THRIVE Teesside

Church Action on Poverty (CAP) and Oxfam first started working in Thornaby, Stockton-on-Tees, in November 2004. Thrive Teesside was created in January 2007, and is now an award-winning, independent organisation, working in partnership with CAP.

Thrive aim to get the voice of people on the margins of society directly to decision-makers, and effect real transformative change in Teesside. They work to build the economic and social resilience of local households and communities. Greg Brown, Lead Organiser of Thrive Teesside Projects are focussed across Middlesbrough and Stockton, and include Ragworth, Thornaby, Newtown, North Ormesby and Brambles Farm, areas Durham University have teamed up with Thrive which rank amongst the top ten per cent most Teesside to research fuel poverty, and further deprived nationally. understand the impact of debt and how to fight it. Thrive Teesside has been nationally recognised; one The region’s traditional political and social networks of their members won the Sheila McKechnie have been hit hard by the decline in heavy industry, Foundation Take Action 2011 award for her and an increase in unemployment. campaigning work.

Thrive Teesside’s work is based on two approaches; Thrive Teesside aim to build on their success, by building relationships with the most excluded develop more leaders from the community, and households, they identify the issues that keep them create a truly sustainable future for the organisation. trapped in poverty.

In addition, broad-based community organising gives people skills and confidence, enabling them to work together to call for change.

Thrive Teesside has been unique in getting debt customers not just to manage their finances, but also to tackle the companies which contribute to the problem. Thrive Teesside Thornaby Methodist Church, Stanstead Way Through tough negotiations and campaigning work, Thornaby TS17 9DZ Thrive Teesside have enabled a group of women from marginalised, low-income households to Telephone: 01642 769 570 fundamentally change the practices of a sector Email: [email protected] which in 2011 made profits of over £45 million. Web: www.thrive-teesside.org.uk Facebook: facebook.com/thrivestockton Their achievement in persuading the country’s three Twitter: @ThriveTeesside biggest high interest, hire purchase companies to sign up to a consumer charter has helped almost 325,000 customers across the country.

Through their ground-breaking partnership with the Centre for Responsible Credit, Thrive Teesside continue to negotiate with the sector for lower interest rates and better credit sharing practices. High-interest Lending

“Buy As You View have actually lowered their interest rates. They’ve also started the ball rolling about sharing information on credit ratings. It’s had a knock-on effect, and the others have joined in. So it is working.”

In 2010, the Thrive community group, angry at How much does it cost? the way high interest, hire purchase companies Many of the goods that the RTO sector sell are priced high were forcing many local people into debt to buy even before the interest kicks in. Add on hidden extras and basic goods, decided to take action. interest rates of up to 50 per cent, and RTO customers end up paying almost three times the retail cost – or more. Since then, their award-winning campaign has persuaded the sector to make significant Acer Gold 15” laptop Panasonic 32" LED TV improvements to the way they do business, Currys.co.uk = £409.90 Amazon.co.uk = £380 improving the lives of 325,000 low-income Brighthouse = £1,142.96 PerfectHome = £778.44 customers. [£579.64 + Interest + Optional [£541.99 + interest (156 Service Cover (104 payments payments of £4.99)] Bright House, Buy As You View and Perfect Home of £10.99)] made profits of around £45 million last year; but Nevada leather sofa charge almost double high street prices and interest Beko washing machine furnituredirectltd = £320 rates of up to fifty per cent for furniture and basic AppliancesOnline = £250 PerfectHome = £1,393.60 goods like washing machines and TVs. BuyAsYouView = £661.44 [£870.99 + interest (208 [£379.99 + Interest (156 weekly payments of £6.70)] Despite these high costs, the companies target payments of £4.24)] low-income households who are dependent on benefits, already in debt or struggling for cash. (Source: Brighthouse, PerfectHome, Buy As You View) The Office of Fair Trading states that more than a third of customers who use these ‘rent-to-own’ (RTO) outlets are dependent on the sector for credit. BBC North East made a documentary about the campaign, and The Sunday People newspaper Bad credit histories mean that many of their interviewed local people about their debt experiences. customers are often unable to access bank loans, credit cards, or even bank accounts, and have The hard work paid off. Since the first meeting in nowhere else to go to buy essential goods. May 2011, Thrive have managed to get all three companies to sign up to an improved customer Thrive, in partnership with Church Action on charter which commits them to limit their default Poverty, activated hundreds of people to send charges, refer debt-ridden customers to emails to the chief executives of the three independent advisers, ensure that their goods are companies, demanding that they lower their costs competitively priced, and better handle complaints. and improve their practices. Buy as You View have even lowered their interest The group arranged a series of meetings in London, rates; instead of a 49.9 per cent flat rate, regular and invited Bright House, Buy As You View and payers now see their rates drop to 39.9 per cent, Perfect Home, as well as politicians, the Office of while those who use direct debits pay 29.9 per cent. Fair Trading, and the Citizens Advice Bureau. Thrive’s success has been widely recognised. In 2011, They teamed up with the Centre for Responsible they won the Voluntary Organisations’ Network Credit to help them during the negotiations, and North East award for best campaign. They are now secured funding for the campaign from the Friends working to try to persuade the rest of the RTO Provident Foundation. sector to sign up to the charter. They also want companies to start sharing credit data, enabling Thrive created a hard-hitting YouTube video, Rip Off customers to access lower interest, mainstream, TV, which satirised the sector’s practices, and forms of credit. protested outside branches of those companies who had refused to come to the negotiations. The campaign continues. DONNA ALLISON, MONEY MENTOR

