Melanie Giles of Association of Professional Debt Solutions Intermediaries

In our special association In Profile, we sit down with Melanie Giles of the Association of Professional Debt Solutions Intermediaries (APDSI)…

APDSI has been an active association since October 2010; could you tell us a bit more about some of the organisation’s most significant achievements?

Since its launch in the Autumn of 2010, the association has grown from a handful of founder members to its current level, and is continuing to grow as new entrants identify the benefits of belonging to a reputable trade association which shares in-depth industry knowledge from a broad range of experts. In the last year presentation have been made to the Institute of Credit Management, the Money Advice Liaison Group and the Office of Fair Trading, as we continue to support the Trigold Crystal Business Academy events right across the UK.

What is your role within the association?

I am a founder board member and a Licenced Insolvency Practitioner in practice – running a group of companies which provide personal and corporate insolvency solutions right across the UK. My role is to promote the merits of APDSI membership to those intermediaries who regularly or occasionally will come into contact with clients requiring debt advice or solutions,  and to provide specialist case related support should this be required.

What inspired you to become a founder member of APDSI?

The vision of the APDSI is to provide a framework for financial intermediaries to seek specialist support for their clients in financial difficulties through reputable channels. Often, as a result of lack of detailed knowledge or being nervous of operating in a tightly regulated area, intermediaries may have felt unable to provide the correct signposted solution. APDSI was incorporated to provide a one-stop shop for advice on the various solutions available, from a reputable and properly licensed network. Our members recognise the benefits of this network, and my inspiration comes from seeing intermediaries inspired themselves to work together to find solutions for all client needs – whether they are the direct provider or the conduit to a specialist service line.

2012 looks set to be an important year for the debt industry, particularly with regard to the release of the updated Debt Management Guidance from the OFT which is due in March, what significant changes do you foresee over the next 12 months?

Consumer debt is always a fairly high profile issue, and with an ever greater squeeze on family disposable income it seems that those of us involved in this marketplace can foresee another busy 12 months ahead. I am particularly noticing a higher demand for debt advice and forgiveness from small business owners, who are suffering from a lack of support from their traditional lenders and have no access to refinance.  

The Debt Management Guidance from the OFT due in March 2012 has been eagerly awaited – although we have been getting snippets over the last couple of years by way of consultation document – and ought to bring consumer and lender confidence back into this marketplace. It will be interesting to see how the guidance is actually monitored and policed moving forward, but it is definitely a giant step in the right direction so long as it is unilaterally supported by all stakeholders.

You are a licensed insolvency practitioner yourself, how do you think this helps you in your role within the organisation?

It would be difficult to represent the association without the experience of working for many years in the debt solution arena – and also being experienced in both personal and corporate insolvency processes both of which I am fortunate to be. I am a grass roots practitioner, in that I personally deal with all of my clients and understand their issues and concerns, and their aims and aspirations. A debt solution is a stepping stone from a bad place to a good one, and it is important to recognise that when the solution has served its purpose, that our members will have retained their loyal and long-standing customer relationships into the future – strengthened in the knowledge that their advisors supported them through thick and thin.

What kind of dialogue does APDSI have with other industry trade bodies, notably DEMSA and DRF?

We regularly interact with the professional trade bodies, and have established good working relationships with the two you have mentioned. The OFT have highlighted that membership of recognised and reputable trade bodies is vitally important in the granting of new and renewal of old consumer credit licences, and the ability to interact with a vast area of the debt community is very beneficial for both the board and our members.

Something that has come to our attention recently is the ongoing debate surrounding commercial debt management companies and those that provide free-to-consumer advice. How does APDSI encourage more communication between the two sectors?

APDSI encourages its members to know about the full spectrum of debt solutions, and we ensure that our members are correctly educated on the differences between the commercial and free sectors in order that they are able to signpost solutions of choice. The fee vs. free debate should not detract from consumers or small business owners need to obtain often immediate debt relief – and there is much good work done in both sectors.

I definitely believe that 2012 will see more individuals seeking advice on debt management issues, and already I am seeing a greater number of people who are leaving it until the last minute before admitting that they need help – often when bankruptcy proceedings have been commenced against them. Creditors seem to be wanting to assist with brokering a solution as well, so it may be that we see less formal insolvencies and perhaps more informal deals done at an earlier stage directly with creditors or using an informal debt management solution. As debt professionals we would always rather a client was able to work through their difficulties directly with sympathetic and commercial lenders, but there will always be cases where this is not possible, and this is where APDSI hopes to assist its members to facilitate their clients in finding an appropriate solution – without being concerned about falling foul of their own compliance and regulatory issues, or being seen to give debt advice where they are not authorised to do so.

What is the single biggest issue the association is concerned with at the moment?

The association is primarily concerned with growing its membership, and promoting its practice across the full debt industry spectrum. We intend to be at the forefront of representing financial intermediaries and promoting the very good work that they continue to perform for their clients, in today’s economically challenged marketplace.

What’s the best thing about your involvement with APDSI?