201504 CM April

CREDIT MANAGEMENT
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THE CICM JOURNAL FOR CONSUMER AND
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CONTENTS
CM
Credit Management magazine for consumer
and commercial credit professionals
APRIL 2015
www.cicm.com
Governance
President
Stephen Baister FCICM
Chief Executive
Philip King FCICM CdipAF MBA
Executive Board
Gerard Barron FCICM
Laurie Beagle FCICM - Vice Chair
Larry Coltman FCICM - Treasurer
Victoria Herd FCICM
Bryony Pettifor FCICM(Grad) - Chair
David Thornley FCICM
Advisory Council
Sharon Adams MCICM(Grad)
Gerard Barron FCICM
Laurie Beagle FCICM - Vice Chair
Glen Bullivant FCICM
Sue Chapple FCICM
Larry Coltman FCICM - Treasurer
Jacky Cooper FCICM
Eleimon Gonis MCICM
Victoria Herd FCICM
Neil Jinks FCICM
Edward Judge MCICM
Carole Morgan FCICM
Jason Pallister FCICM
Salima Paul FCICM
Bryony Pettifor FCICM(Grad) - Chair
Charlie Robertson FCICM
Chris Sanders FCICM
Richard Seadon FCICM
David Thornley FCICM
Peter Whitmore FCICM
Paul Woodward MCICM(Grad)
The recognised standard in credit management
REGULARS
4 Editor’s column
6 News
16 CICMQ News
40 International Trade
46 HR Matters
FEATURES
11 INSOLVENCY NEWS
David Kerr summarises the Insolvency
Service’s annual report
12 INTERVIEW
Sean Feast caught up with the outgoing
President of R3 and reflects upon a busy
time for the insolvency profession.
18 CREDIT INSURANCE Special feature
Ian Selby, Risk Underwriting Manager at
NEXUS CIFS, winner of a CICM British
Credit Award, looks at Special Purpose
Vehicles and their role.
21 EXPECTING THE UNEXPECTED
Sean Feast seeks the views of some of
the major players in the credit insurance
industry in the wake of recent business
failures.
24 HOLDING A GRUDGE
Andy Moylan, Managing Director, EFCIS
Trade credit insurance brokers, winners
of a CICM British Credit Award, looks at
how credit insurance can move from a
grudge purchase to a business builder.
26 CONSUMER CREDIT
Amanda Hulme gives an overview of all
the goings on in the world of consumer
credit.
28 OPINION
Karen Young looks at what it takes to be
a successful credit manager.
30 FOLLOW MY LEADER Special feature
In the second of a new series, Vicky
Bailey of Delphinus tmc considers the
benefits of being a proactive and reactive
leader and which style is more effective.
32 ROYAL CELEBRATION
The Queen's Representative, current
and former Presidents, Fellows, Chairs
and other VIPs gathered for the formal
unveiling of the Royal Charter.
34 HOUSE RULES
Rosanna Bryant considers the treatment
of mortgage customers who fall into
arrears in the light of recent FCA findings.
50 Branch News
52 Forthcoming Events
58 New members
60 Cr£ditWho? directory
63 Crossword
31
38 PAYMENT TRENDS
Jason Braidwood MCICM(Grad), Head of
Sales Ledger Consultancy at Creditsafe
Business Solutions, analyses the latest
monthly business-to-business payment
performance statistics.
43 SOAPBOX CHALLENGE New feature
Glen Bullivant FCICM has an issue with
smartphones, or rather smartphone users.
44 NORTHERN ROCK
Peter Walker reviews a recent case to
see if borrowers could claim the same
recompense as others following the
collapse of Northern Rock.
48 LEGAL HELP FOR CICM MEMBERS
The CICM’s legal partner Freeths provides
legal advice for CICM members and their
employees.
53 EDUCATION
Is it time to educate your boss?
23
www.cicm.com April 2015
3

CREDIT MANAGEMENT
CM
THE CICM JOURNAL FOR CONSUMER AND
COMMERCIAL CREDIT PROFESSIONALS
Publisher
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Sean Feast
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Reproduction in whole or part is forbidden without specific
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Management’ is a registered trade mark of the Chartered Institute
of Credit Management.
ISSN 0265-2099
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July 2012-September 2013:
Average net circulation 7073
the
Editor’s
column
RAISING A GLASS
TO BETTER PAYMENT
BEHAVIOUR
BIG companies are often criticised
for the way they treat their smaller
suppliers and they don’t come much
bigger than Diageo.
Last month, the drinks giant sent out
a letter to its suppliers that set the alarms
bell ringing. It implied that the firm was
looking to move its payment terms from 60
days to 90 days (from receipt of invoice),
and appeared to justify the change by
benchmarking its future model with the
behaviour and culture of ‘… a number of
industry and large organisations…’
Perhaps not surprisingly, the letter was
quickly leaked. Concerns were raised within
the media, with a particular emphasis
on Diageo’s status as a signatory to the
Prompt Payment Code (PPC). The Code,
administered on behalf of the Government
by the Chartered Institute of Credit
Management (CICM), has been much in
the spotlight of late. The Government,
as reported in this magazine, has only
recently announced a series of changes that
enhance the Code’s enforcement powers,
and this was its first major test.
On being approached by the CICM
Diageo, to its credit, quickly sought to
clarify its position and its commitment to
treating the supply chain fairly. It insisted
that its standard supplier terms were not
changing, and that no supplier would be
required to move to longer payment terms
to secure future business.
The CICM, for its part, later praised
Diageo for clarifying its position, describing
it as ‘a victory for Diageo, its suppliers,
and all those that seek to create better
behaviour, culture and understanding of
payment issues.’ (see news page 9).
Diageo’s actions may not be judged so
benevolently, and with such understanding,
by others. Indeed its people might yet be
accused, perhaps unfairly, of executing
something of a climb down. But does it
really matter?
Detractors of the PPC have tended to
say that the Code lacks ‘teeth’. That it has
‘failed’. Really? Despite it being a voluntary
Code, Diageo thought it of sufficient
importance to become a signatory, one of
1800 firms who have so far come to the
same decision. It has also subsequently
defended its right to remain, and go on
record to confirm its 60-day terms. That
sounds like a Code that is working to me.
The CICM, for its part, later praised Diageo
for clarifying its position, describing it as ‘a victory
for Diageo, its suppliers, and all those that seek to
create better behaviour, culture and understanding
of payment issues ...
4
April 2015 www.cicm.com
The recognised standard in credit management

