Do the right thing, Adviser's and creditors experience of best practice ...

If people in debt can’t see anybenefit of engaging with theircreditors, or if they don’t knowwhat’s expected of them, thingswill go wrong. People might avoid their creditorsif they can’t afford to pay what’sbeen asked, or if they think thereis nothing they can do to stop courtaction, or if they don’t know what’sexpected of them. Similarly, adviserscan find it hard to help people indebt if creditors do not communicateeffectively at every stage of thedebt recovery process, takinginto account that: Contacts should encourage engagementby offering help and supportMost debts are just one of several or part of a muchlarger problem. The person might be receivingmany calls and letters, all designed to pressure themto pay more than they can afford. Creditors shouldnot add to this, but should take a more positiveapproach, explaining why they are being contacted,how the person will benefit from engaging, whatthey need to do next and where they can get help.Repeatedly telling them what will happen if theydon’t pay in full should be avoided; it will beinterpreted as a threat and only serves todiscourage them from engaging. Decisions should be easy to understandDebt problems can be very complex. If people indebt don’t understand what’s happening or whatthey are expected to do, they may bury their head inthe sand. To avoid this happening, creditors shoulduse plain English and avoid using legal terminologywherever possible. Creditors should also beprepared to explain exactly how they have workedout how much is owed to them. For example, it isnot enough to state that a benefit or tax creditoverpayment has occurred, or present the personwith a demand for child maintenance arrearswithout explaining how the arrears werecalculated. 13