The Guardian newspaper web site ‘Guardian Unlimited’ is reporting that The B.B.A. (British Banking Association) and debt management companies that offer IVAs, (Individual Voluntary Arrangements) are to draw up plans for a voluntary code of practice which will set out how IVAs are sold and marketed.
The article reads:
“The decision followed a ‘debt summit’ chaired by the British Bankers’ Association last Wednesday and attended by 30 IVA providers and industry body representatives. The new code will follow the template of the Banking Code, which is voluntary and sets minimum standards for the way banking service providers should treat customers.”
Then continued:
“The new code will set standards for advertising of IVAs, quality of advice and transparency of charges. The number of people entering into IVA’s in the third quarter rocketed to 12,228, up 118 per cent from the same quarter last year, prompting concern about misselling.
One of the stipulations in the new code could work like the ‘66 per cent rule’, said Eric Leenders, executive director at the BBA. This is an Office of Fair Trading regulation that stipulates the typical interest rate advertised by personal loan providers must be offered to at least 66 per cent of all customers who apply.
The BBA has repeatedly accused the IVA industry of putting out misleading adverts, which falsely promise a ‘90 per cent debt write off’.”
to read the full article, click here.
My IVA Adviser welcomes the news that debt management companies will have to be more clear and accurate with their advertising campaigns.
Peter Wrenshall Co Founder of My IVA Adviser said:
” For some time now, some large debt management companies and IVA factories have been exaggerating some of the benefits that an IVA can bring to people who have serious debt problems.”
He continued, ” Our slogan ‘The Truth About IVAs‘ is based solely on trying to undo the damage and confusion caused by some companies using deliberately misleading advertisements. The sooner they are stopped, the better for everyone.”
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