Bankers to draw up industry standards with IVA groups
British Bankers' Association announces plans to join forces with anti-bankruptcy experts to devise a rulebook for the booming IVA industry
The British Bankers’ Association
and representatives of the IVA industry are teaming up to draft a standardised
rule book to ensure debt practitioners are operating on a level playing field.
Concerns were raised in relation to the advertising of services and
the differing standards of advice that customers could expect from industry
participants, which prompted the move.
Banks have alleged that some IVAs have been mis-sold and the ramifications
not fully explained, The Daily
Telegraph reported.
In addition to the customer advice guidelines, the new code will also focus
on making related charges and fees for IVAs more transparent.
In a statement, BBA said: ‘The BBA and registered IVA providers have also
agreed to set up a register of responsible insolvency practitioners who
subscribe to the code, so customers can choose debt advisers with confidence. It
is hoped the Code will be in place by Easter 2007.’
Related links:
HSBC warns on rising insolvency
figures
Half empty: the effect of bad debt