Amplifi & StepChange. A mixed messages report.

The report aims to start an open dialogue about how the advice sector and creditor organisations can work together to focus on earlier and better identification of financial difficulty and vulnerability, improve the effectiveness of communications and ultimately improve outcomes for customers.

In summary, through the focus groups and research designed by Amplified Global we find that, unsurprisingly, better communications result in better outcomes for clients. Proactive messaging that focuses on helping people to resolve their situation is more likely to trigger positive action in consumers.

We find that some of the required language in these communications by the Consumer Credit Act can actually disempower rather than help people. Whilst set out to protect consumers, this legalistic language can often overwhelm consumers and lead them to disengage, which consequently can result in poorer customer outcomes. 

We welcome the announcement of the reform of the Consumer Credit Act and the opportunity it presents to address this issue, and together with StepChange, we’d like to start a discussion both with creditors and Treasury about what this could look like.

This report is part one of a two-part research project – part one focuses on communications from creditors and from StepChange. We expect to follow up with part two later this year. This will be focused on how Amplified Global is working with StepChange to help them improve their communications, particularly the Personal Action Plan.