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CICM NEWS
CMNEWS
A
round-up
of news stories
from the world
of consumer and
commercial
credit.
By SEAN FEAST
RISE IN COURT FEES
AGAINST THE PRINCIPLES
OF MAGNA CARTA
THE legal and credit industries have
reacted with dismay and some
anger to the decision by the House
of Lords to agree to the Ministry
of Justice’s proposal to increase fees for
money claims, and the speed with which
the proposals will come into force.
From 9 March, a new tariff was
introduced changing the way fees
are charged in both ‘specified’ and
‘unspecified’ money claims, primarily
impacting proceedings for the recovery
of money on claims worth £10,000 or
more. In certain values of claims, fees
have increased by a staggering 622%,
an increase roundly criticised by the Law
Society as being ‘tantamount to selling
justice contrary to the principles of Magna
Carta’.
Law Society president Andrew
Caplen said that the Government's
policy on 'enhanced court fees' amounts
RESEARCH published by the Financial
Conduct Authority (FCA) reveals that some
vulnerable consumers seeking help from
financial providers are meeting ‘a computer
says no’ approach, putting them at risk of
further detriment.
The FCA's Occasional Paper on
Consumer Vulnerability is described as the
first step in a conversation with firms to
determine how the regulator and industry
can work together to address issues around
vulnerability. The UK’s aging population,
as well as changing trends in public health
and society, means that developing more
to a flat tax on those seeking justice:
'The government's hikes will price the
public out of the courts and leave small
businesses saddled with debts they are
due but unable to afford to recover,” he
said. “State provision for people to redress
wrongs through the courts is the hallmark
of a civilised society.”
Charles Wilson FICM, Chairman and
Managing Director of Lovetts, agrees that
a civilised society supports its legal system
so that all can get access to Justice.
But, he says, such swingeing increases
threaten all SMEs because the business
user and creditor (who is already paying
more than cost) may be denied access
to justice for a major debt which might
destroy their livelihood.
“It is inevitable that creditors will be
directed towards going straight into
Insolvency proceedings (as it is currently
cheaper) which will clutter up our
FIRMS CHALLENGED TO REVIEW APPROACH TO VULNERABILITY
inclusive policies will become increasingly
important.
The FCA’s research shows that many
consumer protection policies are designed
for a ‘typical’ consumer and sometimes
not flexible enough to capture individual
situations. Therefore, if frontline staff
can recognise the signs of potential
vulnerability, they can more easily refer
customers to specialist support where
appropriate.
Consumer organisations have also told
the FCA that they are seeing people in
difficult circumstances inevitably struggling
‘traditional’ court systems with volume
claims that they were not designed to
carry,” he says.
“This means that the tactics of how to
recover debt cost-effectively become even
more important, and hence, the advice
at an early stage from skilled specialists
will be even more necessary for the credit
manager.”
Philip King, Chief Executive of the
Chartered Institute of Credit Management
(CICM), is especially concerned about
the speed with which the new fees have
been introduced: “The level of opposition
from a broad range of bodies suggests the
consequences haven’t been fully thought
through,” he said.
“The legal process should provide
a vehicle through which creditors can
recover unpaid debt and increases of this
magnitude may serve simply to undermine
that process.”
with rigid policies within some firms,
exacerbating already stressful situations.
The FCA’s research suggests that
most problems relate to poor interaction
or systems and that some consumers are
overwhelmed by complex information and
find it hard to distinguish between marketing
and important product messages.
The Occasional Paper includes a
Practitioners’ Pack to support firms’
understanding of how they can generate
better outcomes and develop more inclusive
services for vulnerable consumers.
fca.org.uk/consumer-vulnerability.
6
April 2015 www.cicm.com
The recognised standard in credit management

DRINKS GIANT FORCED TO
CLARIFY PAYMENT TERMS
THE Chartered Institute of Credit
Management (CICM) has welcomed
the decision by Diageo, the global
drinks company, to clarify its
payment terms to suppliers and commit to
a maximum 60-day payment terms for all
SMEs in the UK.
The decision follows a series of
meetings and discussions between Diageo
and the CICM which administers the
Prompt Payment Code (PPC) on behalf of
the Department for Business, Innovation
and Skills (BIS) and whose chief executive,
Philip King, is the co-Chair of the newly
formed PPC Advisory Board.
Diageo is one of more than 1,800
signatories to the Code, but was criticised
for appearing to change payment terms
to suppliers without consultation, and
therefore not acting in the spirit of the
code and at risk of breaking it. The CICM
intervened to seek clarification after
concerns were raised and Diageo’s status
as a signatory was challenged.
David Cutter, President, Supply
and Procurement for Diageo said that
Diageo acknowledged that an original
letter sent to suppliers caused confusion
and reaffirmed its commitment to its
suppliers and its desire in particular to
support SMEs: “We want to clarify that
our standard supplier payment terms have
not changed and no supplier would be
required to move to longer payment terms
in order to secure future business.
“We fully recognise the importance
of SMEs to the UK economy and to the
sustainability of our own business and
therefore we will commit to a maximum 60
day term for all SMEs in the UK.”
Mr Cutter also clarified concerns over
Diageo’s supplier financing offering: “Our
offer of supplier financing is not connected
in any way to payment terms,” he
continued. “Since launching the scheme
in November 2012 it has been, and it will
continue to be, available to suppliers on 60
day, or indeed fewer days.”
Mr King says that the drinks firm risked
becoming the first major business to be
de-listed from the Code: “The Prompt
Payment Code has been strengthened
recently to give it greater enforcement
‘teeth’ and this was its first major
challenge,” he said.
“I am pleased that Diageo has sought
to clarify its position and confirm its
commitment to treating the supply
chain fairly. It is a victory for Diageo, its
suppliers, and all those including the
CICM and BIS that seek to create better
behaviour, culture and understanding of
payment issues.”
The recognised standard in credit management www.cicm.com April 2015 7

