Creditor Engagement Non FCA Regulated Organisations

1. Creditor EngagementNon FCA Regulated Organisations Ray Faulder-Jones 06/06/2014

2. Contents

3. Objective The work being undertaking is the next stage of a project which the Service began with the finance sector in 2013. By completing this project we hope to reach more people at the right time in the right place to encourage and enable them to stop and think about money as part of everyday life, and access the relevant advice. Objective: To increase the number of customer referrals into debt advice

4. Objective Objective: Promote intervention before customers get into financial difficulty

5. Next Steps * This is not an exhaustive list, there may be other items of interest.

6. Milestones Create and agree objectives & Milestones Continue engagement with “Big 4” and follow up on actions from previous meetings. Engage with other finance providers to understand current level of engagement and gaps in knowledge of The Service’s offering. Engage with Non-FCA regulated organisations to understand current level of engagement and the understanding of The Service’s role and the usage of available tools and resources. Engage with Non-FCA regulated organisations to understand current level of preventative work currently being undertaken. Face to Face meeting – information gathering Submit draft paper for approval Submit final version Individual feedback to participating organisations Web Based Research Launch Event Create and agree objectives & Milestones Continue engagement with “Big 4” and follow up on actions from previous meetings. Engage with other finance providers to understand current level of engagement and gaps in knowledge of The Service’s offering. Engage with Non-FCA regulated organisations to understand current level of engagement and the understanding of The Service’s role and the usage of available tools and resources. Engage with Non-FCA regulated organisations to understand current collections processes and referral policies currently being undertaken. Face to Face meeting – information gathering Submit draft paper for approval Submit final version Individual feedback to participating organisations Web Based Research Launch Event

7. Appendix 1 Indebted Lives In November 2013 we launched the “Indebted lives: the complexities of life in debt” report (web link below).  In brief the research identified that there are approximately 8.8 million people living in the UK who are over-indebted.  This represents 18% of the UK population. Many of these will be customers your front line areas deal with on a daily basis. The report goes on to highlight that of the 8.8 million, only 17% (1.5m) are currently receiving debt advice.  It also shows that 38% of the over-indebted population are or would either plan to get debt advice, think about getting debt advice, or would consider debt advice if their situation got worse.  The Money Advice Service believes there is a significant proportion of the over-indebted population that we could engage with advice at an appropriate organisation via the best channel, based on peoples need. By working closer and engaging with organisations identified in this document ,The Money Advice Service hopes to understand how best we can work with various industries to achieve our objectives. This document will identify the project objectives, key milestones, and the scope of organisations I’m aiming to engage with. (Web Link : https://www.moneyadviceservice.org.uk/en/static/indebted-lives-the-complexities-of-life-in-debt)

8. Appendix 2 OurRole We know that the need for free, unbiased money advice is growing across the UK. Around 9 million people in the UK are over indebted with less than a fifth access the advice they need to help manage their debts. We also know that the need for money advice is not equal across the population – some groups struggle more than others. This could be due to a lack of income, financial exclusion, or the lack of knowledge and skills to manage their money well. While our service is for everyone there are some people who would benefit more then others. We aim to meeting this need by fulfilling three key roles: First, we provide people with generic information about a wide range issues and events regarding money matters. Second, we help people facing unmanageable debt get their finances back in order. Third, we are a leader and influencer beyond our own Service. We coordinate and facilitate the improvement of the financial capability landscape across the UK. OurStatutory Objectives The Money Advice Service exists to help people in the UK to understand financial matters and better manage their money . This purpose is set out in the Financial Services Act 2012 which outlines our three core objectives: 1. Improves peoples understanding and knowledge of financial matters. 2. Improve peoples ability to manage their own money. 3. Assisting members of the public with management of debt with a view to improving the availability, quality and consistency of debt advice services across the UK.

9. Appendix 3 2014/15 Strategic Themes In order to help shape our business and set our objectives, and our key performance indicators, we have developed three strategic themes: Theme 1. Deliver a highly effective service, making a real impact on peoples lives. Engaging with the UK population and enhancing the impact The Money Advice Service has, by ensuring people to access the right advice at the right time and via the right channel. Theme2. Improving access to high quality debt advice for over-indebted people. Increase the number of people taking action after receiving high quality debt advice through our funded projects, and work to improve over quality of the industry. Help increase the general populations financial capability - helping to reduce the risk of more people becoming over indebted. Theme3. Drive a wider agenda to improve people’s financial capability. Do more to help people manage their money better, across the UK, by collaborating with and supporting other organisations to boost peoples financial capability. Target Audience In 2013/14, we identified a target audience – 10.2 million people, not taking action against four out of five outcomes of managing debt well, saving regularly, saving for retirement, protecting your assets and providing for your dependants. These people need help to better manage their money and this group remains relevant in 2014/15.

10. Appendix 4 Non Financial Organisations

11. Appendix 4 Finance Organisations Government Organisations

12. Appendix 5 The chart below identifies the industries that are in and out of scope of the project at this point. It also names organisations that we would like to engage and involve in the work being completed. However, this is not a complete list and we are still working on engaging with certain industries. There may also be companies not listed who would like to be involved. This is not an exhaustive list.

13. Appendix 6 The below are examples of information supplied by various finance organisations relating to collections and recoveries process timelines, debt advice referrals, and pre-arrears activity. Finance Organisations – Service Referral methods Finance Organisations – Service Referrals Methods Finance Organisations – Typical Recoveries Flow Finance Organisations - Telephony Pathway for Debt Advice Finance Organisations – Typical Collections and Early Recoveries Timeline Finance Organisations – Pre Arrears Approaches