Insights: Research into Concerns Around Individual Voluntary Arrangements (IVAs)

Summary
Commissioned by the Insolvency Service, this October 2024 report investigates the prevalence of poor take-on practices in Individual Voluntary Arrangements (IVAs). The research assesses whether IVA providers follow regulatory protocols, particularly around consumer advice, affordability assessments, and fee transparency. The findings aim to improve IVA oversight and ensure better consumer outcomes under evolving insolvency regulations.
Key Take Aways

High Rate of Poor Take-on: 60% of sampled terminated IVAs showed poor practices during setup.
Prevalent Issues: Income and expenditure mismanagement occurred in 75% of poor take-on cases, and inadequate explanation of IVA terms affected 51%.
Call Data Limitation: Lack of call recordings in 43% of cases may have led to conservative estimates of poor practices.
Termination Reasons: 74% of IVA terminations were due to consumer payment arrears.
Consumer Understanding: Many consumers did not fully grasp IVA obligations, impacting susta...