UPDATED 28-01-2010

The group also refers to itself as the Department for Personal Insolvency Review and Assessment, and is licensed under the Consumer Credit Act.

On 18 December the OFT revoked the licence from parent company INTL Marketing, but the firm has launched an appeal. Until the case is settled the company still holds a licence.

Industry experts warn that the letters could lead to debtors having their IVAs terminated. Mark Sands, head of bankruptcy at Tenon Recovery, said: Once arrears go beyond a certain level then it's likely the IVAs will be terminated and the debtor will have to start all over again.

It is not known if the IRB is connected to the IVA Council, which gained notoriety in 2008 for contacting people in IVAs and claiming they had been mis-sold the arrangements.

Insolvency practitioner David Mond secured an injunction against the IVA Council and a Ј25,000 fine.

Mond said: It's diabolical that these parasites have the opportunity to approach people in financial difficulties.

A spokeswoman for the Insolvency Service said: If people in IVAs receive any unsolicited communication suggesting that they stop making payments, they should discuss this in the first instance with the supervisor of their IVA.

Despite repeated attempts to contact the IVA Review Board, at the time of going to press it had not return Credit Today's calls.

Some such mailings sent out to consumers misleadingly suggest to recipients they may have been mis-sold the IVA and/or that bankruptcy may be more suitable for their circumstances when this may not be the case. These mailings are being targeted at vulnerable consumers in IVAs by companies who appear to have accessed their personal contact details from the public register of people in IVAs which the Insolvency Service is required by law to maintain.

The OFT considers such claims to be in breach of its debt management guidance not only if they are misleading but also if they fail to explain the consequences of terminating an IVA agreement and going bankrupt which include:
Much of the initial monies paid to a company on setting up an IVA going towards meeting the insolvency practitioner's fees and not paying off the debt itself. Therefore, if the IVA fails early on, creditors will not have received any payments, the consumer's debts will not have decreased and their financial position is likely to have worsened.
The option of bankruptcy having far reaching consequences including consumers losing control of their assets, potentially having their home sold and facing restrictions in carrying on businesses and obtaining credit.
The OFT has issued warnings to 12 businesses and has given them four weeks to respond. They have been told to amend any misleading claims made in their IVA advertising and promotional material and to be more transparent about the possible implications for consumers if they do terminate an IVA agreement. The OFT will consider taking action against any business that fails to address our concerns. Such action could include taking steps to revoke consumer credit licences held by the business.

Ray Watson, OFT Director for Consumer Credit, said:

'Tackling companies who are engaging in unfair business practices by targeting vulnerable consumers with misleading advice and information, particularly if it leads to consumers becoming more over-indebted, is a key priority for the OFT. We expect any advice and/or information given to debtors to be in their best interests and it should include a full explanation of the implications of offers or advice.'