CICM NEWS
THE Credit Services Association (CSA)
has launched a series of bespoke
Forums for members to discuss, share
and collaborate on key issues regarding
compliance.
The Compliance Forums, announced at
the CSA’s Members’ Meeting and Annual
General Meeting in February, will be very
inclusive in their nature, according to CSA’s
Regulatory and Corporate Counsel Gillian
Tiplady: “Our aim is to develop a collegiate
approach to compliance amongst the
members and provide a broader range of
coverage of the developing FCA issues,”
she says.
The content of each Forum will be partly
CSA LAUNCHES NEW COMPLIANCE FORUMS
devised by the CSA but also determined
by the participants. The CSA will be inviting
members to request topic areas or ask
specific questions in the lead up to the
Compliance Forum.
“Members will be asked to complete
a pro-forma detailing issues they are
grappling with,” explains Gillian, “or areas
of compliance where they are not sure of
the best approach. The CSA will prepare an
agenda for each Forum in response to the
current issues, which will be shared with
attendees in advance of the meeting to
help them better prepare.”
The sessions, which will be held
every two to three months, are aimed at
compliance officers and in-house lawyers,
and also those studying at Level 3 and 5
Diploma level. Each session will involve
a presentation on an agreed subject
area, and where appropriate an FCA
spokesperson will be invited to answer
members’ concerns. The format of the
meeting will follow the issues raised as
the agenda, working through them as a
group and giving people the opportunity to
contribute their views.
The first meeting was held on 10
March. For more information, contact
Claire Aynsley at claire.aynsley@csa-uk.
com or Gillian Tiplady at Gillian.tiplady@
csa-uk.com.
BIG FIRMS SHOULD PAY SMALL
SUPPLIERS IN 30 DAYS
THE Government-backed Prompt Payment
Code, administered by the Chartered
Institute of Credit Management (CICM), will
now promote 30-day payment terms as
standard, with signatories committing to pay
within a 60-day maximum limit. Unless these
firms can prove exceptional circumstances,
they will be removed from the Code.
The change will be rigorously enforced
by the new Code Compliance Board,
which will include individuals from business
representative bodies who will investigate
challenges made against signatories to the
Code by their suppliers. The Compliance
Board will remove signatories found to
be in breach of the Code’s principles and
standards.
More than 1,800 businesses and
public authorities have so far committed
to these principles, which include paying
suppliers within an agreed timeframe and
communicating with them effectively.
Business Minister Matthew Hancock
says making small businesses wait an
unreasonable time for payment is entirely
unacceptable: “I know first-hand the great
burden that late payment can place on firms
– and how it can strain family finances –
which is why I am committed to stopping it.
“Big companies should lead by example
and pay small suppliers within 30 days. I
have already written to the FTSE 350 urging
them to sign up to the Prompt Payment
Code.”
The change follows a Downing Street
summit and a meeting of the Prompt
Payment Code Advisory Board, which was
co-chaired by Matthew Hancock and Philip
King, Chief Executive of CICM.
Businesses will be actively encouraged
to start complying with the strengthened
Prompt Payment Code with immediate
effect and this will complement the tougher
reporting laws in the Small Business,
Enterprise and Employment Bill.
These new laws will force the UK’s largest
companies to publish their payment terms,
increasing transparency and empowering
small businesses. The Code Compliance
Board will be able to use this data to review
the status of signatories to the Code and
challenge those that either do not pay their
suppliers promptly or insist on excessively
long standard terms.
Philip King says the Prompt Payment
Code has had a significant impact in
challenging payment practices and creating
a debate and dialogue around the behaviour
and culture of late payment that did not
previously exist – a fact borne out in the
recent joint CICM/BIS survey:
“I am delighted that we have now agreed
to further strengthen the Code, giving it more
structure and introducing a Compliance
Board to build on the success of challenges
to date.
“The 60-day maximum is also to be
welcomed, and the decision of the Advisory
Board is an indication of how far the debate
and sentiment has moved since the Code
was launched, leading to a recognition that
ethical treatment of the supply chain should
be an imperative.”
A joint CICM/BIS survey in December
2014 found that 72 percent of signatory
responses supported the introduction of a
maximum payment target and 63 percent
of these thought that the term should be 60
days.
Introducing a maximum payment term
to the Prompt Payment Code had been
raised during Parliamentary debates of the
Small Business, Enterprise and Employment
Bill.
NEWS IN BRIEF
RIMILIA TO LAUNCH NEW
SUMMER COLLECTION
Rimilia, the credit management software
business, has hinted at the launch of a new
suite of cash allocation products that take
advantage of Robotic Process Automation
technology.
Speaking exclusively to Credit
Management, Rimilia Commercial
Director, Steve Richardson, said that the
new products would feature intelligent
decision making and software that would
continually ‘learn’: “We have taken lessons
from gaming software to develop new cash
allocation products that will be both easy
and intuitive to use, and where the return
on investment can be quickly realised,” he
said.
Mr Richardson suggested that as
high as 95 percent of all cash allocation
decisions would be automated, and the
user given ‘prompts’ to determine how
and where the remaining five percent
should be allocated. “We see the credit
management world as a gateway to
sales and supporting a company’s future
growth,” he added.
Details of the new products are
expected to be announced in the early
summer.
A NOVEL AFFAIR
Pictured is Christine
Laird FCICM, the winner
of the CICM UK Credit
Managers' Index for Q4
2014 participants’ draw
for a Kindle HD, kindly
donated by Corporate
Partner, Tinubu Square.
8
April 2015 www.cicm.com
The recognised standard in credit management

