Press Release

NORWAY LOOKS TO LEEDS FOR DEBT SAFETY

July 25, 2005

The Norwegian government is looking at introducing consumer credit counselling, pioneered in the UK by Leeds-based Foundation for Credit Counselling, to help deal with its debt problems.

A delegation from the Norwegian Government, led by Justice Minister, Odd Einar Dørum, is visiting Consumer Credit Counselling Services (CCCS) headquarters on Monday, July 25.

The Norwegians have been impressed by the ability of CCCS to handle the rise in consumer debt resulting from the explosion in credit in the UK since the charity was established in Leeds in 1993.

The CCCS success story was brought to the attention of the Norwegian government after Tore Lende attended the World Symposium on Credit Counselling at Magdalene College, Cambridge last September.

At present, Norway offers no real solution to the problems of debt, other than something akin to bankruptcy, which carries social stigma. This in turn is restricting the development of a modern credit economy in Norway.

CCCS, based on an American initiative, is now the UK's leading debt charity, responsible for managing some £990 million worth of unsecured debt. Last year it helped 180,000 callers, provided in-depth advice sessions for about one third of these and arranged for 40,000 people to repay £78 million to their lenders.

Chairman and founder of CCCS, Malcolm Hurlston, said today: "CCCS was established by Registry Trust and a small group of far-sighted creditors who understood that over-indebtedness is the necessary concomitant of credit and that a safety net was needed for those who got into difficulties.

"If the Norwegian Government can persuade its own creditors to support a similar initiative, this will bring enormous benefits to their economy, to their credit industry and to their consumers. We shall be happy to put our governance, systems and experience at their disposal."

In the first half of 2005 calls to CCCS helplines have increased nationally by more than 50 per cent compared with the same period in 2004 and this increase appears to be accelerating.