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Tess Pendle Head of My Home Finance

Tess Pendle, the Head of My Home Finance, responds to concerns of members regarding the credit gap, debt spirals, rent arrears, and health/social issues. This not-for-profit social business offers small-sum lending and a long-term financial plan to address these issues sustainably.

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Tess Pendle Head of My Home Finance

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  1. Tess Pendle Head of My Home Finance

  2. Why? • Response to members concerns • Needs of vulnerable tenants

  3. The Credit Gap Credit Unions Banks Doorstep/Illegal

  4. Member concerns • Debt spirals • Rent arrears • Health/social issues

  5. Federation Response • Solvent & sustainable social business • Small sum (“micro”) lending • Long-term financial plan

  6. Not for Profit “a social business...You are committed to solving a social problem with no intention of making personal financial gains. You cover all costs through your operations so that your business is self-sustaining” Muhammad Yunus, May 2010 Grameen Bank founder & Nobel Peace Prize Winner, 2006

  7. Partners • HAs • DWP GF • Wates Giving • RBS • ELM

  8. Governance • Independent CLG • Federation Founder Member • Board and Sounding Board

  9. Launch Launch

  10. Pilot Wolverhampton Tamworth Walsall Erdington Dudley Birmingham City Worcester Northfield Hereford Coventry 38 Jobs

  11. Services • Credit • Basic bank accounts • Savings accounts • Money advice

  12. The cost of credit today

  13. Customer Relations • Building Credit Scoring • Flexibility in Payments • Personal Contact • Early repayment no penalties • Arrears collection

  14. Process • Initial contact • Appointment • Interview • Decision • Payment • (Money advice)

  15. Roll Out

  16. Roll out • North East/West • Alternative delivery models • Closer HA and stakeholder involvement

  17. So far… • Loans: 4,007 • Average loan £366 • Aggregate lending £1.2 million

  18. Savings Accounts 46%

  19. Demographics gender

  20. Demographics - age

  21. Demographics - ethnicity

  22. Analysis/Impact Typical MHF customer: • Borrows around £366 • Currently repays £417 Better off by £249/year (against HC)

  23. Analysis/Impact Based on average loan £366 if borrowing taken out at £82/£100: Total annual savings for clients roughly £996,000

  24. Thank you tess.pendle@housing.org.uk

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