1. 1 Foundation for Credit Counselling Malcolm Hurlston CCCS – the UK’s leading debt charity

2. 2 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

3. 3 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

4. 4 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

5. 5 How we work Consumers contact us on an 0800 free phone helpline Helpline Or visit the CCCS website

6. 6 The CCCS website also provides information CCCS Debt Remedy

7. 7 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

8. 8 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

9. 9 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

10. 10 How we work Debt Management Plan CCCSClientCreditors 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

11. 11 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

12. 12 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

13. 13 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

14. 14 What we achieve Helpline calls 294,000 Counselling appointments 89,000 New debt management plans35,000 Active debt management plans74,000 Disbursement to creditors £140,250,000 Annual volumes and service - 2006

15. 15 What we achieve Annual volumes and service People contacting our helpline

16. 16 What we achieve Annual volumes and service People receiving counselling

17. 17 What we achieve Annual volumes and service Debt Management Plans

18. 18 What we achieve Annual volumes and service Repayments to lenders (£ million) (£millions)

19. 19 What we achieve Customer service calls – clients320,000 Customer service calls - creditors117,000 Counselling support calls152,000 Annual volumes and service - 2006

20. 20 What we achieve Annual volumes and service Charity Employees 70% of employees are working directly with clients

21. 21 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

22. 22 Questions