Rumours are flying about which UK bank will feast on the misfortune of Northern Rock (LON:NRK) and digest all or significant parts of the bank. The most likely cast of characters is HSBC (LON:HSBA.L), Halifax / Bank of Scotland (HBOS) (LON:HBOS) and Lloyds TSB, (LON: LYG). On the outside there might be interest by Dutch ING as well.

For Insolvency Practitioners and the current battle over IVA changes, the prospect of watching Northern Rock fall into HSBC or HBOS has significant ramifications since these two banks are currently operating under the TIX Compliant IVA standards that unfairly restrict consumer access to fair, reasonable and sustainable debt solutions.

Lloyds would be the best case scenario since they are a reasonable bank for Insolvency Practitioners to deal with regarding Individual Voluntary Arrangements.


Just off the phone with Adrian Nichols at the Debt Mediation Services. Adrian is still fielding Financial Ombudsman complaints regarding bad bank behaviour and IVAs. Previous complaints submitted are moving ahead and banks like Northern Rock are having a difficult time proving that the knee jerk IVA rejections were either fair or reasonable. That’s good news for moving these cases ahead to the FOS where Northern Rock will get slapped with a £400 case fee per accepted complaint. Of course HSBC and HBOS are well in the running as well for prime complaint candidates as well.

If you are an IP that wants to move a case forward to a FOS complaint to try and seek third-party arbitration and penalties against the bank for unfairly rejecting a fair and reasonable IVA, visit the complaint submission page at the Debt Mediation Services.