The UK’s leading banking authority is said to be “over the moon” at the prospect of newly introduced rules, devised to govern the promotion of IVA’s.

The trade body has been lobbying for some time in an effort to encourage IVA providers to self govern the way in which they promote their services. The move would ensure that consumers are not “mislead” about potential benefits of an IVA and would help to create a more sensible attitude towards the use of such tools.

Although the number of people entering into such agreements is increasing, many analysts believe consumers are not fully aware as the how the procedure works. Reportedly, a large percentage of consumers view IVA’s as a “magical” solution to end their debt worries.

It is suggested that a handful of providers have been misleading customers through “careless” advertising campaigns and have been penalised as a result. The IVA can be the only option available to some people in serious debt, however it is important that providers can accurately identify such people, and are proactive in their ability to use “best practice” guidelines at the outset.