Watchdog criticises IVA adverts
Published On 12 April 2007
The watchdog which regulates advertisements has ordered two ads for IVAs to be removed as they misrepresent how effective these agreements can be in managing debt.A press release from the Advertising Standards Agency said that the ads, which claimed that consumers could reduce debt by 75 per cent, "exaggerated the benefits of an IVA".
In response to the decision, the Citizens Advice Bureau said that it was pleased the potentially misleading adverts had been removed.
"Citizens Advice has seen cases of people being persuaded to take out IVAs when these are not appropriate, often with disastrous results," explained Peter Tutton, policy officer at the organisation.
"IVAs are not the right option for everyone. If people cant keep up repayments the IVA may collapse and leave them in even worse debt."
However, the British Bankers' Association (BBA) said that IVAs could provide an effective way of managing debt and the industry was constantly working to ensure consumers received the highest level of service.
"I am delighted positive steps are being taken to ensure that IVAs are promoted responsibly, especially as the industry has acted on its own initiative to engage with regulators," added Angela Knight, chief executive of the BBA.
