The British Bankers' Association said that it has agreed to work with representatives of the debt management industry to create industry standards to prevent the mis-selling of Individual Voluntary Agreements.
The BBA said that it will set up a register of responsible insolvency practitioners subscribing to the code.
The code -- similar to the Banking Code which regulates the banking industry -- will also look at the quality of advice customers receive from IVA providers as well as the transparency of the charges and providers' fees.
They hope a code will be in place by Easter 2007.
Recently the Department of Trade and Industry said that the number of people entering into IVAs rose to 12,228 in the third quarter from 5,611 in the corresponding quarter last year.
Individual Voluntary Agreements are a less onerous form of personal bankruptcy under which a lender is required to write off a proportion of the outstanding loans.
Source: Alexander Ferguson, AFX News
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