ANNUAL REPORT FOR YEAR ENDED 31 DECEMBER 2007

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

COMPLIANCE AND DISCIPLINARY ISSUES

Compliance and Disciplinary Procedures are in place, which give strength to the Code by their structured, binding, independent approach.

An Independent panel is in place to consider any actual or potential breaches of the Code and to decide upon what disciplinary action needs to be taken.

The panel is convened on notice of a potential breach of the Code from any of the following sources:

1. A consumer complaint
   
   
2. As a result of a Compliance Audit
   
   
3. As a result of information received from any other form of monitoring of the Code undertaken by DEMSA, which includes Consumer Satisfaction Surveys.
   
   
4. A complaint from another member
   
   
5. A complaint from any other source, including lenders and other consumer bodies.

MONITORING OF THE CODE

Monitoring of the adherence of members to the Code of Conduct  is an important aspect, ensuring that the effectiveness of the Code is properly tested and shown to be sufficiently robust to ensure the required level of consumer protection.

Monitoring takes place by:

WEB SWEEPS AND DESK TOP ANALYSIS

On a regular basis close checks are carried out to ensure that all members’ websites, advertising and promotional literature is fully compliant with the Code and is consistent across all areas of the media.

Audits are carried out on an annual basis, in accordance with a pre-defined agenda which covers the areas covered by the Code including:

• Marketing, Promotion and Advertising
• Pre-Contract Activity
• Contract Terms
• Payments and Money handling
• Contact with Consumer and Advice
• Core Criteria relating to Consumer Codes Approval Scheme.

In addition a Customer Interface Audit is conducted which covers:

• Understanding of Debt  Management Programme
• Adequacy of Information Provided
• Costs and Estimates
• High Pressure Selling
• Cancellation Rights
• Awareness of DEMSA Code of Conduct
• IVA Issue

In the series of audits reported in 2007 the overall conclusion was that all DEMSA members are compliant with the DEMSA Code of Conduct and no serious transgressions were noted, with the single exception of one regulatory/licensing issue.

CONSUMER SATISFACTION SURVEY

The successful Consumer Satisfaction Survey  has continued during 2007, with surveys being sent out on a regular, monthly, basis with responses being returned directly to DEMSA for collation.

A weighted scoring system is in place, which gives priority to fundamental issues covered by the CSS and this gives scoring ratings of:

• Excellent
  
• Good
  
• Satisfactory
  
• Below Satisfactory
  
• Poor

CSS SURVEYS ISSUED/RESPONSE RATES

The response rate continues to increase and is considered satisfactory and is above the agreed targeted rate of 20%

A total of 90% gave a rating of Satisfactory or above and this is showing a steady increase over the 3 year period.

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