Tuesday 15th of September 2009
Individual voluntary arrangement (IVA) help could be required by Britons who believe they have been treated unfairly by their unsecured loan providers.
A report from the Financial Ombudsman Service (FOS) says that in the 2008/09 year ended March 31st there were 4,242 complaints to the watchdog about unsecured loans.
This represents an increase from the 2,940 complaints about this financial product received during the same period in 2007/08 and could have led many Britons to seek IVA advice about how to repay their debt.
A large proportion of unsecured loan complaints were about consumers finding it hard to repay their debt, which could be because of sky-high interest rates. An IVA can, however, freeze the interest rates on unsecured loans, which could take some of the pressure off cash-concerned consumers.
"For many consumers, the loan in question is just one of a range of pressing debts," the FOS asserts.
Indeed, the latest Credit Action report revealed that average household debt in the UK, including mortgages, stands at £58,280.
By Mark Waterman
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs could help Brits manage high interest rates
