Melanie Taylor of DEMSA

We sat down with Melanie Taylor of DEMSA to find out more about the association, its growth over the next year and its ultimate vision for the industry...

1) How long has DEMSA been running?

DEMSA was founded in 2000 and its Code of Conduct was granted Approved Code Status by the OFT in 2009. We now have 17 members which collectively administer some 205,000 debt management plans and 52,000 IVAs for clients. DEMSA member firms now comprise 80% of all private sector DMPs.

2) What is your role within the association?

I am Director of External Affairs for DEMSA. I represent DEMSA to stakeholders including the media, creditors, industry bodies, other advice providers, MPs and Government. 

3) How did you get involved with DEMSA – what did you do before?

In fact I still work for Think Money; my role at DEMSA is a two-day-a-week secondment. I’ve worked at Think Money for almost twenty years. At the very beginning my role was with our DMP provider, Gregory Pennington, where I was a debt adviser (and one of only five staff at the time). My current job title is head of corporate relations.

4) How do you see the organisation changing or growing over the next year?

DEMSA will continue to grow – it’s nice to see that we have a steady stream of firms looking to join. Over the next twelve months I expect to see a lot of change in the sector. DEMSA is already working closely with the OFT, the Money Advice Service and the Insolvency Service and is helping to shape the future of debt advice across the UK. 

5) What is DEMSA’s vision for the debt industry?

Our vision is for a sector where no matter who a client contacts for debt advice they are certain of getting high quality advice and service. Ideally, clients would be making informed decisions based on published data on success rates and outcomes.

6) What powers does the association have to clamp down on a member who is seen to misbehave?

DEMSA’s Code of Conduct is actually tighter than the OFT’s own debt management guidance. It is monitored by regular audits of members, customer satisfaction surveys and mystery shopping of members.

If a member is believed to have broken the Code then DEMSA has an independent Compliance and Disciplinary Panel, chaired by a former high court judge. The panel has the power to fine members, expel them and name and shame.
 

7) You work quite closely with the OFT, could you tell us a bit about the relationship between the two of you?

We have a constructive relationship with the OFT. We meet formally once a quarter but get together informally too. Its very much a two way relationship – we can let them know of trends we have seen in the sector, and report bad behaviour we have observed, as well as suggesting areas where, for example, they might need to tighten their Guidance.

8) Do you have a lot of firms applying for membership – what is the success rate with regard to those being granted entry to DEMSA?

Most firms that apply to join are accepted for membership – but some take longer than others to meet required standards. To be accepted as a member firms must pass a full audit to ensure that they meet the terms of our Code. This is extremely rigorous and even firms that already have high standards typically find that there are areas they need to improve. 

9) How do you think the industry has changed in the aftermath of the economic crisis?

Contrary to what you sometimes read in the media the economic crisis has not led to an explosion of people with debt problems. In fact, if anything, the number of people seeking debt advice is flat or slightly down. Whilst there is no doubt that consumers across the UK are feeling the pinch, and unemployment is on the rise, low interest rates and the much reduced availability of most type of credit have helped. 

10) What’s the best thing about your job?

Ultimately we make our clients’ lives better. People come to us, often in great distress, not sleeping or even being made unwell by the stress of being in debt. In a short period of time we can often “give them their lives” back, by helping them to better manage their finances, improve their budgeting skills so they can pay their priority bills, feed their families and work towards repaying their unsecured debts. Even better is the hundreds of clients who leave us each month – debt free. I am very proud of the work we do for our clients.