1. CODE OF CONDUCT
   
2. COMPLAINTS HANDLING AND INDEPENDENT REDRESS ISSUES
   
3. COMPLIANCE AND DISCIPLINARY ISSUES
   
4. MONITORING OF CODE

R. WHARTON

CODE ADMINISTRATOR

Throughout 2006 work has continued to ensure that the DEMSA Code of Conduct satisfies all the requirements of the Office of Fair Trading under the Consumer Codes Approval scheme and, following the granting of Stage One approval in 2005, further work has been undertaken to ensure that all the necessary steps have been taken to move to full Stage Two approval.

At the end of 2006 a detailed submission, including evidence from the continued close monitoring of the Code, was supplied to the OFT to justify the granting of full approval and it is envisaged that the full approval will be in place by mid 2007.

The various consumer bodies, with whom DEMSA has worked in drawing up and implementing the Code, have been kept up to date with progress and will be consulted when the Code is reviewed or amended.

The major lenders, with whom debt managers conduct negotiations on behalf of clients, are aware of the existence of DEMSA and the Code of Conduct and of the consumer protection that this gives to their clients who have financial difficulties and who need help.

The Code of Conduct is intended to be dynamic and to reflect fully up to date legislation, practices, and consumer concerns and issues. A commitment has been given that a full and comprehensive review of the Code will take place by a panel, which is independent of the debt management industry, no later than June 2008, and on a regular basis thereafter. This will not, of course, inhibit any changes being made to the Code and Procedures as and when they become necessary due to the evolving marketplace.

COMPLAINTS HANDLED BY DEMSA

During 2006 DEMSA received 11 complaints from consumers.

The 11 cases are as follows:

Service Issues                                                             -            9 complaints

Issues regarding withdrawal from a programme        -            2 complaints

6 of the complaints were not justified or were resolved by DEMSA intervention and 2 complaints, whilst of concern to the consumer, were as a result of the involvement of other parties who made errors and were not covered by the Code. However in both instances, representations were made by DEMSA to the parties involved and in one instance a bank refund of £740 was obtained for the consumer.

Of the 3 justified complaints, all were as a result of administrative issues, being in one case an incorrect reference quoted on payments, thus delaying receipt, and in another an incorrect amount being remitted. Both these problems were satisfactorily resolved.

There was just 1 case where it was considered that a breach of the Code may have taken place, where an administrative problem resulted in payment not being made. The matter was quickly corrected and a full refund made by the DEMSA member of all payments made in recompense.

Refunds of fees/payments totalling £1,938 were made and a refund of £740 from a bank involved obtained.

The trend of complaints against DEMSA members over the last 4 years is summarised below:

In the event of a claim not being resolved to the satisfaction of the consumer, DEMSA has established a bespoke Arbitration Scheme, run by the CIArb, which is fully binding on all members


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