How Field Agents can play a part in getting advice to struggling customers?

1. How Field Agents can play a part in getting advice to struggling customers? CML Arrears and Possessions Conference Thursday 9th February 2012 Midland Hotel (Manchester) Ray Hugill Chairman The Association of Arrears Mediators

2. Contents • The Association of Arrears Mediators • The role of the Field Agent • Are the visits successful? • Statistics for 2011 • Mis-Conceptions of Field Agents • Holistic approach to Debt Management • Payplan

3. The Association of Arrears Mediators • A Trade Body for the arrears mediation sector (Field Agents/Counsellors) • Established in 2009 • Members: • > DMS • > Excel • > NCI • > PDP • > PSP/Fieldcall • Create and maintain high quality professional standards and good practice • Provide services consistent with FSA guidelines and compliance with other regulators

4. The role of the Field Agent • Extension of a lender’s service proposition in the end-to-end arrears process • Often a conduit between the lender and the customer • Becomes the lender’s eyes and ears in the field • Provides a comprehensive breakdown of the customer’s financial situation • Submits a report to allow the lender to determine the best way forward • Intention is to try and obtain a payment proposal that clears the outstanding arrears • Part of the Pre-Action Protocol allowing customers to remain in their homes

5. Are the visits successful • Appointment numbers would indicate so • Between 2007 and 2011: • > 738862 – pre-litigation visits completed • > 134661 – pre-eviction visits completed • > 873523 – total visits completed

6. Statistics for 2011 • 123131 pre-litigation visits were completed in 2011 • > 32.59% - full fact find with an arrangement proposal • > 06.53% - full fact find completed with no arrangement proposal • > 10.94% - no contact • > 14.83% - visit cancelled by the lender • > 12.54% - assistance refused by the customer • > 09.58% - property empty • > 12.99% - property tenanted • Net controllable total – 77074 (62.60)% • Pre-litigation visits down 4.33% on 2010 • Pre-eviction visits down 21.14% on 2010

7. Mis-Conceptions of Field Agents • Field Agents are not debt collectors • Field Agents are not mortgage brokers • Field agents do not give advice • Field agents do not enter properties unless invited in

8. Holistic approach to Debt Management • Fees free v paying customers debate • Industry remains fragmented • Field Agents will signpost within the FSA guidance and MCOB guidelines but there are issues: • > Ability to cope with volumes • > Distrust by lenders of some agencies • > Choosing the best agency • > Bankruptcies and IVA’s perceived as a “soft option” • > Unrealistic expectations required of lenders to accept short payments or write offs. • > Secured v unsecured creditors • > Lack of knowledge of some decision makers • What is a debt management plan and how does it benefit lenders?

9. Payplan • Initial presentation by Payplan to the Association’s Board in November • Potential referral of “suitable” customers • Field Agency firms must operate within the mandates of lenders • Opportunity today to look at the option further