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INCREASE IN DEMAND FOR CONSUMER CREDIT COUNSELLING

Demand for consumer credit counselling has surged by 25 percent in the period to Easter 2004 compared with last year, according to the Foundation for Credit Counselling, Britain's leading debt charity.

If the current growth rate is sustained, CCCS will be helping nearly 150,000 people in the course of the year and repayments to creditors will reach £80 millions.

The margin within the Foundation's expansion plans has ensured that the quality of service has nonetheless reached a new high, with over 90 percent of calls from both creditors and customers being answered.

The growth is attributable to CCCS and the quality of its service becoming better known, according to FCC chairman Malcolm Hurlston who says:
"There is no evidence that debt is becoming more of an issue and the marketing of consumer credit counselling has if anything been reduced compared with this time last year".

At the same time FCC has been taking a lead in meeting the government's need for an additional gateway to help the diminishing but substantial number of people who do not know where to find free advice and support. FCC has developed a proof of concept which it is now preparing to test in a pilot scheme, working with four citizens advice bureaux who will provide extra face to face to support the pilot. FCC is providing funding for the CABx involved in the West Yorkshire pilot, the results of which should be clear by the first quarter of 2005.

Additionally FCC has provided fair share funding of almost £25,000 for National Debtline in the first quarter of 2004.

"Our first aim is to develop credit counselling to its maximum potential", said Malcolm Hurlston. "We have already made great strides towards introducing the repayment ethic to Britain and this will need reinforcing in view of the uncertain impact of the Enterprise Act, which while well intentioned, could encourage irresponsibility. The whole purpose of our approach is to put people back in control of their own lives."

CCCS helplines are open between 8am and 8pm on Monday to Friday. It offers self-help packs, in-depth advice sessions as well as debt management plans. There is no charge for any of its services.

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