New report reveals 15% increase in debt advice customers with a car finance debt

Welcome to the June edition of StepChange News and Views, our monthly newsletter where you can keep up to date with everything happening at StepChange Debt Charity.

In this edition:?

• Our new report highlights the importance of debt advice in the car finance sector. We’ve been on the road to share some of our findings.
• We were thrilled to take home two Credit Awards earlier this month, for Debt Advice Provider of the Year and Best Cost of Living Crisis Response
• We’re gearing up for a new campaign which aims to educate consumers about the issue of ‘clone firms’ and make sure they get advice they can trust

On the road at the Credit Strategy Car Finance Conference

Last week we attended the Credit Strategy Car Finance Conference where we shared our insight into how the car finance sector is being impacted by the cost-of-living crisis for the first time.

Head of Charity Development, Vanessa Northam took part in a panel discussing defaults in the sector and how the industry can protect vulnerable customers. We also shared a new report which shows that StepChange has seen a 15% increase in debt advice clients with a car finance debt in recent years. Our new report explores further trends in our clients with a car finance debt and sets out why debt advice is so important in the car finance sector. You can read the report here.

We look forward to presenting the report and our findings in more detail at the FLA’s Motor Finance Convention on 11 July.

We’ll also be working with Experian on a joint research report into consumer debt and the car finance sector, which we’ll share at our upcoming webinar on 14 September. You can register for the webinar here.

We’re award winners!

Earlier this month we were thrilled to take home two awards at Credit Strategy’s 2023 Credit Awards, for Debt Advice Provider of the Year, and Best Cost of Living Crisis Response (Non-Creditor).

We’re delighted to be recognised for supporting clients and consumers through the crisis while continuing to provide high-quality, free and independent advice and developing our partnerships to reach more people in need of support.

CEO Vikki Brownridge said “The ongoing cost of living crisis has shone a light on the importance and value of free and independent debt advice, and we’re delighted to have been recognised in these two areas. It is testament to the tireless work of everyone across the charity who is driven by creating the best outcomes for clients, and ensuring people experiencing financial difficulty know we are there to support them.

“As millions of people struggle with their finances, we’ve seen our client volumes increase this year, and we’ll continue to provide high quality debt advice for all those who need it, while calling for policy changes to reduce the harm caused by problem debt.”

Our new campaign: Check it. Trust it.

We strongly support the Financial Conduct Authority’s announcement earlier this month that it will ban debt packaging firms from receiving referral fees to protect financially vulnerable consumers – you can read our full response here.

While we welcome the ban, referral fees aren’t the only issue affecting the sector. Next month we’ll be launching a new consumer campaign highlighting the mis-selling of debt advice and solutions.

We'll be highlighting the issues of ‘clone firms’ who disguise themselves as reputable advice providers and use misleading advertising of debt advice online and across social media to take advantage of consumers.

We’ll be encouraging people to be vigilant and sharing tips on how to make sure they’re using a trusted source when accessing debt advice. We’ll be sharing more information soon on how you can support the campaign in our partner email newsletter – sign up here to make sure you don’t miss out.

Other news

• Head of StepChange Scotland, Sharon Bell , was interviewed as part of a new BBC documentary highlighting the issue of lead generators and ‘clone firms’. Watch BBC Disclosure: The Debt Dealers on catch up here.
• Our new polling has found that 45% of mortgage holders, equivalent to almost 7 million UK adults, have found it hard to keep up with their bills and credit commitments in recent months. Read more here.
• The outlook is also bleak for renters, with new ONS figures revealing that median monthly rents are now the highest since records began, at ￡825 in England as a whole and ￡1500 in London. Read our response here.

Make sure to follow us and subscribe to keep up to date with the latest news and insights from StepChange. If you’d like to find out more about our work or partnering with us, please get in touch.?

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