Industry standards have been established to reassure consumers of the conditions they can expect when considering an Individual Voluntary Arrangement, it has been announced.
The British Bankers’ Association (BBA) states that borrowers who are in need of debt help can now look forward to higher levels of transparency and improved advice.
Advertising, information and documentation standards are also set to be bolstered for the debt management industry.
Angela Knight, chief executive of the organisation, comments: “The BBA, the Insolvency Service and the participating IVA providers are united in support for this agreement, which should provide customers with the reassurances they need in order to make the right choice for their financial futures.”
She added that through the agreement, those applying for debt help through an IVA could be sure that they were receiving the most appropriate help with money.
In September, price comparison site moneysupermarket.com described that the number of people who did not fully understand the nature of IVAs as “staggering”.