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.