First Aid for Money Matters

Municipality of Groningen

First Aid for Money matters is to identify arrears as early as possible to prevent debts. The municipality receives notifications from health insurance companies, energy companies, landlords and drinking water companies. After notification, the municipality can help with money matters. These notifications can be made thanks to the Debt Assistance Act.

Last change on 15th of December 2023, at 12:08 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: DPIA
• Status: In use

General information

Theme

Social Security

Begin date

04-2020

Contact information

[e-mail]

Link to publication website

https://gemeente.groningen.nl/eerste-hulp-bij-geldzaken

Link to source registration

https://gemeente.groningen.nl/open-data

Responsible use

Goal and impact

The purpose of the algorithm is early detection. By this we mean that, as a municipality, we want to help our residents as early as possible when payment arrears begin. After all, payment arrears can be a predictor for the presence or emergence of financial problems or (problematic) debts. Many people in debt do not ask for help or do so very late. By catching them in time and offering help, we want to prevent arrears from increasing and developing into a problematic debt situation. It also helps reduce social costs for debt relief and ensures creditors get their money sooner.

The impact of the algorithm itself is not that big. Based on legislation, early detection is a municipal task. The algorithm is an important tool for the municipality. Without the algorithm, everything would have to be done manually, which would take much more time.

Considerations

The municipality receives all kinds of signals from other organisations. These signals need to be processed. An algorithm does this faster and more efficiently than doing it manually. In addition, you can prioritise on urgency and on how to approach them. There is less chance of randomness.

A disadvantage is that the system is sometimes inflexible. Several times, for instance, a home visit can be proposed as the best approach, while several times the resident was not at home. Then the system keeps steering towards that, while another action would be smarter in this specific case. This can be corrected manually, though.

Human intervention

After receiving the signal, an assessment of the signal follows. The municipality checks:

- the resident's registration in the BRP;

- whether debt assistance is already involved with this resident;

- the quality of the signal, e.g. a remarkably low amount or a suspicion of insufficient fulfilment of social collection (proportionality).

The municipality can also make adjustments by adjusting some criteria in the application, such as the number of months of arrears being looked at. Once a list of signals to be picked up has been compiled, it is forwarded to the municipality's implementers who get to work on it. This is done from the RIS Vroeg eropaf application.

Risk management

The municipality processes all data according to the guidelines of the General Data Protection Regulation (GDPR).

The municipality depends on quality and supply from partner organisations. This is well monitored by the municipality.

The municipality adheres to the legal retention periods. The signals and communication about them are viewable for six months. After that, this information cannot be retrieved. If a resident accepts help, this period can be extended by law.

Legal basis

The municipality receives signals and offers support with money problems on the basis of the Municipal Debt Assistance Act and the associated Municipal Debt Assistance Decree. This Act and Decree regulate that people with (imminent) problematic debts can go to municipalities for advice, debt mediation or a debt settlement.

Links to legal bases

• Wet gemeentelijke schuldhulpverlening: https://wetten.overheid.nl/BWBR0031331
• Besluit gemeentelijke schuldhulpverlening: https://wetten.overheid.nl/BWBR0043850

Impact assessment

DPIA

Operations

Data

The municipality receives six types of signals through:

1. arrears paying rent

2. arrears paying drinking water

3. arrears paying health insurance

4. arrears paying electricity

5. arrears paying gas;

6. arrears paying heat.

The municipality receives signals from organisations such as Pandomo, Waterbedrijf Groningen, Zilveren Kruis and Essent. On the municipality's website, we have a list of companies and organisations we work with.

The municipality receives name, address and place of residence details, contact details (email address and phone number), the amount of payment arrears and the number of months of payment arrears from the various organisations. In addition, health insurers also pass on the citizen service number (BSN).

The municipality of Groningen follows the National Covenant on Early Signalling (LCV) of the NVVK.

Links to data sources

• Meer uitleg over de gebruikte gegevens en vroegsignalering:: https://www.nvvk.nl/l/library/download/urn:uuid:1537cc8e-3d06-4e54-acb4-bfbf2a7accb1/230831+module+vroegsignalering+mobiel.pdf
• De lijst met bedrijven en organisaties waar wij mee samenwerken: https://gemeente.groningen.nl/eerste-hulp-bij-geldzaken

Technical design

The municipality of Groningen uses the web application RIS matching. In this application, data are supplied by an organisation in excel or via a csv file. Municipal employees can then see which data suppliers have submitted their data and how many signals are in this file. The municipality determines how matching is done. By default, this is done on the basis of postcode and house number combinations. The programme sorts the list based on the priority set by the municipality (number of signals from different data suppliers, type of arrears, level of arrears) but also on the available capacity.

This determines who is approached and in what way. Age also matters in this respect. For instance, young people are approached first via text message by default.

External provider

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