Banks 'more willing' to question debt management services

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Banks 'more willing' to question debt management services

Thu 22nd Feb 2007

Banks are now more likely to call into question the practices of debt management services with the advent of increased individual voluntary arrangements (IVAs).

This is the opinion of financial charity the Consumer Credit Counselling Service (CCCS) whose spokesperson James Ketchell also said that in the main, banks are usually very accommodating if a customer falls into financial difficulty.

His comments come after Citizens Advice released the findings of a survey which showed an increase of 15 per cent in the number of people approaching it with debt trouble this January, compared to the corresponding period last year.

Mr Ketchell said: "[Banks] are very trusting of CCCS, however I think with the IVA industry banks are beginning to question these things a bit more than they were in the past."

He went on to explain that when an individual contacts the CCCS due to debt problems, creditors are contacted by the charity on behalf of the bank's customer.

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