CICM WELCOMES MOVE TO BRING GREATER CLARITY ON IPs FEES
THE Chartered Institute of Credit
Management (CICM) has welcomed
the announcement by the Business
Minister Jo Swinson that will oblige
Insolvency practitioners (IPs) to provide
upfront estimates of the cost of working
on insolvency cases, thus ending the
uncertainty of unlimited hourly charges.
Philip King, Chief Executive of the
CICM, said that the news was a victory for
common sense: “The CICM has been vocal
in wanting to see up-front estimates for
work undertaken so the element of surprise
is removed further down the road in the
insolvency procedure,” he says.
“The introduction of new rules is
therefore to be strongly welcomed as are
any well-considered actions that help to
bring greater confidence to creditors and
transparency in the fees that are charged.”
In a busy time for the insolvency
profession, Philip also welcomed an
initiative by R3, the insolvency trade body,
to launch a website designed to guide
creditors through the insolvency process.
HMRC has released its long-awaited
statistics on the cost to taxpayers of
operating the controversial UK antiavoidance
measure. But the information
HMRC is able to provide only covers half
the story, says the ACCA (the Association of
Chartered Certified Accountants).
Jason Piper, ACCA’s tax technical
manager, says that the wider costs of IR35
are beyond what HMRC has the remit
or resources to reasonably investigate:
“Government has clearly identified a risk
that it wants to address, but it’s important to
make sure that the mechanisms used are the
best that we can craft,” he said.
BUSINESSES in the UK received an all-time
high £19.4 billion of funding through asset
based finance in Q4 2014, an increase of
£1.6 billion on the same period a year ago,
says the Asset Based Finance Association
(ABFA).
This jump in the use of invoice finance
and asset based lending is now primarily
driven by businesses funding growth plans
rather than replacing their use of traditional
term loans or overdrafts.
According to the research, businesses
are now using 38 percent more asset based
finance than at the height of the recession
in December 2009, when £14.1 billion
was provided. 80 percent of asset based
finance is invoice finance, while the other 20
percent represents the fast-growing area of
AVOIDING THE ISSUE
The site, www.creditorinsolvencyguide.
co.uk, explains in simple terms how
creditors can engage with the insolvency
process to increase their chances of
seeing money returned to them, approve
insolvency fees, and see action taken
against fraudulent or negligent directors or
bankrupts.
Built with the support of the CICM,
Philip presented at the formal launch of
the site on March 3rd: “Insolvency can
be seemingly complex and difficult to
understand,” he says, “but a vital part of
the process is in encouraging creditors to
engage with insolvency practitioners to help
maximise recoveries.
“Understanding how insolvency
procedures work, and the terminology
used, is key to successful engagement, and
the CICM has been pleased to support this
initiative by R3. It is a major step forward
in demystifying insolvency and provides
practical, pragmatic advice that will be
welcomed by our members and the wider
business community.”
ALL-TIME HIGH FOR ASSET BASED FINANCE
asset based lending. Jeff Longhurst, Chief
Executive of the ABFA explains that there is
also another £20.5 billion of unused facilities
agreed with businesses which they could
draw down if they required it:
“Having finance in place that allows you
to move faster than your competitor allows
you to fill orders quicker, make quicker hiring
decisions, secure those new premises and
take market share quicker.
“So getting your request for funding
approved with a rapid turnaround is really
important. With invoice finance you can
rapidly scale up or down the amount of
money you borrow. With other funding
products it can take months before you
can get finance approved and the funds in
place.”
Giles Frampton, R3 president, agrees that
creditor engagement is integral to the smooth
running of insolvency processes: “It is a core
part of a strong, fair, and trusted insolvency
regime,” he says. “The more creditors get
involved, the more effective the insolvency
process is.
“The insolvency profession, government,
and creditor groups have been determined to
make it easier for creditors, particularly small
businesses, to engage in insolvencies. This
website is an important part of that effort.”
Creditors are invited to provide key
information about directors’ and individuals’
behaviour, help locate hidden assets,
and help oversee the work of insolvency
practitioners: “The UK has a world class
insolvency regime, but it is always open to
improvement," Giles adds.
The new website contains a step-by-step
guide on how different insolvency processes
work, a guide to insolvency terminology, and
tips on how to help oversee the running of the
insolvency process. (see interview page 12).
NEWS IN BRIEF
HAVE YOUR SAY
P&A Receivables Services is launching its
2015 Global Credit Survey on 7 April with the
results being published on 1 June. Running
for its fourth year, the survey monitors
overseas trading issues and concerns,
trading experiences, payments, requests
for extended terms, risk management
and the outlook for future business.
P&A is being supported this year by the
Institute of Financial Accountants (IFA), the
Chartered Institute of Credit Management
(CICM), Sheffield Hallam University, Hays
Recruitment and The Association for Credit
in Central and Eastern Europe (ACCEE).
https://www.surveymonkey.com/r/SDM83K5.
WHEELS IN MOTION
FIGURES released by the Finance &
Leasing Association (FLA) show that
consumer new car finance volumes fell by
three percent in January 2015 compared
with the same month in 2014, but
remained 11 percent up in the 12 months
to January. The percentage of private new
car sales financed through dealerships by
FLA members reached a new high of 76.2
percent in the 12 months to January 2015.
Consumer used car finance volumes grew
by three percent in January and by 12
percent in the 12 months to January 2015.
The recognised standard in credit management www.cicm.com April 2015 9

LATE PAYMENT CONTINUES
TO RESTRICT GROWTH
LATE payment to construction firms is the
top issue stifling the industry’s growth,
according to a survey by Bibby Financial
Services (BFS).
The Planning for Growth report –
produced in conjunction with construction
specialists The Vinden Partnership (TVP)
– saw 53 percent of SMEs citing late
payment as a key challenge.
Helen Wheeler, Managing Director
of Construction Finance at BFS, says
the issue threatens the survival of many
viable companies in the UK: “Our research
shows that there are substantial barriers
for subcontractors and small construction
firms to overcome.
“This has a huge impact throughout the
entire supply-chain and will undoubtedly
affect the performance of the construction
sector this year.”
Almost half of construction firms (47
percent) see a shortage of skilled workers
as one of the biggest threats to their
business, with many (39 percent) citing
increasing levels of red tape as a serious
concern.
“There are opportunities available in
the construction sector, but many firms
are unable to take on work due to a lack
of working capital. Late payment causes
significant cashflow issues and exposes
businesses to risks brought about by the
inability to pay suppliers and workers.”
New statistics from Nucleus
Commercial Finance, however, suggest
signs of a further strengthening of the
construction sector and a return to
increased confidence.
Not only did Nucleus, a CICM British
Credit Awards winner, see the volume of
deals triple in the last 12 months, but
more importantly it saw the turnovers of
clients within its construction portfolio
increase by an average of 25 percent,
allowing more cash for investment to be
released.
Chirag Shah, Chief Executive of
Nucleus Commercial Finance, says that
Construction firms are clearly enjoying
a period of sustained recovery: “An
increase in turnover demonstrates a clear
increase in confidence,” he says, “and an
increased confidence in bidding for new
contracts. It is one of the real success
stories of a recovering economy; success
is breeding further success.”Nucleus
reports demand for cash from all elements
of the construction industry and the
construction supply chain, and especially
in ‘pure’ construction – namely scaffolders,
groundworks providers, plasterers, brick
makers etc.
NEWS IN BRIEF
MAS ACCREDITATION
CICM Money and Debt Advice
qualifications, which are Ofqual regulated,
have now achieved accreditation against
the Money Advice Service (MAS) Quality
Framework for Initial Contract, Support
Work and Advice Work. This means that
learners who achieve these qualifications
will have met recognised benchmark
standards for the debt advice industry.
There is a range of MAS accredited training
available to support preparation for the
qualifications (see MAS website for details).
Also learners will be able to purchase a
CICM study guide for the CICM Award in
General Money and Debt Advice from May
on Amazon.
TRAILBLAZER APPRENTICES
BIS has approved an employer bid to
develop a Credit Controller Trailblazer
Apprenticeship standard. Apprentices
will gain knowledge about all aspects of
credit management from credit application
processing and credit risk assessment to
collections and debt recovery, and skills
specifically in telephone collections. CICM
encourages employers to provide feedback
on emerging arrangements and to contact
the Chartered Institute if they are interested
in taking on apprentices in January 2016.
PAYDAY LENDERS FAILING
CUSTOMERS IN ARREARS
THE payday industry is beginning to take
a more customer-focused approach to its
business, but a review of the first 12 months
of the Financial Conduct Authority’s (FCA)
regulation of the sector has shown that too
many firms have been failing to meet the
requirements to treat customers in arrears
fairly.
In March 2014 the FCA announced it
would carry out a thematic review into how
payday lenders and other high cost short
term credit providers collect debts and treat
borrowers who experience financial difficulty.
The review, which covered 60 percent of the
market, revealed unacceptable practices
from many lenders, including failures to
recognise customers in financial difficulty,
failure to direct people to free debt advice
and firms offering inflexible repayment
options.
However, the FCA’s work also showed
that many firms have taken steps over the
past 12 months to change behaviour and
ensure that they are able to meet the FCA’s
requirements. These include changes to
senior management, training staff to deal
with struggling customers and improving
monitoring, compliance and managing risk.
The FCA found serious non-compliance
and unfair practices in all firms that it
reviewed, leading to poor outcomes for
many customers and in some cases, serious
detriment and financial loss.
Reviews of three firms revealed a
backlog of letters and documentation,
including from vulnerable customers who
had fallen behind in repayments. This
documentation included medical evidence
and letters from debt advisors providing
crucial information about why some
customers were failing to pay. Upon further
investigation it was revealed that some of
these customers were still being pursued by
collection agents.
CICM IN BRIEF
This month’s CICM Brief includes...
details of the Credit Risk and
Compliance Masterclass, the
latest Credit Managers' Index,
and the Success with Technology
Solutions Masterclass.
10
April 2015 www.cicm.com
The recognised standard in credit management

