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Transcript of ‘recovery’: helping creditors to work better with indebted customers who have mental health...
‘recovery’:helping creditors to work better
with indebted customers who have mental health problems
Chris Fitch, Ryan Davey and Jim Fearnley
College Research Unit, Royal College of Psychiatrists
Money Advice Trust
1. debt is common
3. creditors want to address this issue
2. a relationship exists between financial difficulty and mental health
recovery:18 month projectFriends Provident Foundation
aims:improve practice of front-line creditor staff
methodology: national surveyfield-evaluation of DMHEF
outcomes:creditor sector recommendationstailored report
endorsement: major trade bodies
www.rcpsych.ac.uk/debt
evidence
1st November 2009
tools
second edition 2009
resources
first edition 2006
second edition 2009
creditors face significant challenges
contactcustomers may become anxious when contacted - some may disengage, ignoring calls or letters
communicationstaff may have difficulty communicating with customers
or understanding how their mental health problems are relevant
consumer reports16%* treated sympathetically and sensitively
28%** asked how mental health affected debt
* 47/291 participants that disclosed (≥2 consec pay; 31% overall sample)** 79/291 participants that disclosed
contactcustomers may become anxious when contacted - some may disengage, ignoring calls or letters
communicationstaff may have difficulty communicating with customers
or understanding how their mental health problems are relevant
consumer reports85%* - mental health made financial difficulties worse
91%** - financial difficulties made mental health worse
* 788/924 participants (≥2 consec pay)** 840/924 participants (≥2 consec pay)
contactcustomers may become anxious when contacted - some may disengage, ignoring calls or letters
communicationstaff may have difficulty communicating with customers
or understanding how their mental health problems are relevant
consumer reports
“I am not on top of bills etc - and then forget to make payments and deal effectively with issues. I do a very good ostrich impression and bury my head in the sand.”
disclosure customers may have difficulties or fears in relation to talking about their mental health to staff.
This includes its impact on their ability to manage their finances – this reluctance can mask underlying problems which staff need to know about
consumer reports
27%* worried future credit
57%** don’t like disclosing
63%*** wouldn’t understand
59%**** no difference
47%***** wouldn’t believe
67% didn’t tell creditor about their mental health problem* 253/294; ** 298/924; *** 584/924**** 546/924; ***** 438/924
resourcesit can take longer to establish what needs to be done
can’t pay or won’t pay?difficult to distinguish between those with mental health problems, and those perceived as using mental health as an ‘excuse’
evidenceobtaining relevant and clear evidence about a customer’s mental health can be challenging
personal informationcollection and storage of sensitive personal information about mental health may raise important questions for organisations
consumer reports
15%* asked for consent to record details of MH
4%** clearly told how information would be used
59%*** explain situation to several people in same organ.
31% disclosed MH to creditor (291/924)* 42/282 participants (≥2 consec pay)** 11/282 participants (≥2 consec pay)*** 166/281participants (≥2 consec pay)
decision-makingusing information to make decisions about what to do in relation to an account or treatment of a debt is not always easy
consumer reports
10%* built into decisions
31% disclosed MH to creditor (291/924) * 29/281 participants (≥2 consec pay)
not first effort to address this
but is first survey and reviewof frontline practice
quantitative surveysThe programme uses a combination of rapid survey and interview research techniques.
qualitative interviewsThese provide representative and rich data, whilst minimising the amount of time staff are required to engage with the research team.
policy and frontlineInvolving research with policy and operational (including customer-facing) staff
processthe programme focuses on the process through which debts are recovered – from collections and recoveries through to litigation.
challengesidentify the challenges that staff encounter when working with customers who report mental health problems that are affecting their ability to manage or repay their debts.
commercially realisticlocating these challenges within the wider commercial realities
economic solution identify solutions that meet these challenges effectively and economically.
healthhelp companies minimise any distress or ill-health that many customers may experience at an already difficult time.
recommendations will focus on how staff can work more constructively and effectively with customers with mental health problems, rather than on issues around commercial decision-making.
industry-wide outputspractical recommendations for the credit industry in general, in consultation with trade associations.
tailored feedbackeach creditor organisation and debt collection agency participating in the programme will receive a confidential, tailored report with step-by-step recommendations on improving practice.
how you can help?
creditors: accept our invitation to participate
other stakeholders:carefully consider opportunities and
constraints for front-line creditor staff
[email protected] 7977 6649
www.rcpsych.ac.uk/recovery