UK: Debt firms' shares plunge over IVA doubts

Shares in British debt management companies plunged today as investors bailed out amid signs creditors were becoming increasingly reluctant to back IVAs.

Two of the sector’s largest players Debt Free Direct and Accuma issued profits warnings on Friday, sending shares plummeting across the sector as they admitted some lenders were refusing to approve IVAs – individual voluntary arrangements - which allow over-burdened consumers to clear agreed levels of debt without going into bankruptcy.