"As providers of a wide range of front-line public services to the socially and financially excluded, A4e has rich experience of the multiple challenges people face in staying afloat." They know that people who are "unbanked" get trapped into high-interest loans. So the government should buy out this debt from the high-street lenders, and the debtors could repay it at a low rate of interest. I can't really see that happening. Interestingly, the document states that 50% of the clients of A4e's CLACs are repeat customers because they haven't changed the behaviour which keeps getting them into debt.
There's a paragraph which needs decoding. It's arguing for "a single interface" through which people can be referred for debt advice. I wonder who would run that.
"Interestingly, the document states that 50% of the clients of A4e's CLACs are repeat customers because they haven't changed the behaviour which keeps getting them into debt."
ReplyDeleteThis is often down to people taking out a loan to pay off an existing loan. A man could be £3,000 in debt on a credit card for example but is offered another card and uses this to pay off the first card and so never really gets off the cycle of debt.
"In the interests of a more seamless experience for the customer, it should be possible to direct people through a single interface, behind which sits a diversity of providers and channels of advice."
There already exists help and advice for those with debt issues such as the CAB and the CCCS (Consumer Credit Counselling Service). They are free to use and are non-profit organisations and will give unbiased advice.
Would I trust A4e to provide debt advice? Well, I'd like to think I could trust the organisation I was getting such help from. So you can work out the answer to that one!!!!