Mum-of-five Donna Allison, 27, of Thornaby, is a member of Thrive. Taking out doorstep loans and using buy-as-you-rent companies had left her with large debts. But with Thrive’s help, Donna has now managed to pay off most of her loans.

Donna is now a money mentor for the Thornaby community.

“Everyone I know has doorstep lenders – family, friends. They also use Buy As You View and Perfect Homes. You don’t have the money to save when you’ve got children or you’re on benefits so you go to these places. But then you’re paying a thousand pounds for a second-hand washer.

“Our fridge freezer is reconditioned. But it will still cost us just under a grand.

“I had bailiffs coming to the door, and red letters all “It was with Thrive that I built up the confidence and the time. I was scared to answer the phone. I was managed to slowly get out of debt. I would take out getting depressed. They threatened to come and take loans to get by for the kids for Christmas; last year my goods from me if I didn’t pay. I was frightened. was my first debt-free Christmas. I’ve nearly paid all my loan sharks off. “You’d get loan sharks in my neighbourhood coming to your door. You fall into it. They seem to target “They keep asking me if I would like another loan. Christmas time, when they know people struggle. Now I’m strong, and say no. I've started looking on So you’re going to take that money just to give your second-hand pages on Facebook, and on Freecycle. kids a good Christmas. I’d say on a hundred pounds If I need something, before I’d be the type to just go loan, you're paying about £190 back, if not more. out and spend, and not think about where the money is going.

“I feel much better in myself. I’ve got more money to “I know that I can make a spend on the children. I’m saving. And all the money that I’ve given to those loan sharks I’m putting into a change because I’ve got tin. I’m not adding onto my debt. The money I get is the experience. And I my own money, it’s not a loan shark’s. It’s my own. think people tend to “I’ve wanted to give something back, and now I’m doing a money mentoring scheme. I go to peoples’ listen more when they houses to tell them my experience. How I’ve managed to get myself out of debt with the help of know you’ve been Thrive. And hopefully help others. through it.” “I know that I can make a change because I’ve got the experience. I think people tend to listen more when they know you've been through it. It’s good to give something positive back and help others.” G GRAHAM CLARKE, CHIEF EXECUTIVE OF BUY AS YOU VIEW

Graham Clarke discusses why he decided to engage with Thrive; and why other companies have nothing to fear from community organising.

“What’s worked has been people getting round the table and talking. I think there needs to be willingness on both sides of the table to do something. It’s amazing how perceptions change our view of things.

“In April 2010, I started getting some emails. As a human being, no matter how resilient and tough you are, it hurts when someone has a pot shot at you.

“I’ve always been a firm believer in communication. Thrive were always going to get a receptive response; it was a little bit prickly at first. They made a spoof film, which looking back I have to say was quite funny; but it was all designed to provoke.

“They threw a lot of rocks at me. The danger is, do you just sit back and not respond? Certainly in my corporate life that was always seen as the best way to approach. I don't buy that. I was able to show that a lot of the things Thrive were frustrated with we were in the process of changing. “We are absolutely

“The model currently works like insurance; good prepared to make more payers subsidise bad payers. You pay the same changes in the future.” whether you’re a bad customer, or you’ve been a customer for 40 years. “One of the frustrations from both sides of the table “I want to be able to reward good payers. That isn’t is how difficult that is. There’s no specific legislation some soft hearted approach; this is business. I want to allow it to happen – the OFT have only made to keep good customers. As a consequence of that recommendations and guidelines. But it has made we are one of the first companies in the sector to the OFT see there that there is a groundswell both offer differential pricing. My existing customers pay from consumers and businesses. a lower APR than new customers. We still have a high APR; but it’s a high cost to collect. The company “It is a piece of PR. You’d be a liar to say otherwise. never used to do direct debits. But that’s not been the driver. We’ve seen that this has been good for us; it’s helped us improve. “The Office of Fair Trading (OFT) had made some It’s changed the way we do things. recommendations about data sharing; but from that recommendation there was very little that had been “I would say to community organisers; try a gentle done. Coming together with Thrive was a catalyst to approach first. It’s worth doing creative approaches get round the table and start moving towards that. like Thrive. Be tenacious. And I would say to the businesses; engage. There is nothing to lose. “We are now designing a consumer charter that we are signing up to and we are all in the process of “We are absolutely prepared to make more changes working out how data can be shared. in the future.” G MAUREEN HAGAN, THRIVE MEMBER

