1 foundation for credit counselling malcolm hurlston cccs – the uk’s leading debt charity
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Foundation for Credit CounsellingFoundation for Credit Counselling
MalcolmMalcolm HurlstonHurlston
CCCSCCCS – the UK’s leading debt charity – the UK’s leading debt charity
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Purpose of CCCS
Consumer credit counselling gives
free counselling and money advice
to borrowers in financial distress –
all at no cost to the tax payer
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Origins of the Foundation
I visited CCCS centres in the US in 1991
Chose CCCS of the Gulf Coast as a model
Raised £600,000 for a UK pilot
Brought the repayment ethic to the UK
Free service to consumers
Fair dealing between clients and lenders
Pilot started in 1993
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Foundation for Credit Counselling is a charity
Operates as the Consumer Credit Counselling Service (CCCS)
CCCS offers free and impartial debt advice
Who we are
0800 free phone helpline
Available 8am to 8pm
General or specialist debt advice
Appointments made with counsellors
By telephone, in person or via the net
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How we work
Consumers contact us on an 0800 free phone helpline
Helpline Or visit the CCCS website
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The CCCS website also provides information
CCCS DebtRemedy
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How we work – summary of process
CCCS reviews all plans once a year
Manage IVA and provide
aftercare(3%)
Self-administered
(7%)
Manage DMP and provide
aftercare(12%)
Other solution(14%)
Credit Counselling
Self-help pack
(13%)
Counselling appointment
arranged(36%)
General advice(51%)
Speaks to helpline(100%)
Client rings free phone
number
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How we work - Debt Management Plans
Our advice is provided by fully trained and
accredited counsellors
who are able to set up realistic repayment plans
Assess income and expenses
Formulate debt management plan (DMP)
Agree DMP with creditors
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Debt is systematically repaid to creditors
How we work - Debt Management Plans
Structured payment plans
Fair and equitable distribution of money
Strict retention guidelines in the event of default
Dedicated teams support clients and creditors CCCS is funded by fair share contributions from the
credit industry Almost half of our clients are recommended to us by
their lenders
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How we work
Debt Management Plan
CCCSClient Creditors
Monthly payments from clients
Monitored for sustainability
followed up if payments missed DMP discontinued if no contact or
no valid reason for missing
Repayments to lenders
Single BACS payment preferred method
Fair share contribution to CCCS
Initially 15 percent (now 11.75 percent)
Dedicated helplines support clients and creditors
Monthly statement
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What we achieve
Free phone for easy access
8am – 8pm availability
Experienced accredited counsellors
Free, confidential and impartial advice
Structured repayment plans
Web access to information on progress
Dedicated guidance and support teams
Benefits to our clients
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What we achieve
£140m returned through us in 2006
Saving staff and administration
Web-based information on plans
Improved reputation
Rehabilitated borrowers
Improved debt recovery
Proven low attrition rates
Benefits to lenders
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What we achieve
10% of all UK problem debt managed
Strengthening the repayment ethic
Supporting the liberal credit economy
Helping almost a million borrowers
Taking the weight off the state
Benefits to society
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What we achieve
Helpline calls 294,000
Counselling appointments 89,000
New debt management plans 35,000
Active debt management plans 74,000
Disbursement to creditors £140,250,000
Annual volumes and service - 2006
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What we achieve
Annual volumes and service
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50,000
100,000
150,000
200,000
250,000
300,000
350,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
People contacting our helpline
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What we achieve
Annual volumes and service
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
People receiving counselling
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What we achieve
Annual volumes and service
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
New Active
Debt Management Plans
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What we achieve
Annual volumes and service
0
20
40
60
80
100
120
140
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Repayments to lenders (£ million)
(£millions)
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What we achieve
Customer service calls – clients 320,000
Customer service calls - creditors
117,000
Counselling support calls 152,000
Annual volumes and service - 2006
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What we achieve
Annual volumes and service
0
100
200
300
400
500
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Charity Employees
70% of employees are working directly with clients
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Our future
Virtual counselling
Insolvency and bankruptcy
IT systems and process re-engineering
Website development and facilities
Management information and research
Advice to other jurisdictions
Our vision is to become acknowledged as the world’s
leading provider of free debt advice
FCC developments
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Questions