The British Bankers’ Association has agreed a code of conduct for Individual Voluntary Agreements, the body has said.
The BBA released a press statement on Friday saying it had hammered out a deal, though insolvency experts said the moves were not completely finalised.
Banks have long been unhappy about the rise of IVAs, which enable individuals to slash their debts. Some have argued that the IVA industry pushes too many people into the arrangements rather than bankruptcy.
Despite the BBA's statement, Nick O'Reilly, vice-president of R3, the insolvency trade body, said that there are still some sticking points in the agreement.
The BBA still has to clear with its members over arbitrary minimum limits over IVA repayments.
Banks often specify that they will not accept an IVA for less than a certain number of pennies in the pound.
O'Reilly said: 'There is still a possibility the BBA will come back and say that certain banks won't agree.'
The new guidelines, forecast to come into force as early as February, will help standardise IVA procedures, particularly the assessment of the income and expenditure of over-indebted consumers.
The new regime is expected to give banks more confidence that debt management companies are adhering to set standards.
Further reading:
Ex-PwC man to run finances at Debts.co.uk
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