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Sharing Best Practices
Sharing Best Practices
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Areas of Focus
Stabilizing Client Base
Aiding Client Success
Community Engagement
Creditor Trends
Sharing Best Practices
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ENGAGE CL IENTS TO “GET THE WORD OUT”
Stabilizing Client Base
4
Sharing Best Practices
Referral Programs
Referral
programs can be
beneficial to the
community, and
your agency.
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Sharing Best Practices
Referral Programs
However,
compensation
referral programs
can be in
violation of many
state and federal
laws
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Sharing Best Practices
Referral Programs
As we have seen,
non-adherence to
state and federal
guidelines can
draw unwanted
attention
Sharing Best Practices
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Successful Referral Programs
Ask clients to refer family members, friends, and
colleagues
Management drives the message
Instilled in agency culture
Consider every touch point as an opportunity to reinforce
messaging
Sharing Best Practices
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Agency Culture Drives Results
Client Base of 10,0000
50
100
150
200
250
50
200
Traditional Agency Re-ferralsEngaged Re-ferral Culture
Traditional Agency
receives .5% Referral
Enrollment Rate (of client
base)
Referral Culture agency can
receive as much as a 2%
Referral Enrollment Rate (of
client base).
Monthly Enrollment
Sharing Best Practices
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Stabilizing Client Base
Attrition (4% Monthly)
Traditional Agency Referrals (.5% Monthly)
Engaged Referral Culture (2% Monthly)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
400
50
200
350
200
Public Outreach & Advertisements
New Clients From Free Referrals
Client Base of 10,000
Sharing Best Practices
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Every Touch Point Possible
Sharing Best Practices
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Every Touch Point Possible
Sharing Best Practices
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Economic Messaging
Addresses current
economic issues
Builds a relationship
of comfort and
guidance
Sharing Best Practices
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Industry Messaging
Educates as to the
dangers of debt
settlement
Offers solutions for
friends, family
members, and
colleagues
Sharing Best Practices
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Congratulatory Messaging
Build positive rapport
Encourages future
referrals
Sharing Best Practices
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Completion Messaging
Congratulates client
on their success
Encourages client to
share success with
others
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Sharing Best Practices
Additional Touch Point Opportunities
There are many
opportunities to
engage clients for
referrals
Client Services interactions
Account correspondence (i.e.
statements, client letters, e-
mail, etc.)
Phone technology
Educational material
Sharing Best Practices
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CREATING A SUCCESSFUL EXPERIENCE
Aiding Client Success
Sharing Best Practices
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First Few Months of Enrollment
Clients can be:
Cautious,
Unsure, and
Fearful
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Sharing Best Practices
The Road to Plan Success
Comprehensive
Budgets
Accurate
Implementation
Set Expectations
Urging Client to
Save
Sharing Best Practices
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Roadblocks to Success
Some Examples:
Poorly Constructed
Budget,
Unclear DMP
Expectations, and
Declined Proposals
Sharing Best Practices
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Budget Construction and Success
Average Length on Program (in Months)
0 5 10 15 20 25 30 35 40
Comprehensive Budget Rudimentary Budget
Based on Cambridge Internal data
16+ Expenses
10 or Less Expenses
Sharing Best Practices
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Basic Budget vs. Comprehensive Budget
HousingUtilitiesAutoLiving ExpencesChildcareInsuranceMedicalEntertainmentMedicalMiscellaneous
DaycareAllowanceSports / HobbiesApp DownloadsBirthday / Holiday GiftsDiapersFormulaApparelBaby FoodChildcare Items Toys / Video GamesTuitionChild Support
Automobile Loan / Lease PaymentAutomobile InsuranceExcise TaxGasolineMaintenance (Scheduled and Unscheduled)
ParkingRegistrationRepairsTolls
Examples of counselor digging into category expenses.
Sharing Best Practices
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“An Ounce of Prevention…
First DMP summary the client
agrees to should not be altered!
Second guess enrollment
Become confused
6% to 14% default on first
payment- range
2% default on first payment –
Cambridge “- is worth a Pound of Cure”
Sharing Best Practices
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Common Proposal Decline Reasons
Creditor Needs Increase
Age of Account
Recent Activity
Account Insurance
Incorrect Client Information
Invalid Account Number(s)
Inaccurate Balances
Misspelled Client Name
“Promo” Plan
Sharing Best Practices
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Accepted Proposals
Average Length on Program (in Months)
0
5
10
15
20
25
30
35
40 38
33
28
All Proposals AcceptedOne Proposal DeniedTwo or More Declined
Based on Cambridge Internal data
Properly implemented plans increase success
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Sharing Best Practices
Setting Expectation
Transparency
and engagement
enhances DMP
success
Full Disclosure
Benefits, and more importantly
Challenges
No room for error (missed payments)
Inability to secure responsible financing
Past due accounts
Reinforce Through Communications
Counselors
Support Staff
Educational and Program Material
Sharing Best Practices
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Managing Past Due Amounts
In 2010, 29.8% of common creditor accounts audited during the fourth month of
enrollment had some level of delinquency status, even though 98% of the
common creditors had all of their benefits in place
Past due amounts on statement cause confusion and uncertainty about plan
effectiveness
Ways accounts can be brought up-to-date
Eligibility for re-age through a DMP
Will be brought current in time
Additional payments to make up past due amounts.
