The head of the British Bankers’ Association has said she is “delighted” that the practices of operators in the individual voluntary arrangement industry are to come under increased scrutiny.
Angela Knight made the comment in the wake of a warning from the Advertising Standards Agency (ASA) to one company about the content of its advertisements.
Several companies have recently been singled out for criticism by the ASA, which has said that claims made in advertisements regarding the amount of money that can be written off are often “misleading”.
Ms Knight said her organisation would encourage the IVA industry towards effective self-regulation.
This, she added, would help to “maintain the integrity of IVAs as a potential debt management tool”.
Major banks have increasingly begun to dispute the terms of IVAs they are presented with as the mechanism is increasingly used by debtors to write off portions of their debt.
In related news, the BBA recently said it was “looking forward to engaging” with the Office of Fair Trading after that body announced an investigation into banking charges.
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