An Expert System Solution to Mortgage Arrears Problems

This article draws on research into the current level of provision of arrears and debt counselling in building societies, banks and finance houses and concludes that, whilst interest in a consistent and systematic approach to arrears counselling is very positive, progress towards any practical application of Information Technology in the arrears counselling process is slow. In response to this shortfall the article presents a novel approach to arrears counselling through an expert system named Personal Insolvency Strategy Counselling Expert System (PISCES). Work on PISCES at Loughborough University Banking Centre has shown that much of the expertise and knowledge of the experienced arrears counsellor can be captured within a computer-based system. An evaluation of PISCES by interested parties has confirmed that the expert system approach to arrears counselling is valid and that the PISCES system, in particular shows promise.