Banks to squeeze IVA providers fees
Banks are set to take a tougher line on fees charged to them by IVA providers, according to reports.
The British Bankers' Association is expected to reveal a code of conduct for IVAs at the end of the month that could encourage banks to push for lowers fees from IVA firms.
And credit provider Capital One has written to the providers telling them the company will not agree to IVAs with fees of more than £4,500 from 4 June, reported The Times.
IVA provider ClearDebt welcomed the proposal, stating its low fee structure would not be affected by the move.
'We have always operated as a low-cost IVA company and have the systems and culture in place to benefit from this sea-change in the market,' said Cleardebt CEO David Mond.
'This situation was allowed to continue until the gravytrain hit the buffers earlier this year, partly because IVA fees (which can affect the viability of an arrangement) were largely hidden from debtors - and partly because, until the IVA market exploded, the banks and credit card companies appeared to care little about what they were paying for an IVA.'
Source: accountancyage.com
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