INSOLVENCY NEWS
END OF TERM REPORT
THE Insolvency Service (IS) annual
report, ostensibly a review of 2014,
reads a little like an end of term
report. Published just before the
pre-election lock down, it summarises
a number of different strands of activity,
many of which have been in the making
throughout the lifetime of this Government.
By way of introduction, and
perspective, the IS rightly reminds us
that most of the regulatory activity is
undertaken fairly, professionally and
effectively. There is a recognition though
that a lack of understanding of the regime
by stakeholders can mean that much
of the good work is in danger of being
eclipsed by unfulfilled expectations. In
particular here I think the IS is referring
to some complainants, whose demands
may be unrealistic. All the regulators will
have had experience of cases in which
the deployment of resources has been
disproportionate to the degree of alleged
misconduct. Those cases divert effort
away from more serious matters.
The key to addressing this is in part
transparency. More publicly available
information, centralised and easily
accessible, for example regarding
outcomes involving some form of sanction,
will help. This will highlight any major
differences between regulators, and the IS
has a key role to play here in making sure
there is a level playing field.
The Bills before parliament include
measures to introduce regulatory
objectives and sanctions against
regulators, but the real impact of those
will depend on the IS's willingness to
tackle departures from the standards it
sets. The annual report shows there are
some inconsistencies that have yet to be
ironed out. The existence and continuation
of some apparently material differences
is disappointing in a mature regulatory
regime. It seems there is much still to be
done, and the longer the present situation
persists, the greater is the prospect
of calls for use of the Bill’s backstop
provision for a single regulator. That is
contrary to the IS’s stated intention of
seeing the present regime work well, but
how well it works is in some respects
down to the IS itself, in its capacity as
oversight regulator, as well as of course
the individual regulators.
Physical meetings
Other measures in the Bill include removal
of physical meetings of creditors as a
default position in insolvencies. At one
level this might look like a sensible red
tape measure, but it flies in the face
of other objectives around creditor
engagement and removes practitioner
discretion. A better approach would be
to let practitioners make a professional
judgement on a case-by-case basis.
The de-regulation Bill will see partial
licensing for practitioners who want
to specialise in personal or corporate
work. The IPA supports that move, as it
increases choice. Subject to safeguards
that can be built into the examination
structure, this is a low risk innovation.
Practitioner fees receive only a passing
mention in the report but the IS has
published its plans for fee estimates,
based on representations made by the
profession and others. More on that in a
later edition.
Pre packs continue to absorb a lot
of time and effort. Interesting to note
that there were 250 connected party
translations in 2014. The new prepack
pool should be up and running shortly,
and CICM, R3, IPA and other regulators
along with some other stakeholders wrote
to Vince Cable to confirm support for and
a commitment to the new system. A new
SIP16 should be out by the time you read
this.
Standards setting through the Joint
Insolvency Committee chaired by Philip
King continues its work, and issued new
guidance on Reservation of Title last year.
Complaints were made through the
gateway for the whole of 2014, its first
full calendar year of operation. Seventy
five to 80 percent of the complaints made
were passed to regulators for further
enquiry, the remainder being rejected by
the IS gateway staff. IVAs accounted for
about 1/3 of complaints in 2014. Nearly
half of all complaints were from debtors,
and this represents a significant change,
as historically the majority of complaints
have come from creditors. PPI-related
complaints have featured strongly.
This year will see changes to the
regulatory environment, with one or
more of the current regulators probably
withdrawing and some consequent
rationalisation in the insolvency market.
Legislative changes in October, to be
followed by Rules consolidation in early
2016, provide plenty of scope for debate
in the coming months. The real challenge
comes in the perceptions of creditors
and others about the effectiveness of the
regime, and that is an open question.
David Kerr MCICM is the
Chief Executive of the Insolvency
Practitioners Association (IPA).
CREDIT MANAGEMENT
CM
The recognised standard in credit management www.cicm.com April 2015 11

