Citizens Advice staff facing redundancies

[Latch Key Kid]

Re: Citizens Advice staff facing redundancies

What do you think LKK of the plan to offer CU services through Post Offices ?

I also think the gov't should revisit the plan to extend budgeting loans to low incomes on CU interest rates (think in 08 they were talking on 27%), what do you think ?

Hi Amethyst -

Interesting subject.

Catch you later with this, got to go out for the afternoon now.

[Angry Cat]

Re: Citizens Advice staff facing redundancies

Can we please, get back to the FIF and CAB etc...

[Amethyst]

Re: Citizens Advice staff facing redundancies

I didn't think we had left the subject.


Yesterdays discussions in HOC

Backbench Business ? [18th Allotted Day]: Legal Aid Reform (3 Feb 2011) - Legal Beagles Consumer Forum
or Legal Aid Reform: 3 Feb 2011: House of Commons debates (TheyWorkForYou.com)

I was going to quote the relevant parts - but they are all relevant - mainly on legal aid funding issues but also on FIF.

[Amethyst]

Re: Citizens Advice staff facing redundancies

This is more useful

The Government are working closely with the Consumer Financial Education Body (soon to be known as the Money Advice Service) to take a preventative approach-so that consumers can better manage their own finances and avoid getting into unsustainable debt. This includes creating Britain's first free national financial advice service, including an annual financial healthcheck.

Which backs up what I said a few posts back.

'' creating Britain's first free national financial advice service ''

ffs, preventative is good, but the after affects needs sorting too. I can't see that taking over from CAB...as I say CAB is much more than just debt advice.

Also

Albert Owen (Ynys Môn, Labour)
May we have an urgent debate on the future of citizens advice bureaux funding, which has been squeezed by both local and central Government? When I raised the matter with the Treasury, I was told that it was looking to enhance the role of citizens advice bureaux, given the rising unemployment and debt. Extra resources will be needed to do that, so may we have a debate on that important point?

• Hansard source (Citation: HC Deb, 3 February 2011, c1047)

George Young (Leader of the House of Commons, House of Commons; North West Hampshire, Conservative)
I understand the hon. Gentleman's concern, and this subject was raised last week. Following that, my hon. Friend the Financial Secretary to the Treasury wrote to Kate Green and a copy of the letter was put in the Library. I suggest that the hon. Gentleman has a look at it, because it sets out our proposals to establish a money advice service, delivering the UK's first nationally available free financial advice service.

So how do we get that letter then lol - FOI sent...for that and comms between gov't and CFEB. They have already refused comms with CAB over FIF as CAB arent an FOI body.

[Nibbler]

Re: Citizens Advice staff facing redundancies

Plus, many debt and associated problems are due to things such as redundancy, illness, divorce/breakup and other life changing events. Some of them outside what most people might anticipate or pro-actively plan for. Especially in current times.

'preventative' help is fine, but pulling the help available to people who have not had the chance to plan for something unforeseen is not.

[Chip Tuesday]

Re: Citizens Advice staff facing redundancies

Hi Chip Tuesday

I am talking about any company that charges extortionate rates of interest in relation to the likely forthcoming reduction in face to face advice provision for the most vulnerable.

You could say it is up to the consumer / public to educate themselves on any service or product were injustice occurs, which I suppose is true to certain extent but it is not always that simple and there are many who cannot and are easy prey.

It is no coincidence either that in my experience it is the most vulnerable or people at their lowest ebb who turn to these type of companies, some would argue that they only really exist to prey on this type of customer.

People and young familes getting behind with their rent and other essentials / priorities (including food for their children) as a result of paying these loans first. This can often lead to the threat of possession and eviction, I have been to many court hearings relating to this very subject.

A wry smile appeared on my face reading the - "they are not intended as a long term solution"

Also I cannot agree that the practices and rates of interest charged by some of these companies can ever be right and justified. Even the doorstep lenders are starting to look good compared to this type of outfit.

Your are right though, more financial education can only help however there are millions already in the mire and as far as I can see these adverts won't excactly help.

More promotion and availabilty of the Credit Unions? but they can never compete with the instant cash some these companies offer.

