Lee Schofield, Broker Manager at Ashley Park Debt Solutions

myintroducer.com catches up with Lee Schofield, Broker Manager at Ashley Park Debt Solutions- the personal debt solutions provider.

Related topics:  In The Spotlight
Millie Dyson
8th June 2012
In The Spotlight
myi: Last year the industry witnessed an encouraging trend in falling debt but this seems to have stalled somewhat in 2012. Why do you think this is?

2011 saw criteria relaxed by lenders; it also saw the continuation of low rates that did nothing to encourage saving. Many people chose to use any spare money to chip away at existing debts. 
What we appear to be seeing this year is that things are getting tighter for consumers. Continued utility price hikes, coupled with the first wave of SVR increases are stretching household budgets more and more. As a result, people are looking to borrow money to help meet monthly commitments.

Using products such as short term and payday loans with high APRs, which in many instances act only as a temporary measure.  Also stories of job losses and the euro zone crisis are providing a negative backdrop to the situation.

myi: New rules from the FSA coming in to place next year could mean an end to interest-only loans. How do think this will affect the Debt Management industry?
 
I suppose from a debt management perspective, I should be saying that interest-only needs to end. The majority of our clients who have interest-only mortgages have no way of repaying the capital sum at the end of the term, other than to sell their house- which using today’s current market state as an example could leave many with a shortfall, no means to settle this and also with them looking for a new home!

However, I firmly believe that there is a place for the interest-only product and when used properly it may be the best option for a client. I feel that rather than requiring 50% deposits or completely banning the product, the introduction of stronger checks and more of a joint approach between lender and borrower towards a repayment vehicle would allow for this product to remain.

I also think a measure of common sense needs to remain. A Graduate first-time-buyer may want to keep repayments low initially but with the intention of switching to a repayment mortgage as their career progresses and their income increases.

myi: What do you feel is Ashley Park's biggest achievement to date?

Looking into my crystal ball I think our biggest achievements are still to come! I see us being named myintroducer.com`s Debt Management Provider of the year 2013 and later this year we will be re-branding and re-launching our Insolvency Company (watch this space for a very exciting competition).
 
myi: How do you differ from your competition?

Ashley Park shares common directors with Norton Finance and I feel this experience of the personal finance sector from a compliance perspective is priceless in the debt management industry, which historically has had a low standard of regulation. Self regulation is key to ensuring we are still here for many years to come. 

Also, our approach to arrears on priority debts such as secured loan, mortgage and utility arrears, where we will incorporate these accounts into a management plan and prioritise their settlement above unsecured debts, emphasises our commitment to ensuring a client remains in their family home.

myi: What are your predictions for the future of the DM sector?

I would welcome a regulated DMP somewhere between the Scottish Debt Arrangement Scheme and a traditional debt management plan. I live in hope that the free sector and press will take note of the fact that we as an industry have cleaned up our act and that we do provide a much needed service.

I also feel that when more lenders increase their SVR, there will be a new area of society that may have so far escaped the “credit crunch” who could potentially find themselves in poverty overnight. Their first port of call would probably be the person that assisted them with their mortgage and it is very important that they are aware of what products are out there and that they are able to assist them in the same way that they did with their mortgage.  

myi: If you weren’t in the financial services industry what would you be doing?

The dream through my childhood was always to play for Sheffield United but now I would love to be putting my extensive collection of  60`s 70`s and 80s soul music to use and be a superstar DJ in the vein of Norman Jay (readers, ask your parents!).


Ashley Park are part of the Norton Finance Group of companies and a member of Trade Body The Debt Resolution Forum. They provide personal debt solutions such as Debt Management Plans and IVAs, as well as advice on energy switching and managed bank accounts.

Lee is a keen follower of most sports, Is obsessed with Oasis and is a secret X-Factor addict.

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