During 2007, Barclaycard subsidiary FIRSTPLUS introduced a Financial Support Team to help customers facing problems with their debts.

The team deals with accounts before they fall into arrears and customers in financial difficulty can call the team for help before they miss a payment.

The team provides support to customers and advises them on prioritising their debts. Examples of support offered are Term Extensions (extending the term of the customer's loan to reduce the monthly contractual payment on the account), Payment Holidays and Repayment Plans.

The Financial Support Team also calls customers identified by Credit Risk as having a higher chance of falling into arrears (through analysis of the customer's account and other financial circumstances). These calls help educate customers about managing their finances and keeping repayments under control.

In 2007, we reduced our maximum loan-to-value (LTV) ratio at FIRSTPLUS from 125% to 100%.

In July, we introduced our new Arrears Management Policy to help customers in arrears improve their situation and reduce the need for further action. As a result, we have introduced practices such as more flexible payments and extending the term of loans to reduce arrears.