Advocacy
There are four overarching objectives which Credit Action’s advocacy work looks to achieve. Everything that we do seeks to advance at least one of the following aims:
1: Increase levels of financial literacy and capability
It is not in anyone’s interest to have a poorly informed consumer base that cannot handle credit responsibly. We therefore believe that raising levels of financial literacy and capability are hugely important.
To help achieve this, we would like to see money education courses offered to those coming to the end of their Debt Management Plan, and added to the insolvency process. We also believe that it is essential that financial education becomes a compulsory part of the school curriculum.
2: Address issues of consumer detriment
If consumers suffer detriment, it is essential that they are able to seek appropriate redress wherever possible, and also that lessons are learned so that such problems do not emerge again. This is crucial to ensuring that markets operate effectively and in consumers’ interests.
We believe that students and graduates are one particular group of consumers who have experienced detrimental practice. We therefore believe that it is very important that students and graduates are given a fair deal. They should not be plagued by the delays in the payment of student loans witnessed in the last few years, and should also be able to repay their loans through a simple and transparent system.
We will be watching to see what happens this autumn.
3: Remove the fear and confusion that so often surrounds the topics of money and finance
We think that it is vital that consumers receive information about financial products in a way that encourages them to make informed financial choices. If information is presented in a way that is likely to confuse consumers, or in some cases even frighten them, they are more likely to make poor choices which are ultimately detrimental for everyone.
One policy which we believe would help support this is for overdrafts to be attributed with a clear APR, which is something we will look to push forward in the coming months.
We will also develop our Quality Marking initiative working with creditors to remove the confusion and fear that consumers often feel when receiving correspondence from creditors.
4: Promote financial inclusion
We believe that promoting financial inclusion is essential to lifting thousands of households out of poverty and exclusion. Ensuring that the right structures are in place to achieve this is crucial.
We therefore believe that both the Social Fund and Post Office should undergo reform to combat financial exclusion, and to provide real help and services to the most vulnerable consumers.
We also believe the Government should support the development of credit unions, and a link must be strengthened between the Post Office and credit unions.
Pursuing our Objectives
There are a number of ways in which we pursue our advocacy objectives. These include:
- Building relationships with MPs and other key stakeholders.
- Responding to Government consultations. You can view our recent consultation submissions by clicking on this link.
- Working with partner organisations to undertake joint policy activity. One example is through our involvement in the Community Voice Forum.
If you want to find out any more about our Advocacy work, please contact Joanna Parsley or John Davies at Credit Action, either by email at office@creditaction.org.uk or by telephone on 0207 380 3390.
