Three IVA providers were recently warned to either alter or stop adverts that exaggerate the benefits for individuals entering into IVAs (Individual Voluntary Agreement) by the Advertising Standards Authority.
A new regulatory organisation - the Insolvency Practitioner's Association (IPA), has recently been set up to monitor and regulate the IVA industry. The change came about following reports that debtors were led to believe that taking an IVA as an easy way out of debt.
No action will be taken against any of the firms involved, as adverts were run prior to November 2006, before the regulating body was fully established.
Money Debt & Credit managing director Jon Bartman said regulation would help people feel more comfortable about the IVA industry. The British Bankers' Association gave its seal of approval to the increased efforts of the IVA providers.