New standards set to help people in debt

Step by step standards to help people in serious financial trouble to resolve their debt difficulties have been agreed by banks and providers of Individual Voluntary Arrangements (IVAs), the British Bankers Association announced today.

IVA providers and the credit industry, led by the BBA, have worked closely with the Insolvency Service to agree a streamlined process for consumer IVAs, setting industry standards for: advertising, advice, information and documentation as well as improving transparency. The new process should be in place from February next year, giving people certainty that IVA providers adhering to the standards will operate openly and fairly to help people take the right path back into solvency.

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. The BBA, the Insolvency Service and the participating IVA providers are united in support for this agreement, which should provide customers with the reassurances they need in order to make the right choice for their financial futures."

"The agreement sets out the standards that will apply to creditors and IVA providers in most IVA cases. It was agreed by representatives from the creditor, insolvency, advice and consumer sectors, under the chairmanship of the Insolvency Service. Further work is underway to provide accessibility to better market information on IVAs via the worldwide web.”