Debt  Advice  -­‐  panacea  or  s2cking  plaster  -­‐  does  it  work  in  prac2ce?  

Presenters: Lee Usher, Debt Advice Manager, UKAR

Chilli Reid, Head of Development & Policy, Advice UK Facilitator: Nick Bussey, Director of Business Development, Clearstart Scribe: Keith Osbourne, Counsellor, Health & Wellbeing,

Metropolitan Police and representing MALG’s South East Discussion Forum

Different viewpoints

Customer

Creditor

Debt Advice Provider

•  Debt Free? •  In control of finances? Light at the end of the tunnel?

•  Better sense of emotional wellbeing?

•  Meet regulatory requirements? •  Improve customer engagement levels?

•  Improve repayment performance? •  Good PR?

•  Income stream? •  Providing essential public service?

•  Both of the above?

What is the evidence? UKAR  engaged  5%  of  1+  MIA  book  with  advice  2014  

Over  90%  DMPs  

maintain  /  No  impact  secured  

performance  

98%  UKAR  customers  

sa2sfied  with  advice  

provided  

MAS  report  only  17%  

over-­‐indebted  engage  with  debt  advice  

MAS  report  76%  reduce  

debts  and  71%  feel  less  stressed    

MAS  report  debt  advice  works  for  9  

out  of  10  over-­‐indebted  

What are the considerations?

Assessing  circumstance

s  

Reduc2on  in  debt  levels  

Customer  sa2sfac2on  

Delivery  channels  

Customer  engagement  

Consistency  in  delivering  outcomes  

Funding  models  

Creditor  and  advisor  

engagement  levels  

Does debt advice work?

Unpicking the question

S2cking  Plaster  A  temporary  or  inadequate  solu2on  to  a      serious  problem    Panacea  Something  that  will  solve  all  problems      

The common factor

Debtors

Money Advice Trust

Insolvency Practitioners

Money Advice Service Solicitors

Debt Recovery Companies

Fee-Chargers

Free Advice Sector

Bailiffs / Enforcement

Officers

Priority Debt Recovery /

Enforcement

Financial Conduct Authority

Payplan

HMCTS

Creditors

Tip of the iceberg?

Systems  work  in  NoUngham,  Portsmouth  and  Cardiff.    Presen2ng  demand  and  underlying  causes    A  Whole  Person  Approach      

Debt or glory?

Individual  Vol.  Arrangement  5  years    DRO/Bankruptcy      1  year    Debt  Management  plans    5-­‐6+  years    Informal  arrangements    ?????  

The debt industrial complex

Keeping  up  supply-­‐new  and  recurring?    Breaking  the  cycle-­‐In  whose  interest?    A  non  neutral  world-­‐debt  advice  is  not  alone          

Does debt advice work?

       

Questions

1.   Should  debt  advice  aim  to  be  a  panacea?  

2.   If  so,  who  is  responsible  for  achieving  it?  

3.   If  the  answer  to  1  is  no,  what  is  debt  advice  for?