Jon Bartman, managing director of Money Debt and Credit, told Channel 4’s News at Noon that banks are not “blameless” in contributing to Britain’s £1.3 trillion of personal debt and soaring use of IVAs and bankruptcy.
“I don’t think the banks are blameless. One must remember that it is the banks and the credit cards that have got many of these people into the troubles that they have got into,” Mr Bartman said.
“Someone has to lend them the money.”
Speaking on the same programme was the trade and industry minister, Jim Fitzpatrick, who said that the first two years were the “critical time” for IVA use.
The minister added that the government was in talks with lenders and the Insolvency Practioners Association to ensure that IVAs are sold correctly and that agreements are given to the appropriate people.