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Consumers `struggling to cope with mounting debt` Bankruptcy increases by 7% `More Brits applying for personal loans` 70% of Brits `without unsecured loans` Pre-paid cards `more popular as debt rises` IVAs `a real alternative` to bankruptcy Brits `trying to escape credit crunch` by moving abroad West Sussex consumers suffering debt IVA agreements increase Industry body welcomes IVA mailing probe OFT to target bogus IVA companies IVAs can be "helpful" for large debts IVAs - consumers warned about bogus deals Insolvency rates rising IVAs can be "better option" than bankruptcy IVAs are `helpful but should not be taken lightly` IVAs `good to get out of tricky situations` People should "think very carefully" before entering an IVA IVA `saved businessman`s house` Govt unveils new IVA code

Creditors `should be fair with IVA acceptance`

22/06/2007

Creditors should act fairly when deciding whether or not to accept an individual voluntary arrangement (IVA) from a debtor, it has been claimed.

According to Myvesta UK, "arbitrary rejection rates" from creditors are creating an inequality for consumers who are seeking to reduce their high levels of debt.

An IVA should be a "fair and reasonable repayment proposal", the website says, adding that creditors should be careful not to punish debtors whose offers do not suggest paying back at least 40 per cent over five years.

"These repayment rates that lead to the rejection of perfectly good repayment offers appear to damage consumers," it says.

"It appears that consumers that have had repayment proposals rejected by these `out of the blue` … obstacles would have a reasonable case of pursuing creditors for damages because they were essentially forced to go bankrupt when their reasonable repayment arrangement had been refused."

In related news, potential changes to IVAs, including a standard application process, were recently discussed by Eric Leenders of the British Bankers Association.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according