introducing financial capability for dro clients: the toolkit september, 2015
TRANSCRIPT
Introducing Financial Capability for DRO clients: the toolkit
September, 2015
The Financial Capability DRO toolkit has been developed during the DRO pilots that have been
tested across the Citizens Advice network in 2015.
Clients that are recommended to go down the path of a DRO are in a specific set of circumstances
that are unlike the majority of other clients. This toolkit seeks to take advantage of that to apply
relevant and targeted financial capability.
During an intervention, if there is any capacity for a ten-minute financial capability element (due to
referral to a centralised DRO admin office, for example) the advisor is recommended to use this
toolkit. However, there is also no obligation to do so if an advisor wishes to use another
resource.
Why use this toolkit?
The unique strengths of financial capability with
DRO clients-
Clients often have good budgeting skills.
Client problems often stem from a single,
easily-identified life shock.
Clients are very keen for a 'fresh start'.
DRO's can only happen once in 6 years.
What does the toolkit cover?
Clients that are suitable for a DRO are often in that position because an obviously-identified reason: they frequently are aware of this before they even contact us.
This toolkit uses that fact to make them see the relevance and importance of financial capability in their specific circumstances.
Common life shocks are -
1 – Sudden unemployment2 – Multiple HP agreements3 – Council Tax Arrears4 – Payday Loans and doorstep lenders5 – Separating from a partner6 – Changes in benefits7 – Overpaid tax credits
And for those clients where it’s just impossible to say for sure what caused their problem, the following two activities are generic and equally applicable.
8 – Keeping paperwork9 – Life after a DRO
What sort of context can we use?
Summary –
It relies on an advisor's judgment.
The targeted resources can be printed out only as needed.
Targeted financial capability will hopefully aid retention and encourage clients further.
Can be used to support broader fincap programmes.
Practical use
If an advisor can identify which of the 9 toolkit resources are most applicable to a client, they can then make clear to them that we can help them avoid the same problem occurring in the future, for the same reason.
It’s not a cure-all, but it does raise awareness in the client. Critically, it relies on the unique inducement that a second DRO cannot be taken out for another 6 years.
For any further information or feedback, contact us at
Christy McAleese Team manager 03000 231 209
David Mahon Forums / Training & resources03000 231 582
Hannah Luck Forums / Communication & information03000 231 581
The Financial Skills for Life team
Also…Basam Diablos Financial capability development consultant
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