View more on these topics

IVA protocols due in 2008


The British Bankers’ Association is in the final stages of establishing a set of protocols to help improve the image of the individual voluntary arr-angement sector.

At a recent debt forum with the Insolvency Service, the BBA called on IVA providers to help customers understand IVAs better and for improved literature to be developed over the next six months.

It said this should include clearer information about the consequences of entering into IVAs and whether IVAs are their most appropriate way for people to get out of debt.

The forum focussed on various aspects of IVAs including advertising and due diligence fees, as well as ex-ploring the possibility of developing a set of protocols covering all aspects of the IVA process.

Work on a standardised information pack will begin shortly and this is expected to be published in spring 2008.

The number of IVAs has risen in the past few years, reaching 44,000 in 2006, up from 5,000 in 2002. Northern Rock and HSBC both recently clamped down on IVA acceptances and credit card company Capital One has said it will reject IVAs where total fees exceed £4,500.

Capital One says the fees charged by debt management companies to people who take out IVAs are “in most cases excessive”.

Desmond Flynn, inspector general of the Insolvency Service, says: “The development of these standard protocols will produce clear benefits when it comes to the issues of transparency, fairness and the overall cost of the IVA process.

“We hope that this will enable IVA proposals to be dealt with on their merits, which would be in the best interests of debtors and creditors.”

Eric Leenders, executive director of the BBA, says: “All that is left is the fine detail to be thrashed out. We hope the full set of IVA standards will be fin-alised by the end of this year.”

Recommended

TMW expands the 100% LTV range

The Mortgage Works is launching three mortgages in the 100% mortgage portfolio.The new deals have an LTV of 99%, with an arrangement fee of 1% which can be added to the loan, taking the loan to 100% LTV. With rates starting from 5.99%, the products are designed for customers who have a small deposit and […]

GEMHL doubles sales team

GE Money Home Lending has doubled its sales and underwriting teams, as well as launching buy-to-let products to its portfolio. The news comes as GE Money adds another two partners, Mortgage 2000 and Personal Touch Financial Services, to its distribution network. GEMHL is introducing a range of buy-to-let products, which will also be available to […]

Edeus agrees funding deal with Deutsche

Edeus has struck a funding deal with Deutsche Bank.Under the terms of the agreement, edeus will have access to 500m via a Deutsche Bank warehouse funding line. This is in addition to its current facilities and allows edeus to diversify its funding base and increase its liquidity.Ian Lonergan, chief finance officer at edeus, says: This […]

Beacon appoints sales director

Beacon Homeloans has appointed Clive Willson as sales director.The sub-prime lender has also appointed Beverley Morris as head of sales.Andrew Townsend, group managing director at Beacon, says: I am delighted to announce Clive and Bevs appointments to these roles within Beacon Homeloans. They have both contributed enormously to the development of Beacon Homeloans, and am […]

Retirement - thumbnail

Pension freedoms: stop the scams

At the beginning of 2015, we highlighted that the new pension freedoms that come fully online on 6 April also represent a very attractive opportunity for the criminal fraternity to scam savers out of some, or all, of their accumulated retirement savings.

Newsletter

News and expert analysis straight to your inbox

Sign up