INTERVIEW
THE SINGING
DETECTIVE
Sean Feast caught up with the outgoing President
of R3 and reflects upon a busy time for the insolvency
profession.
THERE is something about the
insolvency profession, and
investigation work in particular, that
has excited Giles Frampton from
the beginning. He sees it as a challenge:
“Finding out what happened, why it
happened, and where the money went is a
rewarding intellectual exercise,” he explains.
“I have been involved in cases where
the behaviour of individuals has been so
strange, and so unbelievable, that even
now I am disinclined to say more. Both as
an investigating accountant, and as an IP,
you will always be alert to fraud, but for
everyone who is caught, there must be
many others who simply get away with it.”
It would be wrong to say that Giles
‘fell’ into accountancy, or insolvency, but
it would be equally misleading to suggest
it was part of a grand plan. As the son
of a naval officer, born in St George’s
Hospital at Hyde Park Corner, Giles lived
the peripatetic life familiar to all children
born of Service parents: “Name a county on
the south coast and I have probably lived
there,” he jokes.
After schooling in Nottingham and
Chester (his father had worked for Rolls
Royce for a time, giving the young Giles
his first experience of receivership) he
won a place to study Philosophy, Politics
and Economics at Christ Church, Oxford,
a contemporary of Howard Goodall CBE,
the English composer, and the MP David
Willetts among others. He remembers it as
a happy time, not least because it gave him
the chance to indulge in his great passion.
Music.
“I enjoyed Oxford very much,” he says.
“Most of my time was spent playing my
violin and singing, although I did do just
enough work to get a second!”
It was while he was at University,
however, that he first became interested
in accountancy: “As a young man I
always wanted to be a lawyer but my
plans changed,” he says. “I opted for
PPE because it interested me. Then in
my second year I spent six weeks at the
accountants Peat Marwick Mitchell in
Birmingham and was fascinated by it all.
These were the days when sales ledgers
were enormous books with inked entries
in green, blue and red, and you had to
remember which colour to use for that
year's audit.”
While he was there, he helped to
uncover a fraud, discovering an invoice for
£25,000 ‘for services supplied’ but no other
detail. It was the start of an interest that has
sustained a career for more than 30 years.
Giles went down (in the Oxbridge
parlance) in 1979, determined to become
an accountant: “I knew I did not want
to enter academia and wanted to earn
some money,” he jokes. “I knew that a
qualification was important, and saw with
accountancy that it opened the door to
a world of opportunity. I also recognised
later in life (at the risk of upsetting any
careers masters) that you don’t need to
do an accountancy degree to become
an accountant. Indeed you probably
shouldn’t!”
Giles trained as a Chartered Accountant
with Thomson McLintock, and joined the
Plymouth office of Peat Marwick Mitchell
in 1984 to focus on insolvency work. (“I
came in with the 1986 Act!”) His first
major insolvency case was the Berkeley
Applegate liquidation, one that is still cited
in case law on a regular basis. He obtained
his insolvency licence in 1989 and became
a Partner in what had then become KPMG
in 1991, before teaming up three years
later with a former Grant Thornton Partner,
Richard Smith, to form Richard J Smith &
Co, specialising solely in corporate and
personal insolvency work and in forensic
accounting .
One of his most challenging – and
personally rewarding – cases concerned
the liquidation of Ford Park Cemetery.
The business responsible for running the
12
April 2015 www.cicm.com
The recognised standard in credit management

I knew that a qualification was
important, and saw with accountancy
that it opened the door to a world of
opportunity ...
– GILES FRAMPTON
CONTINUES OVERLEAF
The recognised standard in credit management www.cicm.com April 2015 13

CONTINUED
cemetery, and which had been formed in
the 19th Century, could no longer manage
its affairs and Giles was appointed as
sole liquidator. The cemetery – around 34
acres in the middle of Plymouth – included
graves of those lost in the Titanic disaster
as well as a number of war dead, and not
surprisingly there was huge public interest.
Giles found himself stuck between a rock
(or should that be tombstone?) and the
proverbial hard place:
“My duty was to get the best return
for the creditors,” he says, “but this was
against a particularly horrendous context.
The possibility of having to exhume graves
to prepare the site for sale was not a
pleasant one and the Section 98 meeting
at the Ford Park Cemetery Chapel was
particularly well attended.”
Happily for Giles, and the relatives of
the deceased, the cost of clearing the site
outweighed the cost of the land, making it
financially worthless. “We were therefore
able to ‘disclaim’ it,” Giles explains, “and
the cemetery passed into the hands of a
local Trust that had been set up especially
for the purpose.”
It was a classic case of the IP being
the messenger, although in this case there
was a satisfactory outcome. But there are
plenty of other occasions in which IPs find
themselves in the firing line, accused of
charging disproportionate fees or being
insensitive to directors of failed or failing
businesses. As Giles explains, however,
IPs have to deal with the certainty of an
uncertain world:
“Things can easily go wrong for the
IP,” he says, “such as when assets (and
especially the debtor book) appear to have
a value but are in fact worthless, or when
stock that appears to have no ownership
or retention of title seems to evaporate in
front of your eyes. IPs can spend much time
and energy chasing shadows through no
fault of their own for issues that they cannot
possibly have foreseen, and these are nearly
always costs that have to be written off.”
Then, Giles says, there are hostile
directors and debtors: “Difficult or so-called
‘hostile’ bankrupts can cause all sorts of
trouble and make outrageous allegations
that are difficult to take,” he says, “but the
IP has to grin and bear it.”
Impeccable credentials
Giles’ credentials for championing
the cause of IPs are impeccable.
Notwithstanding his experience, Giles
has also been at various times the
accounting member of the Insolvency Rules
Committee, an examiner for the personal
insolvency paper of the Joint Insolvency
Examination Board (JIEB), and chairman
of the Insolvency Licensing Committee of
the ICAEW. He is a co-editor of Individual
Voluntary Arrangements published by
Jordans.
He is also, perhaps most importantly,
the current serving President of R3,
the Association of Business Recovery
Professionals. As such he has intimate
knowledge of the ongoing work his
association is doing to represent its
members, often in the case of severe
prejudice. He tackles the issue of fees
head on: “Justifying your fees is a constant
challenge in any profession,” he continues.
“It is not something that is unique to our
industry. But the Government has now
accepted that a cost/time model is the best
way forward, as opposed to a percentage
of realisations or a fixed fee. This helps IPs
to deal with the unknown, and is probably
the fairest way of charging. It is also, I
believe, a pretty good measure of value.
“Estimates are a good idea,” he adds.
“Of course they aren’t perfect, but they do
give the IP an opportunity to go back to
the client after their initial investigation and
revise the estimate accordingly.”
Giles contests that while fees tend to hit
the headlines, the number of complaints in
relation to IP fees is minimal, and certainly
disproportionate to the media attention
they attract. So too the issue of Pre-Packs:
“When Teresa Graham went on record as
saying that Pre-Packs were a good thing,
that was a major advance,” he says.
He believes also that the idea of a
‘pool’ of senior business professionals who
judge whether the sale of a business to a
‘connected party’ is fair and reasonable is
at least one that demands (and is receiving)
closer scrutiny.
The Government has been especially
active in reviewing the insolvency regime
in recent years and all parties, the
Government, the Insolvency Service, the
IPs, creditors and debtors see the value in
ensuring that the process is as easy and
as streamlined as possible. Few would
argue, for example, with the greater use of
technology to facilitate meetings, but these
should not be at the expense, Giles argues,
of the IPs' right to call a creditors’ meeting
In 2012, IPs helped rescue 6,100
businesses and helped save
750,000 jobs (ComRes/R3 survey).
There are currently around 1,700
insolvency practitioners in the
UK, of whom around 1,300 take
appointments
Since 2010, the insolvency
profession has had to respond to
more than 20 pieces of legislation
or government reviews.
in person when the need arises: “We would
not want to see this power removed,”
he says. “Face-to-face meetings can be
incredibly useful to question the directors
or debtor in person and to collect and share
information with creditors in a way that is
just not possible otherwise.”
The Small Business, Enterprise and
Employment Bill, Giles says, includes many
sensible and worthwhile provisions such
as a proposal to extend administrations:
“That’s a good thing,” he explains. “We
would have liked to have seen no limit to
the life of an administration, but adding
six months to the extra time period which
can be approved by creditors will cover
the vast majority of cases that need to be
extended.”
Jackson has, of course, been a key
focus for R3 and the Ministry of Justice only
very recently backed down on its proposal
to remove the exemption for insolvency
litigation from the Legal Aid, Sentencing,
and Punishment of Offenders Act. It will
look at the issue again later in the year.
The evidence, Giles suggests, points to
the permanent exemption for insolvency
litigation as being a good thing,: “Our
members want creditors to get a return,”
Giles stresses. “It demonstrates that we
have done our job properly, and this is
especially so in litigation-type cases.”
It is the one blot on an otherwise
encouragingly sunny landscape.
Certainly there are other issues currently
in R3’s sights, including the challenge
of Super Priority Funding, Collective
Redundancies and moratoria. Its recent
Personal Insolvency Landscape paper was
particularly well received and it would like to
see a full review of the personal insolvency
regime. It has also developed, with the
support of the CICM, a new website to
guide creditors through the insolvency
process (see news page 7).
Since November 2014 Giles and his
colleagues have between them met with
30 different parliamentarians and the work
continues: “It’s fair to say that R3 has been
enormously busy, but we have made real
progress and can point to tangible results,”
he says.
So does he still have time for his music?
The violin has been (largely) put back in its
case, though Giles still finds the time to sing
in several different choirs: “On a good day,
my top ‘A’s’ are still acceptable,” he laughs.
14
April 2015 www.cicm.com
The recognised standard in credit management

