Share prices of debt management firms plunge
Debtmatters' price drops by a massive 73%, as experts warn that the market has become tougher, especially for IVAs
Credit companies’ shares are falling fast.
Debt management companies saw their shares plunge yesterday after a leading
player warned that the market had become tougher, particularly for individual
voluntary arrangements that allow people to restructure their debts to avoid
bankruptcy.
Debtmatters saw a 73% share price drop after announcing a scale back because
it believed it ‘may no longer be able to deliver IVAs profitably’.
Firms affected included Accuma and Debts.co.uk whose
shares dropped 23% while Debt free Direct went down by 29%,
The
Guardian reported.
Firms have recently come under fire for encouraging people with large debt to
agree to an IVA instead of informal arrangments with creditors. But banks and
credit card companies are now cutting back on the fees they are prepared to pay.
Further reading:
Debtmatters
shares nosedive in IVA fears
IVA
firm in trouble as banks get tough
Banks’ attitude to IVAs under fire