Standards for Debt Management Put in Place
Bankers and credit providers working together have developed a new set of standards to help people with high levels of debt. Individual Voluntary Arrangements (IVAs) will give them access to tools to help them manage their finances, according to the British Bankers’ Association (BBA).
Providers that offer IVAs will be subject to industry-wide standards governing advertising, advice, information and documentation. The BBA explains that the standards, which should be in place by February 2008, will streamline the application process for IVAs.
Angela Knight, Chief Executive of BBA, wants borrowers and creditors to understand that an IVA recommendation is the best way to resolve debt problems.
The standards should give borrowers more confidence as they make decisions about their financial futures, according to Knight.
The Government’s Insolvency Service reported 26,956 people in