In 2008, grandmother-of-ten Maureen, 58, left her partner and moved into unfurnished private accommodation. As a full-time guardian for two teenage granddaughters, she had no savings and was reliant on benefits.

Although she was able to find some second-hand furniture, Maureen had to turn to Perfect Home and Buy as You View to purchase a new sofa, bed, washer and cooker.

“At the beginning I joined Thrive to get me out of four walls. I just carried on because it was something to do. Then we started talking about the bad boys of doorstep lending.

“But where else do you go when you’ve got no money to buy the goods with? There’s nowhere else “The common man does for a person with a bad credit rating or no credit rating to go. Because they won't have you. have a right and if they speak loud enough “My main issue was to give us a credit rating. And they've got to publicise that rating to other they've got to be heard.” companies to know that we are good payers.

“First of all we contacted a multi-million pound “The second time we went, Brighthouse wasn’t there. company to come and listen to us. We never So we decided that we would petition Brighthouse. thought they would. But they did. And that was Buy We stood outside the Stockton store with As You View. Graham Clarke (Chief Executive) came cardboard cut-outs of microwaves, and I stood in a from Wales over to Teesside to meet with us. I just cardboard cut-out of a washing machine. And next couldn't believe that somebody would want to time they’ve come to the table. come and meet normal people. But he did. “When I walked out, the third time we went to “We were going down to London, to Dean House at London, I was like a bouncy ball. Because people the back of Westminster Cathedral, which was a were listening to me. A nana, a mother, a normal place I’d never thought I’d see. There was Ministers, everyday person. Not somebody who’s got airs and there was the top man of the Citizens Advice graces. I couldn’t stop talking about it, it was so Bureau. PerfectHome was there. We just couldn’t get electrifying to think that I was actually helping, Brighthouse to the table. I thought, I'm just a spare not just me, but other people in the same situation cog in this wheel. And then people started asking me I’m in. questions. I was absolutely shaking that people like this were asking me questions. “I’m trying to help those coming up behind me. If it’s just one person then I’ve achieved a lifetime’s ambition. Then they’re not going to be in debt like “People were listening to I’ve been in debt. “Buy As You View have actually lowered their me. A nana, a mother, a interest rates. They’ve also started the ball rolling normal everyday person. about sharing information on credit ratings. It’s all been a knock-on effect where the others have joined Not somebody who’s got in. So it is working. It does work. The common man does have a right and if they speak loud enough airs and graces. It was they’ve got to be heard. electrifying.” “If I’d have realised that doing this sort of thing would have empowered me and others, then I would have done it a long time ago.” G Asylum Seeker Housing

“I thought I was voiceless. And I felt disempowered. So when I met Thrive it really made a difference. Now I can take anything. I can take that mountain. I feel so strong; so, so strong.”

As part of the Government’s policy of dispersing Although DASUK has yet to see concrete asylum seekers across the UK, the North East has improvements to the housing situation, negotiations seen a large increase in the number of asylum have been initiated, and are ongoing. seekers. Over 3,300 had moved to the area by the end of 2006. In summer last year, Stockton was home to almost a quarter of the region’s asylum seekers.

In 2010, Thrive started receiving allegations that asylum seekers were being mistreated by their landlord.

Tenants alleged that houses had inadequate cooking and sleeping facilities; they they were being intimidated and told they would be reported to the UK Border Agency (UKBA) if they complained; and that the landlord was visiting houses without the agreed 24 hours’ notice. Different faith and cultural needs were reportedly being ignored.

With Thrive’s help, Diaspora Action and Support United Kingdom (DASUK) was formed by two Zimbabwean asylum seekers to address the issues.

