A number of leading debt specialist firms have experienced a sharp decline in share value over the last few months, in advent of new rules designed to limit fee’s associated to IVA’s (Individual Voluntary Arrangements).

The number of people entering into IVA’s has grown tremendously, as individuals seek a viable way to escape the harsh realities of serious debt. Numerous consumer groups and lending institutions have scrutinized debt specialist firms, suggesting that fee’s associated to the set up of IVA’s are to high. The new set of rules, which are expected to come into effect in the not to distant future, will reduce the overall set up charge by almost a third.

As it currently stand’s, IVA specialists are likely to charge anywhere between £6-8000 per individual case. Industry analysts believe that once the new legislation takes affect, debt firms are likely to see fee’s restricted to around £4,000 per case.

Lending institutions are also lobbying with a number of debt firms in an attempt to formulate a code of practice, as the industry looks to self regulate its activities. In wake of the new fee structure, four of the UK’s leading debt companies have seen share value’s decrease, with one in particular experiencing a drop of almost 50%.