It is expected to inform and influence the approach of insolvency practitioners and creditors to "straightforward consumer debtor proposals" which should provide a basis for quicker, more streamlined preparation and submission of IVAs
to creditors who, in turn, should agree and accept them "as submitted".
A BBA spokesman said: "Entering into an IVA
is legally binding and people need to know what they are signing up to beforehand."
The new set of standards will come into effect formally in the next few months and will see IVA
firms sign up to a self-regulatory protocol governing advertising and the sales process.
In the final quarter of 2006, says Grant Thornton, there were 12,740 IVAs
- against 17,063 personal bankruptcies.
and other intelligent robots will play an increasingly important role in the economy as they deliver an effective and customer-friendly self-service experience.
reduce call wait times and free up CSRs to respond to more complex queries, allowing companies to make the most of their website and the information on it.
Under an IVA
creditors agree to freeze interest on debts in exchange for a set amount being repaid each month, usually for a period of around five years.
R3 Midlands chairman Bob Bailey said: "Several factors could have led to a dampening of the IVA
demand, including crackdowns on advertising by the Office of Fair Trading and the Advertising Standards Authority, as well as tougher scrutiny from creditors.
But some experts believe IVAs
are being 'oversold' to people who should be trying to tackle debt in other ways.
To improve accuracy, IVAs
can be trained using multiple sources of input, such as speech and lip movement, via mobile devices' cameras.
Intelligent virtual assistants (IVAs
) have been deployed for enterprises since 2006, far ahead of consumer expectations.
The figures, released by the Insolvency Service, are made up of bankruptcies, which are often seen as a last resort; debt relief orders (DRO), which are aimed at people with lower debts but no realistic prospect of paying them off; and individual voluntary arrangements (IVAs
), where money is shared out between creditors.
Recent advancements in artificial intelligence, coupled with consumer partiality for digital channels, are driving interest in and adoption of intelligent virtual assistants (IVAs
) and a related technology, robotic process automation (RPA), or "bots." Organizations are starting to engineer service experiences that combine the best of self-service automation with human-assisted elements, a win-win for enterprises looking to reduce operating costs.
are a formal alternative for UK consumers to primarily avoid bankruptcy, PRA explained in its statement.