MPs: MAS not fit for purpose

[EXC]

''In a report published today, the Treasury Committee has called on the Government to commission an independent review, to be completed no later than summer 2014, looking at whether the Money Advice Service (MAS) should continue to exist as a statutory organization.....The Money Advice Service is not currently fit for purpose. It is far from clear that it has adopted the right strategy or even that it is performing the correct role.....''

http://www.parliament.uk/business/co...dvice-service/

[enaid]

Re: MPs: MAS not fit for purpose

Can they actually get anything at all right to help the people who they so arrogantly govern.

[Amethyst]

Re: MPs: MAS not fit for purpose

Sigh. Just turn things around, don't ditch them and start a new lot up for goodness sake.

In appointing a new Chief Executive on a salary considerably lower than that of her predecessor, the Money Advice Service, the FSA and the Treasury appear to have recognised that the remuneration of the former Chief Executive of the Money Advice Service was excessive. [...] We regret, however, that the decision to reward the previous Chief Executive so excessively was taken in the first place and that two members of staff continue to be paid more than the current Chief Executive. These decisions risk undermining the credibility of the organisation. (paragraph 75)

PDF download -> http://www.legalbeagles.info/forums/...1&d=1386060112


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November 27th MAS released a HUGE report showing how the country was still struggling

Read the report in full (PDF)
via Indebted lives: the complexities of life in debt – Money Advice Service.

Commenting on the MAS findings, Caroline Rookes, CEO of the Money Advice Service said:

“Millions of people could escape their spiral of debt by accessing free advice. We know it transforms lives and the sooner people access it the better – to take steps to improve their life for good. However, this study presents us with a fundamental challenge: the majority of people with debt difficulties do not seek advice. This is the first time we’ve had such a detailed understanding of the complexity of their lives. So now, armed with greater insights, we will work with advice agencies, creditors, and public bodies to help as many people as possible access free, high-quality, debt advice.”

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Which links in with the Treasury Report

The “advice gap”
16. The term “advice gap” refers to the number of people who are unable to access
financial advice. In its written evidence, the Money Advice Service quantified the problem
as follows:

Some 23m people do not know where to go for impartial advice on credit and
borrowing, only 15% has a financial adviser and one in five people have someone
they trust to confide about money.

17. In July 2011, the Committee reported on the Retail Distribution Review (RDR), a
major reform by the FSA of the regulation of retail investment advice. During our inquiry,
we heard evidence that the RDR could increase the ‘‘advice gap’’. In our report we
expressed our concern that “the loss of advisers, particularly individuals and those in small
firms, will disadvantage smaller savers by reducing choice and competition.”

As a result
of the RDR, the Financial Services Consumer Panel commissioned research to “look at the
‘advice gap’ in the UK”. This research concluded that “there were a number of factors
which were increasing the advice gap, which can, in part, be met by a generic advice service
such as the MAS.”

[EXC]

Re: MPs: MAS not fit for purpose

Sigh. Just turn things around, don't ditch them and start a new lot up for goodness sake.

Agreed. The problem is that nowadays select committees seem to think that their primary function is making headlines in the media.

[Amethyst]

Re: MPs: MAS not fit for purpose

The answers are so obvious ! Argggggggghhhhhhhhhhhhhhhhh.

Delroy Corinaldi of Step Change, a debt advice charity, suggested that those seeking advice
needed a more personalised service than that proposed by the Money Advice Service. He
told us that:
When they are in that crisis zone and they feel like bricks are falling on their heads,
what they want is help. I think they associate advice and help as being one and the
same, and what they look for is a trusted advisor to take them through that.


Adam Philips, the Chair of the Financial Services Consumer Panel, also suggested that,
while there were many instances where general information was sufficient, “At various
points in those periods you may well need face-to-face or some kind of human interaction
with somebody to help talk you through your particular issues.”43

53. Gerard Lemos, then Chairman of the Service, denied that it was duplicating resources
that were already in existence. He told us that:
We do hand off to lots of other websites, including MoneySavingExpert and the CAB
service. We do not want to compete or duplicate. A challenge was put to you last
week, was it not, that we are competing and duplicating things that already exist? I
do not think that is true, frankly. The issue is that we are seeking to fill this advice
gap and to reach people.89

[enaid]

Re: MPs: MAS not fit for purpose

Agreed. The problem is that nowadays select committees seem to think that their primary function is making headlines in the media.

And not giving a toss

[EXC]

Re: MPs: MAS not fit for purpose

''We do hand off to lots of other websites, including MoneySavingExpert ''

Head in hands. Not criticizing MSE at all but if they're relying on them to such an extent doesn't it occur to them that it's because their own model isn't right?

[Amethyst]

Re: MPs: MAS not fit for purpose

Popularity of debt advice websites in the UK (according to Alexa)

Have they actually done a full investigation into actual online debt advice (as opposed to just information/ email and telephone )

[Amethyst]

Re: MPs: MAS not fit for purpose

''We do hand off to lots of other websites, including MoneySavingExpert ''

Head in hands. Not criticizing MSE at all but if they're relying on them to such an extent doesn't it occur to them that it's because their own model isn't right?

Absolutely agree. It was like Trading Standards sending people to 'look on CAG''. Completely bonkers.

[Amethyst]

Re: MPs: MAS not fit for purpose

MAS claims £12m marketing budget is “price of engaging” 17 December 2013
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The chief executive of the Money Advice Service (MAS) has defended its £12.68m annual marketing budget as outlined in its 2014-15 business plan.

Caroline Rookes told Credit Today its marketing budget is “broadly right” and hailed its marketing campaign “successful”, with the organisation currently attracting 300,000 contacts a week.

She said: “I think we will always spend money [on marketing] but I don’t think it should be perceived as money wasted in any sense of the word. It’s the price of engaging people and to some extent giving out advice as well.”

Rookes explained the Service has started to embed advice within its TV adverts and cited one example where it advised people to consider budgeting in order to pay for household bills.

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WOW ! Out there thinking ! Would never have thought of budgeting to pay household bills !!