Goon news on the payday loan front, there will be a cap on the % of interest they're allowed to charge, but having said that 4,000% is still steep by anyone's standards :S

MSE article, Government supports payday loan crackdown

CT

[Amethyst]

Re: Citizens Advice staff facing redundancies

The debates I linked to early are the same, theres def no cap at 4000% lol. Nothing has been decided the vote was actually in response to this

Main Question, as amended, put and agreed to.
Resolved,
That this House notes with alarm recent evidence showing a fourfold increase in the use of payday lending since the beginning of the recession and that high cost credit lenders advanced approximately £7.5 billion to low and middle income consumers in 2008 alone; recognises the problems of financial exclusion, lack of financial and debt management education, lack of price competitiveness in the unsecured lending market and the near monopoly positions of many large lenders which contribute to the high costs of borrowing; considers that without action these factors could worsen family debt, poverty and financial difficulties to the detriment of the economic recovery; therefore calls upon the Government to introduce measures to increase access to affordable credit; urges regulators to consider putting in place a range of caps on prices in areas of the market in unsecured lending which are non price-competitive, likely to cause detriment to consumers or where there is evidence of irresponsible practice; and believes that such caps should take account of the desirability of maintaining access to affordable and responsible credit, the likely impact on the supply of credit and the cost of enforcement, that they should be regularly reviewed and that they should use the total cost of credit, calculated on a yearly basis, to ensure that lender avoidance and distortions in price are prevented.

The bill under discussion is Consumer Credit (Regulation and Advice) Bill 2011 - Legal Beagles Consumer Forum

[WendyB]

Re: Citizens Advice staff facing redundancies

Apparently all CAB in Birmingham are going to be closing. There was a head honcho CAB chap on BBC the other morning saying that overall the service would be cut by 45%

[leclerc]

Re: Citizens Advice staff facing redundancies

Not sure if relevant but CCCS press office have tweeted this:
"Fee-charging debt companies must not be allowed to plug the gap left by the reduction in public funding for debt advice"

[Amethyst]

Re: Citizens Advice staff facing redundancies

Good.

BBC News - Coventry CAB starts a campaign to save it from closure

BBC News - Councils to decide Citizens Advice Bureau funding levels


at least CA have said something now. The Press Association: Citizens Advice warning over cuts

[Amethyst]

Re: Citizens Advice staff facing redundancies

Independent of Government and funded by a levy on regulated financial services firms, the Money Advice Service helps people to understand and manage their money. It does this by providing free, unbiased information and advice online, over the phone and face-to-face. It also plays an important role in influencing policy makers, regulators and the financial services industry, and works closely with a range of partners to achieve this.

CFEB Careers
http://www.cfebuk.org.uk/pdfs/CFEB_Business_Plan.pdf

It just isnt the right kind of advice and is focussed on preventative and education, yes all very necessary but it needs backing up with some 'what the heck do I do now' advice.

[Nibbler]

Re: Citizens Advice staff facing redundancies

Have these been mentioned yet? Just saw this posted elsewhere.

These important debates are happening next week in the Commons.....

Tuesday 8 February
9.30 am – 11 am raised by Yvonne Fovargue MP
- Future funding of independent debt advice

Wednesday 9 February
4.00pm – 4.30pm raised by Jack Dromey MP
- Future of the Citizens Advice Bureaux

It would be very helpful if you could all ask your MP to attend the House at these times (if you think they are sympathetic to the cause!) A quick e-mail is all it needs.

[Nibbler]

Re: Citizens Advice staff facing redundancies

Actually, Westminster Hall by the looks of it?

Parliament UK: Parliamentary Calendar

Parliament UK: Parliamentary Calendar

[Latch Key Kid]

Re: Citizens Advice staff facing redundancies

Hi Amethyst -

Interesting subject.

Catch you later with this, got to go out for the afternoon now.

Hi again Amethyst

Back again

I am a supporter of Credit Unions and any initiative that expands the availability of affordable controlled credit has got to be a good thing in my book.

Involving the Post Offices with Credit Unions looks a good idea, however, not too sure how it will work in practice due to the admin / cost and logistics of it all.

[Latch Key Kid]

Re: Citizens Advice staff facing redundancies

Plus, many debt and associated problems are due to things such as redundancy, illness, divorce/breakup and other life changing events. Some of them outside what most people might anticipate or pro-actively plan for. Especially in current times.

'preventative' help is fine, but pulling the help available to people who have not had the chance to plan for something unforeseen is not.

Hi Nibbler

Its called "shutting the gate when you can see the horses coming back"