Creditors and advisers do now talk together - job done then?

Peter Munro, Head of Business Development - Creditors, PayPlan David Easterby, Head of Consumer Servicing, Idem Servicing

Presenters:

Darryl Matthews, Group Head of External Relations, Harrington Brooks

Facilitator:

Phill Holdsworth, Proprietor of Phill Holdsworth Consulting and representing MALG’s North East Discussion Forum

Scribe:

Workshop Overview

•  Welcome and housekeeping - Darryl Matthews •  Adviser perspective - Peter Munro •  Creditor perspective - David Easterby •  Open discussion - All •  Job Done Then? - Vote

Adviser Perspective

•  Talking IS progress - reflections on ‘bridging the divide’ •  Working with Creditors - the Payplan experience

•  Job Done? - thoughts for the open discussion

Talking IS progress

•  ‘Bridging the divide’ no longer a distracting issue •  MALG / Roundtables / Working Parties breaking down barriers

•  Regulation has encouraged positive dialogue

•  Doing the right thing for consumer a shared objective

Working with Creditors (1)

•  900K creditor accounts under management •  26K creditor letters handled per month •  5K creditor phone calls handled per month •  92K creditor online interactions per month •  35 creditor meetings per month •  8 industry events per month •  Disbursing £18m a month to creditors

Working with Creditors (2)

•  Dedicated debt advice managers now more common •  Specialist Teams to deal with vulnerable customers •  Exchange visits to improve relations •  Mutual auditing to improve trust •  Sharing of consultation thoughts / responses •  Pro-active and targeted referrals replacing generic signposting •  Data exchange proving the benefits of debt advice •  More diverse creditor types now engaging

Job Done?

•  Engagement and attitude varies by creditor type •  Inconsistent policies and procedures cause confusion •  Communications around debt sale could improve •  Communications around DCA use could improve •  Service levels vary considerably

Creditor perspective

•  Historical creditor perspective •  The need for change •  Our journey •  What’s next?

Historical creditor perspective •  Advice sector seen as a barrier between creditor and

customer –  Lack of trust –  No real dialogue

•  Limited working relationships •  Lack of understanding on both sides – were customers

always put first? •  All advisors “tarred with the same brush” – and perhaps

all creditors!

The need for change •  Recognition of the importance of the advice sector •  More customers were seeking debt advice •  Advice providers operating in the UK increased dramatically •  Treating Customer Fairly •  Changes to the regulatory environment

Our journey •  Invested in understanding the industry •  Embarked on an engagement exercise •  Developed working relationships based on understanding

and trust •  Created a specialist department •  Built a bespoke system •  Moved from reactive to proactive approach

What’s next? •  Continue to communicate •  Share best practice •  Identify areas to learn from each other •  Encourage uniformity / standard practices •  Support each other through the regulatory changes

Open Discussion •  Do both sides talk but neither truly listen? •  Are there enough opportunities for dialogue? •  Is opinion still too polarised to ever reach compromise

positions? •  Are both talking but using a different language? •  Why are messages so inconsistent from both sides on the

same issues? •  Do both have the consumer at the heart of this dialogue? •  What have we learned from converting conflict into dialogue? •  How can we turn talk into positive actions for the future?

Vote