Your rights during an IVA
As someone in an IVA, you have clearly defined legal and regulatory rights. You are entitled to:
- Be treated fairly and with respect by your Insolvency Practitioner
- Receive clear, accurate, and timely information about your arrangement
- Know how much you have paid, how much has been distributed to creditors, and how much has been taken in fees
- Be consulted before any variation to your IVA is proposed to creditors
- Make a formal complaint if you are dissatisfied with the service you receive
- Access free, independent debt advice at any time during your IVA
- Apply to the court under section 263 of the Insolvency Act 1986 if you believe your IP has acted unfairly or in breach of their duties
How the FCA is involved
The Financial Conduct Authority (FCA) regulates debt counselling, debt adjusting, and debt management services. Any firm providing debt advice to consumers must be authorised by the FCA or be an appointed representative of an FCA-authorised firm.
The FCA's conduct rules require regulated firms to:
- Act in the customer's best interests
- Communicate clearly, fairly, and without misleading
- Not recommend unsuitable products or solutions
- Be transparent about all fees and charges
Insolvency Practitioners are regulated by their recognised professional body — such as the Insolvency Practitioners Association (IPA) or the Institute of Chartered Accountants in England and Wales (ICAEW) — rather than directly by the FCA. However, if your IP also provides debt advice or debt management services, those specific activities must be FCA-authorised. Your IP should be able to tell you which bodies regulate them.
Making a complaint about your Insolvency Practitioner
If you are dissatisfied with the service provided by your IP, follow these steps:
- Raise it directly with your IP. Contact your IP and explain the issue clearly. All licensed IPs are required to have a formal complaints procedure and must respond within a reasonable timeframe, typically eight weeks.
- Put it in writing. If verbal communication does not resolve the matter, submit a written formal complaint. Keep a copy of everything you send and receive.
- Escalate to the regulatory body. If the IP's response is unsatisfactory, complain to their recognised professional body. Your IP must tell you which body that is. Common bodies include the IPA, ICAEW, ACCA, and the Insolvency Service.
If you are concerned about urgent matters — such as your IP taking action that you believe is unlawful or unfair — you can contact the Insolvency Service directly.
The Financial Ombudsman Service
If your complaint relates to debt advice or debt management services that are regulated by the FCA, you may be able to refer the matter to the Financial Ombudsman Service (FOS). The FOS is an independent body that resolves disputes between consumers and financial firms at no cost to the consumer.
The FOS can only consider complaints that the firm has already had an opportunity to address. You should normally have received a final response from the firm (or eight weeks should have elapsed) before referring a complaint to the FOS.
For complaints specifically about the conduct of your IP as Supervisor of your IVA — rather than about debt advice — the relevant route is the IP's regulatory body rather than the FOS.
Free advice services
You are entitled to seek free, independent advice at any time during your IVA. The following organisations provide regulated debt advice at no charge:
- StepChange Debt Charity — telephone and online advice, including support for people already in an IVA
- Citizens Advice — in-person, telephone, and online debt advice
- MoneyHelper (Money and Pensions Service) — government-backed advice and signposting
- National Debtline — specialist telephone and online debt advice
You should never be charged for debt advice. If any company asks you to pay for advice about your IVA, consider using one of the free services listed above. Regulated debt advice is always free of charge to the consumer.
Important information
This page provides general factual information only. It is not financial advice and is not regulated by the Financial Conduct Authority (FCA) or any other regulatory body.
IVAs are complex legal agreements. Your circumstances may differ from general descriptions. Always refer to your own IVA proposal and seek guidance from your licensed Insolvency Practitioner. Free advice: StepChange, Citizens Advice, National Debtline. — Sitemap