An increase in the number of individual voluntary arrangements (IVAs) means Banks will continue to heavily monitor the conduct of debt management companies - according to one financial expert.
The Consumer Credit Counselling Service's (CCCS) James Ketchell also added that in the main, banks are usually very accommodating if a customer is struggling with debt.
It's expected that in 2007 IVAs will overtake Bankruptcy as the number one choice for consumers filing for personal insolvency - meaning banks are forced to write-off even more money in bad debts.