Consumers struggling with debt problems may be entitled to more help after authorities struck a deal over the way Individual Voluntary Arrangements (IVAs) can be promoted and run.
After a number of discussions over the last few months, the Insolvency Service and British Bankers` Association (BBA) have agreed to a range of new regulations which will ensure greater transparency in the IVA sector – and February 1st saw the introduction of various new industry standards concerning advertising, advice, information and documentation.
BBA chief executive Angela Knight said: "People in debt and their creditors need to know that when an IVA is proposed it is the most appropriate solution."
An IVA is a formal agreement between the debtor and their creditors to pay off a portion of the debt over a five-year period. After that period is over, the debt is legally written off.
