New standards for IVA providers come into force

A new set of standards to help people resolve their debt difficulties through Individual Voluntary Arrangements (IVAs) will come into force on Friday, following an agreement struck today between IVA providers and the credit industry.

Borrowers who can no longer afford to repay what they owe now have the protection of agreed industry standards for advertising, advice, information and documentation, as well as higher levels of transparency. Borrowers can be assured that IVA providers adhering to the standards will operate openly and fairly to help people take the right path back into solvency.

The standards were agreed at a meeting today between IVA providers and the credit industry, led by the British Bankers’ Association and facilitated by the Insolvency Service, to establish a streamlined process for consumers seeking IVAs.

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.