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

What about peoplewho won’t pay?The advice sector helps people exercise their rightsand understand their responsibilities. Sometimesadvisers might challenge a creditor’s ability torecover a debt, for example, when a benefit ortax credit overpayment is caused by official errorand the person could not have reasonably knownthey had been over paid, or if a consumer creditagreement was not completed correctly.But advisers will not help people avoid theirresponsibilities when they can and should pay.We are aware, however, that creditors willencounter people who simply will not pay. But itis extremely difficult, if not impossible, to tell thesepeople apart from people who have problemsmanaging their money.For example, there are people who won’t paybecause they can’t pay what their creditors areasking. There are people whose circumstancesmake it hard for them to deal with creditors, forexample, because of a mental or physical healthproblem or a previous bad experience. When thesepeople are contacted, by phone or letter, they maywell not be able to cope. As a result they may notrespond or simply put the phone down.How can these people be distinguished from thosewho could pay but won’t? There is no easy answer.However, if creditors take a flexible and pragmaticapproach, one that rewards engagement, givesincentives to repayment and addresses the person’sneeds over time, those who could pay but won’tpay should be easier to identify and deal with.24