‘recovery’: helping creditors to work better with indebted customers who have mental health problems Chris Fitch, Ryan Davey and Jim Fearnley College Research Unit, Royal College of Psychiatrists Money Advice Trust

1. debt is common 3. creditors want to address this issue 2. a relationship exists between financial difficulty and mental health

recovery: 18 month project Friends Provident Foundation aims: improve practice of front-line creditor staff methodology: national survey field-evaluation of DMHEF outcomes: creditor sector recommendations tailored report endorsement: major trade bodies

evidence 1st November 2009 tools second edition 2009 resources first edition 2006 second edition 2009

creditors face significant challenges

 contact customers may become anxious when contacted - some may disengage, ignoring calls or letters  communication staff may have difficulty communicating with customers or understanding how their mental health problems are relevant  consumer reports 16%* treated sympathetically and sensitively 28%** asked how mental health affected debt * 47/291 participants that disclosed (≥2 consec pay; 31% overall sample) ** 79/291 participants that disclosed

 contact customers may become anxious when contacted - some may disengage, ignoring calls or letters  communication staff may have difficulty communicating with customers or understanding how their mental health problems are relevant  consumer reports 85%* - mental health made financial difficulties worse 91%** - financial difficulties made mental health worse * 788/924 participants (≥2 consec pay) ** 840/924 participants (≥2 consec pay)

 contact customers may become anxious when contacted - some may disengage, ignoring calls or letters  communication staff may have difficulty communicating with customers or understanding how their mental health problems are relevant  consumer reports “I am not on top of bills etc - and then forget to make payments and deal effectively with issues. I do a very good ostrich impression and bury my head in the sand.”

 disclosure customers may have difficulties or fears in relation to talking about their mental health to staff. This includes its impact on their ability to manage their finances – this reluctance can mask underlying problems which staff need to know about  consumer reports 27%* worried future credit 57%** don’t like disclosing 63%*** wouldn’t understand 59%**** no difference 47%***** wouldn’t believe 67% didn’t tell creditor about their mental health problem * 253/294; ** 298/924; *** 584/924 **** 546/924; ***** 438/924

 resources it can take longer to establish what needs to be done  can’t pay or won’t pay? difficult to distinguish between those with mental health problems, and those perceived as using mental health as an ‘excuse’  evidence obtaining relevant and clear evidence about a customer’s mental health can be challenging

 personal information collection and storage of sensitive personal information about mental health may raise important questions for organisations  consumer reports 15%* asked for consent to record details of MH 4%** clearly told how information would be used 59%*** explain situation to several people in same organ. 31% disclosed MH to creditor (291/924) * 42/282 participants (≥2 consec pay) ** 11/282 participants (≥2 consec pay) *** 166/281participants (≥2 consec pay)

 decision-making using information to make decisions about what to do in relation to an account or treatment of a debt is not always easy  consumer reports 10%* built into decisions 31% disclosed MH to creditor (291/924) * 29/281 participants (≥2 consec pay)

not first effort to address this

but is first survey and review of frontline practice

 quantitative surveys The programme uses a combination of rapid survey and interview research techniques.  qualitative interviews These provide representative and rich data, whilst minimising the amount of time staff are required to engage with the research team.

 policy and frontline Involving research with policy and operational (including customer-facing) staff  process the programme focuses on the process through which debts are recovered – from collections and recoveries through to litigation.  challenges identify the challenges that staff encounter when working with customers who report mental health problems that are affecting their ability to manage or repay their debts.

 commercially realistic locating these challenges within the wider commercial realities  economic solution identify solutions that meet these challenges effectively and economically.  health help companies minimise any distress or ill-health that many customers may experience at an already difficult time.

 recommendations will focus on how staff can work more constructively and effectively with customers with mental health problems, rather than on issues around commercial decision-making.  industry-wide outputs practical recommendations for the credit industry in general, in consultation with trade associations.  tailored feedback each creditor organisation and debt collection agency participating in the programme will receive a confidential, tailored report with step-by- step recommendations on improving practice.

how you can help?

creditors: accept our invitation to participate other stakeholders: carefully consider opportunities and constraints for front-line creditor staff