UKAR ARENA | A NEWSLETTER FOR DEBT ADVISORS | AUTUMN 2015 | ISSUE 10 | UKAR-ARENA.CO.UK
JOINED UP
WORKING.
A partnership approach to ongoing success by Richard Banks, UKAR CEO.
Since our formation in October 2010, UKAR has
been committed to maximising value for the taxpayer
whist providing help and support to the customers of
NRAM, Bradford & Bingley and Mortgage Express for
as long as they remain with us.
Helping customers in financial difficulty access the
best debt advice for their circumstance is crucial, and
working closely with the debt advice industry allows
us to do just that.
RICHARD BANKS
CEO
UKAR
Now, as we launch our tenth issue of UKAR ARena, it
feels appropriate to look back at what we have achieved,
on behalf of both customers and taxpayers, and to
introduce some of the exciting developments ahead.
Proactive Engagement
Supporting customers from the first signs of financial
difficulty and engaging with them constructively has
always been a key focus for us at UKAR. The earlier
we find out about potential problems, the more we
can do to help.
WE REFERRED
APPROX
2,200
CUSTOMERS
TO NOT-FOR-PROFIT
DEBT ADVICE
WE MADE
23,000
ARRANGEMENTS
TO PAY
4
That’s why we take a proactive approach to debt
management, engaging with customers who are
experiencing financial difficulty but also with those
showing signs that they may struggle to cope in the future.
Our most recent pro-active campaign encouraged
customers to think about and plan for when interest rates
begin to rise, to ensure they are in a position to maintain
their payments. Since January this year, we have mailed
more than 35,000 customers who we believe might
struggle if rates were to rise by one percent.
As a result, approximately 11% of those contacted
have started making regular overpayments to
limit the impact when rates do rise. Following the
campaign we have also seen £50m of redemptions
from customers who may have found a better deal
with another lender, such as a fixed rate – something
we are unable to offer.
Reducing Arrears
For those who are struggling we are always looking
for new ways to offer help and support, either from
our dedicated Customer Assistance teams or by
referral to third party, impartial debt advice. In the
last financial year (1 April 2014 to 31 March 2015)
we made 23,000 ‘arrangements to pay’ and referred
around 2,200 customers to our not-for-profit debt
advice partners.
Our year end results, to March 2015, also
demonstrate the effectiveness of our approach as the
number of mortgage accounts three or more months
in arrears reduced by 23% and the number of new
repossessions fell by 43% from the previous year.
At the end of March 2015, 60% of accounts one
month or more in arrears were in an arrangement
to pay and encouragingly 75% of these customers
maintained their arrangement.
“WE WORK CLOSELY
WITH THE DEBT
ADVICE INDUSTRY
TO PROMOTE
FINANCIAL STABILITY
AND AWARENESS.”
Value for the Taxpayer
Helping customers manage their finances, whether
it be re-mortgaging elsewher K