NEWS...
Handling new debtors with care
Creditors have been warned to treat a new type of debtor with care – those who have never been in financial trouble before but who have been hit hard during the recession.
Anthony Sharp, chair of MALG, speaking at the 21st Money Advice Liaison Group conference, explained how these debtors need understanding and help in these tougher times.
He said: "All the sides need to understand and care for these new debtors – as well as existing ones."
Michael Coogen, director general of the Council of Mortgage Lenders, echoed these sentiments, but added that even though the circumstances might be the borrower's fault, they aren't the lender's fault either – and that only by working together can better conditions for debtors be maintained.
He said: "Reference to our downgrading of our protection for repossessions is an indication that the situation has improved. However we cannot be complacent, there is much work to be done. The journey of managing debt problems has just started."
Meanwhile, speaking at the event, 'Debt: New Ball Game – New Tactics', Anthony launched the second edition of MALG's Good Practice Mental Health Awareness Guidelines. Outlining their importance he added: "Our aim is to advise on problems caused by mental health issues. The guidelines themselves have not changed, just the periphery around them.
"MALG does not make policies and there is no code of practice. We are advisory only, but we are pleased that they are making a difference and have found their way into various codes of practice, recognised by government and the advice sector, as well as being endorsed by Stephen Fry and Alastair Campbell."
Jason Cole, Tessera's Head of Business Development, explained the company's view on this: "Tessera treats each case on its on merits.
"Our collectors work with the debtors to understand their individual situations and ensure that the repayment solution which is agreed is both sustainable and realistic. Whenever a need for in depth financial advice is recognised, we always suggest that the debtor contacts an organisation such as the CAB or CCCS to discuss their circumstances in detail."
Original article courtesy of CCR.