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CICMQ NEWS
STRUCTURAL CHANGES BEHIND IMPELLAM’S CICMQ ACCREDITATION
IMPELLAM Group, which provides
specialist-staffing services to clients
through 19 different leading brands in a
range of public, private and not-for-profit
sectors, has recently achieved CICMQ
accreditation for the first time.
The company offers managed services,
specialist staffing, and support services to
clients throughout the world, is the second
largest staffing business in the UK and the
12th worldwide.
Although recognising its positive
practices and attributes, Impellam felt that
the CICMQ process would enhance the
40-member credit team’s strength, whilst
continuing to develop resources so that
best-practice was evident 100 percent of
the time.
A number of structural changes at the
beginning of 2014, including the bringing
together of various credit and billing teams
within Impellam’s 19 brands under a unified
shared service centre, led Beverly Sage,
Billing and Credit Services Manager, to
believe it was the perfect time to apply for
CICMQ.
“Given the number of changes the team
had been through it was a great measure
to assess where we were and where we
wanted to be. The team have felt involved
throughout and are extremely proud of their
achievements.
“We already had some good working
practices and a very strong team.
Going through the CICMQ process has
enhanced this and given us some new
ideas and encouraged everyone to work
together to ensure we are continually
improving.”
16
April 2015 www.cicm.com
The recognised standard in credit management

CERTAS ENERGY’S FIRST TIME RE-ACCREDITATION
CERTAS Energy UK, the UKs largest
independent distributor of fuels and
lubricants and whose customer base
ranges from domestic consumers to multinational
corporations, has achieved its first
CICQM re-accreditation.
Since their original 2013 accreditation,
the 94-strong Credit Control team continues
to fully embrace the company’s motto,
‘Doing it right, together, keeps the customer
happy’, providing invaluable credit risk and
legal support to many industries, including
aviation and agriculture.
Heather Strachan, Regional Credit
Manager at Certas Energy, attributes reaccreditation
success to a broad range of
factors, paying particular emphasiss on
forging a strong relationship with the sales
team:
“We prioritise mutual understanding
within the company, recognising the
importance of working together in finding
joint resolutions to particular challenges,
which ultimately leads to an ever-improving
customer experience,” she says.
RE-ACCREDITATION SUCCESS FOR MORETONSMITH
MORETONSMITH, the international
receivables management specialists, has
achieved CICQM re-accreditation after
displaying excellent customer service.
Operating in 120 countries,
MoretonSmith has built extensive
partnerships formed over its 20 years
industry experience, and it continues to
recover more of what customers are owed,
at a lower cost, and with less hassle.
Emphasising the immediate assurance
re-accreditation gives new customers,
Lauren Carter, Head of Legal Recoveries
explained: “We can recover customers
debts much faster, as CICMQ proves we
are a reliable, trustworthy outfit to new
customers, who shorten due diligence
processes.
“The combination of positive
reinforcement alongside future reaccreditation
means everyone is motivated
to continuously improve their own
performance and therefore the business
overall.”
CICMQ ACCREDITED COMPANIES
AB Agri
Revenue Management, B2B
Marshalls Group Plc
SEGRO UK
Adecco
Aggregate Industries
Aimia Foods Limited
Anixter Ltd
Avnet Technology Solutions Ltd
Brother UK
BT plc (Group Collections –
Business)
Certas Energy
Computers Unlimited
Ecclesiastical Insurance
EDF Energy Plc – B2B Majors –
Revenue Management
Essex County Council
Ford Retail Ltd
GeoPost UK Limited
HSBC Invoice Finance (UK) Limited
Hill Dickinson LLP
Impellam Group
Ingram Micro
Intercity Telecom Ltd
John Lewis Plc, Partnership
Sevices.
Lee Baron Limited
Lease Plan UK Ltd
Linden Foods
Matthew Clark Wholesale Ltd
MBNA
Milliken Industrials Ltd
MoretonSmith
Muller UK & Ireland Group
NHS Blood & Transplant
National Grid Plc
NEC Ltd
npower Industrial and Commercial
Pension Protection Fund
QA Ltd
RS Components Ltd
Shell International Downstream
SIEMENS
SIG Distribution
Skyscanner Ltd
Synseal Extrusions
Talktalk Business
Tenet Group Limited
Travis Perkins
Turner & Co (Glasgow) Ltd
Veolia ES UK Plc
Virgin Media
Walsall Council
Westmill Foods Ltd
EDF Energy Plc – Multi Sites
Local world Ltd
Credit Management
Xoserve
The recognised standard in credit management www.cicm.com April 2015 17

