In addition to the information given in the RSR/Credit Action booklet available from RSR, various other options exist for those experiencing financial difficulty.

Normally, the Divisional Officer should be the initial point of contact and can provide guidance on the best source of advice depending on the seriousness of the problem. The Divisional Officer can provide basic help in such matters as the conduct of a bank account and senior UPO staff are well placed to provide advice on personal finances and, in particular, the impact of pay and allowance matters on income. Further advice, including debt counselling, can also be obtained from Naval Personal and Family Service (NPFS) offices and from RM Welfare SNCOs. Free debt advice is also available from many Citizens' Advice Bureaux (CAB) and from Trading Standards in Scotland. Besides these, Banks and Building Societies can also be a useful source of advice and are certainly preferable to seeking loans elsewhere.

Those experiencing difficulties with their personal finances are often reluctant to discuss the problem with their line management or NPFS/RM Welfare in the belief that such disclosure may damage their career and lead to dismissal for financial irresponsibility. Although there are some circumstances associated with security when an individual will have to inform the Navy about his/her problems, referrals to NPFS or RM Welfare will usually be covered by the codes of confidentiality *. (* see BR 8588 Chapter 11)

Families and dependants may also approach NPFS or RM Welfare with the same degree of confidence. A person does not have to leave the Service just because he or she has significant debts. The limited number of discharges for financial irresponsibility that do occur are mainly associated with those who have attempted to hide their difficulties and have refused advice and support. Those who have wisely sought early assistance are much better placed in every respect.

Besides the free advice available from CABs, Money Advice Centres etc, there are also debt management companies advertising in the media (Television advertisements, national and local papers, and Navy News and other Service/MOD magazines) who are offering initial free advice and are willing to negotiate with creditors on behalf of an individual, sometimes for a pre-disclosed fee. In addition, they may offer a loan to clear all the debts or suggest formal, legal solutions.

Before dealing with any commercial firm offering quick loans or insolvency advice, all naval personnel are strongly advised to consult with the Consumer Credit Counselling Service (CCCS) helpline (0800 138 1111) or NPFS/ RM Welfare in confidence. Not everything is as some companies present it. At the very least, personnel should clarify the position with regards to the following points:

• a. Ability to negotiate the freezing of interest payments to creditors.
• b. What happens if a creditor continues with court action/diligence.
• c. Projected completion date of debt repayments.

An indication of a firm's validity is whether or not they have a consumer credit licence for the type of service they are providing. The Office of Fair Trading issues all licences.
The licence categories are:

• A - Consumer Credit
• B - Consumer Hire
• C - Credit Brokerage
• D - Debt Counselling and Debt Adjusting
• E - Debt Collecting
• F - Credit Reference Agency

Any company acting with more than one type of licence (i.e. offering a wide variety of services) should be treated with caution, as there may be a conflict of interest. Likewise, caution should also be given to companies who ask for money at the outset or reschedule debts in excess of 5 years or who are not full or associate members of organisations such as the Money Advice Association, Money Advice Trust, Money Advice Scotland or the Federation of Independent Advice
Centres.

The Naval Service guidance is that anybody with debts concerns should, at the very least, consult with the CCCS helpline (0800 138 1111) before entering into any arrangements.

IF YOU ARE LIVING IN SCOTLAND there are certain differences in Scottish Law relating to debt that you need to be aware of. In particular these relate to Sequestration and Trust Deeds as regulated under the Bankruptcy (Scotland) Act 1985 (as amended) and Diligence which is the part of Scottish Law relating to formal debt enforcement as regulated under the Debtors (Scotland) Act 1987. In addition, with regards to court procedures, in Scotland a Sheriff Court Decree will be issues rather than a County Court Judgement. When calling the HelpLine, it is important that you make it clear that you are calling from Scotland and you will then be given the appropriate advice.

A List of NPFS / RM Welfare Contact addresses is available here to download in PDF Format.