Government Gives Lenders A Dressing Down

Attempts by certain banks to deflect attention away from their own irresponsible lending policies and on to debt management companies have failed.

The Government has commented that the rise in consumers taking out Individual Voluntary Arrangements (IVA's) in recent years is simply 'cause and effect' and is directly linked to the willingness of banks to lend without checking the ability of the customer to repay.

Questions are also being asked about banks that have set an arbitary minimum divided level for consumers proposing to repay some of what they owe via an IVA as oppose to going bankrupt. These moves by banks are seen to be a direct contradiction to the banking code.

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