While shares in Debt Free Direct fell by 35 per cent, shares in Accuma fell by around 20 per cent and shares in Debts.co.uk by around nine per cent.

The results surprised market analysts who only a few months ago were depicting a booming market.

But recent concerns over the suitability of debt management ‘solutions’ for customers who may be unable to make future repayments have driven high street banks to resist signing customers off to IVAs.

A customer needs the creditors responsible for 75 per cent of their debt to agree to their IVA.

Debt Free Direct has accused the banks now refusing to sign IVAs of “creditor posturing”.

Earlier this month, the Office of Fair Trading shone the spotlight on IVA companies, writing to 17 firms to alert them to the risks of making false advertising claims such as promising to write off as much as 90 per cent of individual consumer debt.

For more information about debt advice, click here.

© Adfero Ltd