|
News Index
Next
Previous
Banks are arguing for a change in the way debt advisory firms advertise and give
advice on IVAs.
They argue that advertisements for IVAs may not paint a fair picture of their
ability to help consumers.
Despite being introduced as an alternative to bankruptcy by the Insolvency Act
1986, IVAs have become more common recently, when changes to the law allowed
consumers to be discharged from them after a year.
As a result, they have been increasingly used as a way to help consumers with
their payments on their spiralling debts.
Eric Leenders, director of the British Bankers Association (BBA), said the body
was "looking to progress conversations" with both the DTI and OFT about the way
IVAs advertise and advise customers.
The BBA is targeting the advertising of IVAs,pointing out examples of debt
management companies that claim an IVA could write off as much as 95% of a debt.
The banks also argue that the rates may not make clear the level of the fees
levied by debt management companies, and that consumers may not be aware that
they run a risk of remortgaging their homes.
The Insolvency Practitioners Association is also calling for the review of
regulations governing the handling of cases.
The association is concerned that the bulk of initial advice and caseload is
handled by unregulated call centre workers.
Source:
Getting Paid
|
