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IVA plans backed by banks

Thursday 20th December 2007

Banks could be more engaged in the provision of individual voluntary arrangements (IVAs) following an announcement by the British Bankers Association (BBA).

The industry body has revealed it is to support plans for "step by step standards" to be introduced to determine the ways in which banks approach IVA customers.

February 2008 has been set as the initial introduction date for the standards, from which point onwards the organisation hopes that Britons in debt can be offered greater assistance by their financial services provider.

Chief executive of the BBA Angela Knight explains: "People in debt and their creditors need to know that when an IVA is proposed it is the most appropriate solution."

She adds that the new guidance "should provide customers with the reassurances they need in order to make the right choice for their financial futures".

Under the terms of the agreement, advertising, advice and documentation relating to IVAs should become clearer and more "streamlined".

And Ms Knight adds that the scheme is expected to extend to include online IVA promotions following further discussions.

The industry-wide consultation has seen the BBA liaise with the Insolvency Service, as well as with representatives of the credit, insolvency, consumer and advice sectors.

Meanwhile, the governments Department for Business, Enterprise and Regulatory Reform (Berr) has also stressed the assistance being offered to people in debt.

This includes the National Debtline telephone advisory service, which Berr states is helping 4,500 individuals every month.

And since its launch in January 2006, more than 8,000 web users have now visited the Debt Test page, which helps them to identify ways in which to tackle their personal finance problems.©

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