Lenders are becoming tougher in their attitudes towards Individual Voluntary Agreements (IVAs), an industry operator has revealed.
IVAs are popular with consumers who are having difficulty with repayments on
Under the terms of an IVA, the debtor agrees to repay a proportion of the debt over a certain period, usually with the remainder being written off.
But some banks and lenders feel that the system has been abused in recent years and are becoming less co-operative, Debt Free Direct said today.
A spokesman for the company, which provides free and independent advice to debtors, said lenders “are not as helpful in agreeing IVA deals and are becoming much, much tougher and are denying access to an IVA”.
Earlier this week, a report by consultancy firm Grant Thornton found that UK personal debt – in the form of
© Adfero Ltd