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Sharing Best Practices
Past Due Amounts on Statements
Number
One reason
clients leave
program
Examples of accounts brought
current over time:
Citibank, HSBC, Discover
Examples of accounts not
brought current over time:
Bank of America, Chase,
Capital OneBased on Cambridge Internal data
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Sharing Best Practices
Video Education Program
Cambridge
developing
video campaign
to prepare clients
for DMP
transition
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Sharing Best Practices
Agency Culture: We’re not just a
way out of debt…
Engage clients
to actively
participate
with the
program and
build savings
Sharing Best Practices
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Client Savings Enhance Plan Success
55.6%
71.0% 65.8%54.7%
71.7% 65.5%
85.2%93.3%
77.6%
Clients who Reviewed Budget Clients that Tracked their ExpensesClients who Built Savings
Sharing Best Practices
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FAITH BASED, CREDIT UNIONS, OTHER NON-PROFITS
Community Engagement
Sharing Best Practices
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Council of Churches of Greater Springfield
75 member churches.
50,000 local parishioners.
Our counselors provide:
Foreclosure Intervention, Pre-purchase Education,
Post-purchase Education, Financial Literacy, and
Credit Counseling
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Sharing Best Practices
Faith Based Programs
The faith based
community has been
receptive to debt
relief services
Community has largely lost faith in debt relief
services
Pastors have the faith and trust of parishioners
Pastors routinely council parishioners on
personal finance matters
Most pastors are not aware of credit and
housing counseling services
Organization like the Council of Churches exist
throughout the country
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Sharing Best Practices
Faith Based Outreach
Cambridge held
it’s Hope, Faith,
and Healing
Financial Forum
for clergy and
public officials in
March of 2011
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Sharing Best Practices
Credit Union Collaboration
Cambridge produced
the Credit Union
Partnerships video to
educate Credit Unions
about the benefits of
collaborating with
Credit Counseling
Agencies
Sharing Best Practices
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Mission Overlap
Credit Union Philosophy:
Seven Cooperative Principles.
Open Membership, Democratic Control, Member
Economic, Participation, Autonomy, Education,
Cooperation, and Concern For The Community
These principles work in unison to ensure the best interests of
members are upheld
Sharing Best Practices
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Credit Union Collaboration
Place brochures in branches
Provide pre-purchase counseling education
Facilitate Credit Union financial literacy programs
Provide educational content to members
What other value can we offer?
Sharing Best Practices
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Collaboration and Funding
Although the NFCC participates in a
national venture with the United Way,
there are local opportunities .
Cambridge participates with our local United
Way’s Income Stabilization efforts
Provide expertise into the development of
grant making, public policy/advocacy and
community engagement strategies.
Create linkages between housing,
workforce development, financial
management and basic needs focused on
holistic approaches to service delivery
40
Sharing Best Practices
Are You Listed In Your Local
United Way’s 211 Directory?
2-1-1 is a free
telephone directory,
available
throughout most of
the United States,
offering access to
health and human
services information
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Sharing Best Practices
Employee Involvement
Your employees
may have
relationships with
friends, family, or
through alumni
associations, and
philanthropic
endeavors
Our employees serve on boards and advisor
committees with agencies and initiatives such as:
Habitat for Humanity,
United Way,
Science, Technology, Engineering, Mathematics
(STEM 21),
Junior Achievement,
National Association for the Advancement of
Colored People (NAACP), and
Association of Latino Professionals in Finance and
Accounting (ALPFA)
Sharing Best Practices
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CREDITOR POLICY UPDATES
Trends
Sharing Best Practices
43
Chase CTA
CTA usages varies between 15% to 70%
Average 35%
Chase Review
20 agencies
20 random accounts
Areas of Concern
Household where spouse unfamiliar with debt
Business owners use of credit card to fund operations
High lifestyle expenses
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Sharing Best Practices
New Trends
Creditor
policy
changes
BOA
Proposals declined if agency proposes
more than client paying on their own
Citi – One and Done
If client misses a payment and does
not make it up by next payment, they
are dropped from plan permanently
Consider waiting to send proposals
until qualified payment is received