Its focus will be to ensure timely help is provided to customers and that consistently high standards of advice are applied across the country wherever over-indebted customers may turn.
The Money Advice Service is to reveal the main features of its new approach at a meeting in London today attended by Consumer Minister Norman Lamb MP, representatives of advice agencies and financial organisations.
The highlights of the new approach are:
- a commitment to automatic referral of customers by creditors to an effective advice service so people get the best advice for their needs before a crisis is reached;
- improved availability of "triage" services for customers, so those who need it get the right kind of timely advice online, on the phone or face-to-face, with a solution satisfactory to both creditors and debtors;
- increased participation of creditors in "fair-share" arrangements; and
- more consistent and higher standards of service delivery wherever customers go.
The Money Advice Service's approach is based on new evidence showing that two million households a year would value debt advice.
From 1 April, its new role in debt service provision will be twofold:
- developing a model of efficient debt advice delivery with customer needs at its heart, supporting customers in crisis and encouraging them to act early; and
- ensuring that the long-term funding of debt advice is placed on a sustainable footing, recognising the importance of the creditor industry in its development.
In the transitional period from April 2012 to March 2013, the Money Advice Service will enter new agreements with existing face-to-face debt advice providers, currently operating directly under the auspices of the Department for Business, Innovation and Skills.
These will focus on service delivery and an increased volume of direct contact for those in most need from 100,000 to 150,000 customers per year.
