CCCS receives a record number of calls

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There are more ways to address debt than many people actually realise, and it is fair to say that in the vast majority of cases there is more than one avenue open, which at least gives people a choice. As Melanie points out, we don't live in an ideal world but at least there are answers.

I would also concur with many of the points raised earlier in the thread as well.

Regards.

[CCCS Counsellor]

Hi Everyone,

Hope you're all well?

I have attached a link to the Ministry of Justice website that has a press release on that you can have a read through. I think it explains the token payment option a lot more clearly.

http://www.justice.gov.uk/news/newsrelease150310a.htm

As you are all aware, there has been something called a “credit crunch” going on and it means that a lot of people are in a very unfamiliar situation of not being able to afford their debts and also more importantly their priority expenditure.

These people in the past have had appointments with debt advice organisations (profit and non profit) and had an appointment and a budget produced and then advised to make token payments i.e. £1 per month until their situation improves.

For some people, bankruptcy is just not an option at this stage for many reasons i.e. it’s just a temporary situation, not wanting to sell their house, in a deficit and can’t support their situation. For these people historically they have never had the added guidance and support of those on a debt management plan or IVA etc so it was known there was a gap there.

This is why this new option has come into place to help people through a temporary blip, and to help them through the difficult time. Token payments are not a long term option and this is not designed as a long term option just to help relieve people from the added stress of debt whilst they are looking into different avenues for six months.

Melanie, I’m not ignoring your comment on the guidelines and happy to answer questions on the guidelines thread if you want? I just don’t want to deviate from the original topic as they are not linked.

Sarah

[MelanieGiles]

Sarah - can you just tell me when the guidelines are going to be reviewed again, and whether you are considering removing the petrol budget completely - as this is completely confusing one of the major voting representatives. Note that I have been in direct dialogue with your IP on the latter point.

[plasticdaft]

Sorry to jump into this but what do you mean about removing the petrol budget completely Mel?

[Michael Peoples]

Paul.The CCCS have a guideline for the amount of petrol and parking charges which is ludicrous. I recently had a client who was told he was not allowed £50 per week for petrol as it exceeded the guidelines. He was advised by the IVA company to claim other allowances that he did not have to make up the difference. He was unhappy with doing that in a legal document and came to ouyrselves for a second opinion. We disclosed his petrol usage and explained it which was acceptable to creditors. However, the other company had advised the client to lie because they did not believe that the CCCS guidelines could be exceeded.

[CCCS Counsellor]

Paul.The CCCS have a guideline for the amount of petrol and parking charges which is ludicrous. I recently had a client who was told he was not allowed £50 per week for petrol as it exceeded the guidelines. He was advised by the IVA company to claim other allowances that he did not have to make up the difference. He was unhappy with doing that in a legal document and came to ouyrselves for a second opinion. We disclosed his petrol usage and explained it which was acceptable to creditors. However, the other company had advised the client to lie because they did not believe that the CCCS guidelines could be exceeded.

Hi Michael,

The point of petrol has been noted for you all, and as mentioned the guidelines are just that. If a clients’ fuel is £50 per week to get to work, then this is what has to be noted in the budget – the advisor/ IP would then just back up this cost on the budget with an explanation.

One thing that would also have to be explored at the initial stage of debt advice would be to see if the client has high running costs for a car for example would it be cheaper to use public transport? – I understand this may not be an option for all people but for some it maybe.

Sarah

[MelanieGiles]

For most people living outside London, public transport is a nightmare and one which I would not enforce on my worst enemy!

[Simbel]

Melanie you are absolutely correct - my husband, me and at least one of our two children do a round trip of 127 miles per day which costs us the best part of £100 per week and rising. However, if we were to use public transport ie trains it would set us back roughly £9,000 per annum (something which in our case is completely not possible) - Not to mention the congestion charge which we have not put on our I&E (instead we leave home at 4.30 to beat the traffic and the congestion start time of 07:00).

[CCCS Counsellor]

Melanie you are absolutely correct - my husband, me and at least one of our two children do a round trip of 127 miles per day which costs us the best part of £100 per week and rising. However, if we were to use public transport ie trains it would set us back roughly £9,000 per annum (something which in our case is completely not possible) - Not to mention the congestion charge which we have not put on our I&E (instead we leave home at 4.30 to beat the traffic and the congestion start time of 07:00).

Simbel, as discussed public transport is just not an option for some people, every situation is different. Where I live the transport system is not the best but saves me a lot of money. If I drove to work I would have to pay at least £4 per day in parking, plus petrol, plus other running costs so would add up to about £200. I buy a bus pass instead that costs £72 a month so saves me over half and works well for me.

[Adam Davies]

Hi
Are the creditors going to freeze interest and charges during these six months or are they just going to "consider" the freezing of all charges ?
Regards

[kallis3]

For me to use public transport would involve a walk of half a mile to the nearest bus stop and three buses.

I work shifts and would not want to travel home late at night on my own.

And I only do a 25 mile a day round trip!

[hunnybunny]

Hi
Are the creditors going to freeze interest and charges during these six months or are they just going to "consider" the freezing of all charges ?

Good point Andy. The token repayment scheme also assumes that the person's situation would improve during the six months of paying £1 a month. I would want to ask what happens at the end of the six months if the situation hasn't improved?

I certainly remember when I was a CAB volunteer over ten years ago that we were regularly proposing token repayments on behalf of clients for whom it was clear that the situation would never improve enough for them to make any significant repayments, often due to job losses, bereavement, illness or relationship breakdown.

[CCCS Counsellor]

Hi Hunnybunny & Andy,

I’m not too sure of the full process as yet but will keep you updated as soon as I have more information. As far as I understand it would work in the same way as a DMP – but don’t hold me to that.

I’m out of the office now until Monday so will be back on the forum then; hope you have a nice weekend.

Sarah

[johnB]

My IP had issue with my fuel costs (averaging £400 - £500 per month), however, I submitted receipts proving the cost and they had to accept it.

As for public transport thats a joke! I would have to wait for the first bus to go through my village, which isn't until 7.30am. The journey takes about an hour and a half and has 2 changes and then I would have a half mile walk. And I have to be at work for 8.30am, so totally impractical. Also last bus of the evening is 6.15pm, so no chance of working late either!!

There seems to be an realistic approach to how people in IVAs are supposed to deal with rising fuel costs by some IPs. Mine was really difficult with me about this, but once I sent in receipts and pointed out my job paid well and this had resulted in an increase in contributions to my IVA, it was accepted.

I was unaware there was guidelines on this and maximum amounts. That sounds totally unworkable to me!!

[Skippy]

I know what you mean about public transport John - I live 4 miles from work and it takes me about 20 minutes in the car and over an hour by bus and I still wouldn't get there on time!