BusinessBusiness RecoveryBanks are ‘frustrating debt resolution’

Banks are 'frustrating debt resolution'

New regulator in broadside against banks on IVA policies

The Debt Resolution Forum has claimed that banks and credit card companies
are plotting to ‘frustrate effective debt resolution in the UK at almost any
cost.’

The body, which represents 28 of the UK’s leading debt resolution companies
issued the incendiary comments earlier today.

DRF chairman Chris Holmes said: ‘Since January, the government’s Insolvency
Service, the British Bankers Association, the DRF and other bodies have been
working to create a protocol ostensibly to ensure over-indebted consumers have
access to affordable, achievable and certain debt resolution through the
Individual Voluntary Arrangement procedure.

Its move comes after the Insolvency
Service
criticised banks on their attitudes towards IVA fees.

‘Now, it’s apparent that many important creditors have decided to frustrate
this initiative with artificial barriers and hurdles that are denying debtors a
sensible route out of debt. The Insolvency Service is expressing concern that
the lenders’ approach may deny debtors access to a solution which is the best
for them, and for their creditors,’ he said.

Holmes added: ‘DRF believes that, unless an effective new deal is reached, an
explosion in bankruptcies is likely, which paradoxically, is likely to see
creditors get far less from those who have been over-lent, or who have
over-borrowed.’

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