Introducing the toolkit for clients at high risk of damaging lending August, 2019 This presentation can be used as a foundation for your own; please feel free to add more slides and amend as you wish.

Why use this toolkit? This toolkit was developed specifically to support advisers who are working with clients who they feel are at a high risk of damaging, high-cost or predatory lending. As part of the integrated model of money advice, advisers are encouraged to provide some element of financial capability in every single intervention with a client. The resources in this toolkit are designed to support those interventions that reveal clients are at high-risk of taking out credit that is likely to lead to unsustainable debt.

Helping clients at high risk of damaging lending When to use this toolkit? Clients that require help, but also provide evidence that they have been – or may be at risk of – predatory and unsustainable lending will need more urgent, pointed and specific guidance than is offered in our generalist financial capability resources. This can include clients who are not experiencing problem debt, but who do have very poor credit ratings. The topics in this toolkit are designed to facilitate a discussion with clients to make them aware of the possible dangers of less-mainstream forms of credit. Always remember: There are times when advisers help clients in urgent need. These clients may be distressed, emotional or require pastoral support. Advisers are not expected to try to offer financial capability in these interventions, as it is simply unlikely to be a suitable time to try to build a clients resilience.

The approach in this toolkit The toolkit provides support for a client who is at high risk of taking out damaging credit. However, it is not directly arranged in a ‘session pack’ like other similar credit sessions. Similarly, the separate factsheets included within are available as individual downloads for easy access when working with a client. The factsheets cover critical topics around damaging lending, including how to spot criminal lenders and understanding complex terms and conditions. Advisers should pick and choose the one(s) they feel are most appropriate, and discus them at a suitable time and pace in the client’s session. The toolkit is - like all these resources – considered to be a live work-in-progress. Please contact the Financial Capability and Consumer Education Team if you have any suggestions for improvements or alternatives.

Tips to keep in mind Advisors are not expected to always use this toolkit in isolation: it does not exist in an isolated project, and was never developed as part of a discrete pilot. Advisors are encouraged to use the factsheets in this toolkit to help tailor existing sessions – or inform new sessions – when working with clients at high risk of damaging lending.

Recording on Casebook Each factsheet in the toolkit has some recommended AIC codes for them. Advisers do not have to use these if they feel their particular intervention did not cover the recommended areas, but generally these codes will accurately reflect the intervention. Further advice on Citizens Advice evaluation methods is also included in the toolkit. The recommended AIC code is here

What happens next? This toolkit is designed for use with clients who have either suffered from or at risk of damaging lending, and is designed by in-house specialists. However, although the toolkit is provided for all local Citizens Advice and partner organisations to use, it is still very much a ‘work-in-progress’ and should be used as such. New versions will be uploaded online at regular intervals, in response to continued feedback and practical testing. For those local offices interested in new and innovative models, which are catered to address the differing channels and needs of our clients, they can see the various toolkits available in the Resource Toolkits tab of the financial capability section of the Citizen Advice website. Further toolkits will be added as they leave the testing stage of their respective projects.

For any further information or feedback, contact us at Financial For any further information or feedback, contact us at Financial.Skills@citizensadvice.org.uk

The Financial Capability and Consumer Education Team Bas Diablos Financial Capability Development Lead Dominic Mukwamba Financial Capability Development Officer Mel McGinn Consumer Education Development Consultant Abby Samuel

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