Banks and IVA firms ‘in positive dialogue’

Brian Capon, spokesman for the British Bankers’ Association (BBA), said that both sides agreed that any rogue elements in the IVA sector should be driven out.

He said there had been two rounds of talks between banks and IVA firms, and that insolvency services had been brought on board as well.

“We established a lot of common ground between us and the IVA providers at that meeting,” Mr Capon said.

He also commented that IVAs can be very helpful to people in financial difficulties as long as they are “in the right circumstances”, but added that anyone thinking of entering into an IVA should be fully aware of the implications.

According to the government, the IVA take-up rate in England and Wales has soared in recent months and credit reference agency Experian expects the number of IVAs to overtake the number of bankruptcies this year.