Two of the largest banks in the UK are pushing for a meeting with the debt companies that provide the latest trend in debt management, IVAs or Individual Voluntary Arrangements.
The banking industry is known to not only be alarmed at the increasing number of people filing for IVAs, but also that debt companies are misleading individuals into thinking that all of their financial problems can be easily solved.
The British Bankers Association (BBA) is thought to have written letters to the bosses of two of the debt companies in question, asking for a meeting to sit down and discuss the situation.
Chief Executive of the BBA Ian Mullen added “we are concerned that young, inexperienced and vulnerable people are being targeted by adverts” and the long-term position of debtors who enter into IVA agreement "could be disastrous" as it could affect their ability to get a mortgage or a loan.