#MALG14 Workshop B - Debt Advice - Slideset
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The document discusses the effectiveness of debt advice in practice, addressing various perspectives from customers, creditors, and providers. It presents evidence that a significant portion of those engaged with debt advice experience reduced debts and improved emotional well-being, while also considering challenges such as funding and engagement. The discussion raises critical questions about whether debt advice should be a comprehensive solution and the responsibilities surrounding its effectiveness.
#MALG14 Workshop B - Debt Advice - Slideset
- 1. 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
- 2. 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?
- 3. 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
- 4. 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
- 5. Does debt advice work?
- 6. Unpicking the question S2cking Plaster A temporary or inadequate solu2on to a serious problem Panacea Something that will solve all problems
- 7. 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
- 8. Tip of the iceberg? Systems work in NoUngham, Portsmouth and Cardiff. Presen2ng demand and underlying causes A Whole Person Approach
- 9. Debt or glory? Individual Vol. Arrangement 5 years DRO/Bankruptcy 1 year Debt Management plans 5-‐6+ years Informal arrangements ?????
- 10. 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
- 11. Does debt advice work?
- 12. 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?