In November 2010, DASUK organised a meeting, KUDZAI RUSERE, CO-FOUNDER, DIASPORA ACTION which was attended by over 100 asylum seekers and AND SUPPORT UNITED KINGDOM (DASUK) members of Stockton’s voluntary and community sector, as well as the town’s mayor. Asylum seekers told their stories; one former local councillor was so Kudzai Rusere, 46, is a Zimbabwean national. moved, she agreed to become a partner and mentor for DASUK. The former Harare Polytechnic administrator, a leading light of the then anti-Mugabe Movement Together with their new supporters, DASUK for Democratic Change (MDC), fled her Harare contacted UKBA, who had contracted G4S to home in 2002 after receiving death threats, provide asylum seeker services for the area, and leaving her two daughters behind. She has not Jomast, who had been subcontracted by G4S to seen them since. provide housing, to ask them to attend a meeting to discuss DASUK’s concerns. She is chairperson of the Middlesbrough branch of the MDC. The meeting was held in April 2011; UKBA attended, as did Migrant Helpline, a G4S partner, and the “The housing provider wasn't actually adhering to Regional Refugee Forum. the contract or to the obligations of the contract; so he took advantage of the people to Since then, DASUK have held several private manipulate them. meetings with UKBA and G4S. They have been in communication with Jomast. DASUK representatives “They tried to threaten them and dehumanise now also attend the local multi-agency forum on them, telling them that they should be grateful asylum issues. they’ve got a roof over their head because they’re coming from Africa. “It has helped me build my confidence, and to really realise the potential that’s in me. Power is the ability to cause changes, wherever you are; that’s power.”

“Seven women were given four pots to cook in. These women have got children. How do you use four pots amongst seven women? It’s not feasible. They started intimidating people when they complained. It was terrible, to be honest with you.

“The journey to having the meeting was a bit challenging. With community organising, you’ve got to get it from the community. And make sure that “Thrive doesn’t actually do anything for you; they Richard Mahlahla: the community can present their issues. empower you and they give you the direction and Co-Founder, Diaspora the information. Action And Support “Eventually we built up the momentum with the United Kingdom help of Thrive. And when the big man knows he’s “Thrive really helped us. I thought I was voiceless. going to be attacked, he tries to divide and rule. He And I felt disempowered. So when I met Thrive it said, let’s negotiate now, last minute, just a day or really made a difference. Now I can take anything. two before the big meeting. Now I can take that mountain. I feel so strong, so, so strong. “But there was nothing to negotiate about. They had already refused three times to come to the meeting. “It has helped me to build my confidence, and to really realise the potential that's in me. The current “There were about forty to fifty asylum seekers system, it sort of takes the power from you. But there. We had to represent our cases and our power is the ability to cause changes, wherever you experiences. We had testimonies from the people are; that’s power. So I feel very powerful now, to who had been abused by the system and all the be honest.” G problems that we’d encountered.

“Soon after the meeting, they went round doing things that they used not to do; painting and buying SUZANNE FLETCHER, MENTOR & PARTNER, equipment for the houses. They sort of changed, DASUK although not to the great extent that we wanted.

“Now they know the problems that we’ve had and I Suzanne Fletcher MBE, 67, is a respected former think it will be taken on board. local councillor in Stockton. After attending a DASUK-organised event in November 2010, and hearing co-founder Richard Mahlahla speak, “They tried to threaten she vowed to help the group. them and dehumanise Since then she has supported DASUK in them, telling them that developing documentation, negotiation and communication skills. they should be grateful “I was shocked. I’ve heard lots of things in my life, they’ve got a roof over but to think this was actually happening in my own community, I sat there with my mouth open. their head because they’re My reaction was that something’s got to be done coming from Africa.” and I’m going to help to do it. DASUK mentor Suzanne Fletcher with Richard Mahlahla

“I’ve learnt what I’ve always known – that the asylum “In ten or twenty years’ seekers have got so much about them, such huge dignity. All they’ve ever asked for is to be treated time, some of these with dignity and respect. The more I’ve got to know people we’ve been them the more I’ve come to respect who they are. working with will be “Everybody moving forward together is a really important thing. I thought I would have had this leading the whole sorted out by the end of December last year. You’re taking people with you and you walk slower community, not just their if everybody is going at the same pace. own. And I think it will “We can use community organising for everything when these good people are settled citizens and be different and better they’ve got jobs and are really part of the community. because of that.” They know how to organise, they know how to put the case, they know the power of personal testimony, they know how to use people power. “We had a meeting with people from DASUK. They were wonderful people, and brave, to be talking “In ten or twenty years’ time, some of these about it when their own position was so insecure in people we’ve been working with will be leading the this country. whole community, not just their own community. And I think it will be different and better because “I think there’s two strands: one is helping them of that.” G tease out what the issues are you can do something about, and what you can’t. The other strand is how we relate to the different organisations that we approach.

“When we were organising the meeting that we had in April, we had a number of rehearsals. We spent quite some time working out who was going to say what.

“It’s made what I’ve always wanted to do – to work with and for people – much more possible. Because it was a completely different, non-political setting. Which made it much better.