Posted February 26, 2021
The Money Advice Trust, the charity that runs National Debtline, has responded to the latest figures out today from the Insolvency Service that show a worrying increasing trend in termination rates for Individual Voluntary Arrangements (IVAs).
The charity has warned that action is needed by government and regulators to stop misleading adverts appearing online that they believe have helped drive the numbers of IVAs being taken out.
“These figures, showing an increasing trend in IVA termination rates, are a concern as they suggest that many people in financial difficulty have been directed to IVAs when they may not be the right option for their situation. In many cases, other debt solutions may be more suitable.
“The prevalence of online adverts that promote ‘solutions’ to debt involving insolvency procedures may well be a contributing factor to this. The Government needs to step in and to give the FCA the power it needs to tackle this issue head on.”
“Insolvency options should not be undertaken lightly and it is crucial that people receive free, impartial debt advice before deciding the best course of action to take.
“Findings from the recent Woolard Review highlighted the need for a more joined-up approach to the debt solution market. Increasing eligibility criteria for Debt Relief Orders is a welcome step but beyond this, we need a full review of all debt options in the wake of Covid-19.”
National Debtline has information about what to look out for when searching for debt advice online at www.nationaldebtline.org/making-sure-its-us