Annual Report 2002-03

The Enemy at the Door?

The former mining areas have some of the highest poverty and deprivation levels in the country.

The ease with which credit can be obtained, combined with high interest rates and hidden charges, can turn an already impossible situation into a nightmare. Doorstep collectors often charge up to 440% APR and yet this is not considered extortionate!

Image how difficult it is for vulnerable families on low incomes to resist the offer of cash and/or toys for their children. They are told what the weekly repayments will be and they seem manageable. What they are not told is what the eventual cost of the borrowing will be.

Families can never escape the constant knocks at the door and the further offers of borrowing from their seemingly friendly collector. North East Derbyshire CAB is calling for more regulation of these lenders and for them to accept some responsibility for the £51.98 billion owed by Britons through personal loans.

With borrowing running at record levels, debt can affect anyone irrespective of age and status, and for many reasons. Illness, separation, job loss, business failure and living on benefits are just some. A number of reports have confirmed the link between debt and poor health.

One area of particular concern is the number of clients we are dealing with who have some form of health problem, both physical and mental, these currently account for approximately 30% of enquiries.

Over the last year we have dealt with an ever increasing workload involving hundreds of enquiries from a cross section of people, some of which have been extremely complex and time consuming.

We have handled in excess of £3 million of debt covering areas such as mortgage, rent, council tax, bailiffs, utility bills, including problems with change in suppliers, credit cards, loans and mail order.

We have represented many clients at court hearings involving fines, repossession of property and goods, charging orders and bankruptcy, including representation with clients at the Official Receivers office.

We have been successful in obtaining grants totalling more than £60,000 through charities including many applications to the Severn Trent Trust Fund, Royal British Legion and others. Income maximisation is an important part of money advice.

This year we have identified and assisted our clients with benefit claims worth thousands of pounds and large gains in previously unclaimed tax credits which has made a real difference to peoples lives. We have worked closely with Derbyshire Trading Standards regarding the practices of some loan companies and debt management companies in relation to fees and service provided and will continue to do so in the future.

Welfare Rights

Another busy and hectic year for the welfare rights team. Our success at appeals has been tremendous and the workload continues to rise. The introduction of working and child tax credit saw several clients encountering difficulties with the administrative vagaries of Inland Revenue. We look forward (we think) to pension credits and their smooth introduction!

Social Policy

We have continued to monitor doorstep lenders. We have identified some poor practices by local lenders and fed back out findings to Trading Standards. In one particular case there was a possibility that the companies credit licence could be removed. We have also reported numerous difficulties with tax credits.

Training

All paid staff regularly attend training events to keep up to date with their professional practice. We have a small but regular injection of new trainees each year who enjoy their training with us and provide a loyal enthusiastic and professional service to the bureau and the community.

From the Chair

As you can see from this report, the bureau is embracing the 21st century with open arms. The website has proved to be an extremely popular and ground breaking innovation. Expressions of interest have come from several other bureaux who wish to tap in to our expertise to help them develop their own sites and create a county bureaux page.

In addition to these exciting events I wish to recognise the continued hard work and dedication of all the bureau staff who never fail to give that extra effort to ensure good outcomes for our clients.

Lastly, none of the above would be possible without the support of North East Derbyshire District Council, the Legal Services Commission, The Parish and Town Council and the Children's Fund.

Last updated: March 15, 2007