IVA providers meet to discuss debt
Published On 2 June 2007
Members of the banking industry - including IVA providers and other insolvency practitioners - have agreed an action plan to help people with severe debts get out of financial trouble.At a forum last week, these lenders and IVA providers met to discuss how the UK's debt problem could be effectively and fairly managed.
While detailed implementation protocols are due to be put in place by the end of the year, the forum did agree on the areas in which action was needed.
These included agreeing the basis on which IVA providers will collect their fees, but not the level of fees, as well as ways in which customers can be better helped to understand the benefits and risks of IVAs.
"The IVA forum was positive and constructive. It gave lenders and the debt industry an opportunity to discuss the draft protocol proposals we have been working towards," explained Eric Leenders, the executive director of the British Bankers' Association (BBA).
"Everyone agreed the importance of making sure people in severe financial trouble get the right advice for them. This is crucial in helping people to work their way out of their money worries."
Earlier this year, the Insolvency Service published figures which showed a sharp rise in the number of people seeking IVAs in the UK.
The data showed that the number of IVAs issued in the first three months of the year increased by 47.5 per cent when compared to the same period in 2006.
