Muna Yassin Money Matters Project

Welcome to Fair Finance October 2007

Fair Finance Fair Finance is a socially responsible and ethical lending company offering a fair and regulated service to those that need it the most. Our aim is to challenge those that profit from poverty such as door step collectors, money lenders and loan sharks. Fair Finance was established in April 2005 and sees over 1000 excluded residents of East London each year Fair Finance offers debt advice through the Money Matters Project as well as personal and business loans which are regulated by the Consumer Credit Act 1974

Money Matters Project Provides one-to-one Debt Counselling and casework for tenants and residents Began in June 2001 as a pilot Covers Tower Hamlets, Hackney and Newham Funded by and in partnership with local RSL’s

Why Housing Associations? Overwhelming numbers of indebted reside in social housing Those defaulting on rent payments often have issues of multiple debts It’s costing you money – time, voids, court costs, morale, community/tenant stability Gives RSL’s additional options as opposed to traditional court route

What MMP Provides to RSL’s Debt awareness training for front line staff Referral system ensuring that tenants have access to a specialist debt adviser within seven working days of referral Regular feedback and updates on clients referred

What MMP provides to clients Access to specialist debt advisers Free impartial advice and casework Home visits for vulnerable clients Budgeting and income maximisation advice and support Financially themed workshops

The Average Case Multiple debts Defaulting on rent and other priority debts Clients suffering other effects as a result of debts

What we have achieved so far…. Dealt with over £2.5 million worth of debts Repaid over £35,000 of rent arrears directly back to RSL’s with the remainder under repayment agreements Cleared over £350,000 worth of consumer and utility debts Seen over 450 people with over 220 from partner RSL’s

What we have learnt so far… People who are defaulting on rental payments often have issues of multiple debt Resolving these debts can have a beneficial impact on the rental statements of HA’s Advice and support provided by an independent agency preferable to tenants Saves RSL’s money – Money Matters Referral £1000 Rent arrears (£1,500-£2,000) £1,750 Legal costs and staff time £1,000 Lost rent whilst refurbishment and maintenance is carried out £750 Void costs of carrying the refurbishment* £3,000 Total Cost £6,500*much higher if a property is trashed before eviction is carried out ** Community Finance Solutions, Salford University

Challenges Confusion between Welfare Benefits and Debt Advice RSL’s need to be long term in view Culture of RSL’s

www fairfinance.org.uk.

Your response - Know of something similar? - Could this approach work for you, or a partner agency?