CREDIT INSURANCE
IN THE DRIVING SEAT
Ian Selby, Risk Underwriting Manager at NEXUS CIFS, winner of a CICM British
Credit Award, looks at Special Purpose Vehicles and their role.
SPECIAL Purpose Vehicles (SPVs) are
becoming an increasingly prevalent
method for large companies or
investors to manage projects. But
while the reputation of SPVs has been
tarnished in the past by the opaque world
of off-balance sheet funding – think the
Enron scandal in 2001 – used properly they
are a useful tool in ring-fencing the risks of
major projects and new ventures.
An individual company may wish to
set up an SPV to separate a project from
their day-to-day business. The partners
for a Joint Venture may wish to set up an
SPV to be able to clearly allocate costs
and benefits between the partners. Where
external funding is needed, lenders will
often prefer to take this route to allocate
their investment to a particular project to
separate it from general funding for the
group. When it comes to a sale, an SPV
structure gives a tidy legal and operational
structure to be sold on.
However, they provide special
challenges for those seeking to assess
their creditworthiness because by definition
they have no trading history and the usual
business metrics are just not there. In
addition SPVs are often established for
long-term projects, incurring significant
initial set-up costs before any cash flows
are generated.
Examples might be: property
development for large-scale residential
projects or shopping centres; environmental
energy such as wind and solar collection
projects; infrastructure such as transport
terminals and new transport links;
technology development – where a new
18
April 2015 www.cicm.com
The recognised standard in credit management

FEATURE
SPECIAL
An individual company may wish to set up an
SPV to separate a project from their day-to-day
business. The partners for a Joint Venture may wish
to set up an SPV to be able to clearly allocate costs
and benefits between the partners ...
– IAN SELBY
NEXUS CIFS
initiative might be sponsored by a company
and a research institute or establishing a
new market. In all of these circumstances
the returns may be several years ahead.
Special challenges
Effective underwriting is all about correctly
understanding the various risk factors, not
just the financial data.
The first things to look at are the obvious
items of information in the public domain,
such as Articles of Association for the
company and the ownership structure. Do
the owners have a track record in using
SPVs to deliver projects to market? Why
are they using an SPV on this occasion?
Where there are a number of partners,
it is important to understand their role
and relationship to one another. It was
widely reported last month that Interserve
and Atkins have joined forces with China
State Construction Engineering Corp
to work on Dalian Wanda’s Nine Elms
Project in London as part of a drive of
Chinese construction groups entering the
UK market. Although there may be little
track record of these companies working
together, this is clearly part of a larger group
strategy. The Joint Venture structure is key
to allowing foreign companies to ‘dip their
toe’ into the UK market with the help of a
more established player.
Understanding the sources of funding
is equally important. A significant capital
injection rather than debt is always a
good sign. Where there is external debt,
understanding the structure and when
interest and principal repayments become
due can give further comfort if sensibly
structured.
Also key is to understand where you or
your client fits in terms of the supply chain.
For example, if a company is providing the
foundations of a building then they are likely
to be at the top of the payment list when
cash is still readily available.
Lastly, it is crucial to take a view on the
sector the SPV is operating in. Changes
in Government regulation or indeed
international law may alter the picture of
that sector. Shifts in the tax regime could
affect project plans. A good example of
this is in the recent changes to the way
that solar energy projects are treated. Once
extremely popular with the Government,
their importance has been downgraded and
this, coupled with the fall in the price of oil,
could have the potential to affect profits
dramatically.
No magic formula
Besides the usual diligent examination of
the available information and assessing
it with an experienced eye, it can be
necessary to undertake additional research
to understand exactly how the project has
been set up. Diplomatic interviewing of
stakeholders is often vital in obtaining the
necessary background to be able to make
an informed assessment.
Ian has been in the credit insurance
market since 2005 and joined Nexus
CIFS as a Risk Underwriter in 2008. Ian
looks after a wide portfolio of policies
and has specific responsibility for
the construction sector and also has
experience in IT and electronics gained
from his underwriting role prior to joining
Nexus CIFS. ian_selby@creditindemnity.
com.
The recognised standard in credit management www.cicm.com April 2015 19

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20 April 2015 www.cicm.com
The recognised standard in credit management

EXPECTING THE
UNEXPECTED
Sean Feast seeks the views of some of the major players in the
credit insurance industry in the wake of recent business failures.
TRADE CREDIT INSURANCE PART ONE
THE sudden and dramatic collapse
of Phones4U in September last
year sent shockwaves through
the credit insurance industry. The
immediate blame for the company’s
failure was set at the feet of the country’s
biggest mobile phone operator, EE, owner
of the Orange and T-Mobile brands, and
its decision not to renew a contract to sell
its products in Phones4U shops. It was
a hammer blow that followed a similar
decision by Vodafone and two other
operators, O2 and Three. David Kassler,
the Chief Executive of Phones4U said
simply: “If the mobile network operators
decline to supply us, we do not have
a business.” Despite revenues of £1
billion, the business was obliged to enter
into administration.
Sadly, Phones4U was not the only
sudden failure last year that impacted the
insurance world. City Link, the parcels
delivery business, threw in the towel on
New Year’s Eve, placing close to 4,000
jobs in jeopardy; while on the international
stage, OW Bunker, Denmark’s third
largest firm, entered into bankruptcy amid
accusations of fraud in its Singaporebased
subsidiary. A joint statement from
Denmark’s pension funds described the
collapse as: “Significant, extraordinary
and highly negative.”
Such failures, whilst costing the
credit insurance industry millions of
pounds in claims, ironically serve to
support one of the product’s key selling
points – protecting suppliers against the
unexpected failure of one of their larger
customers. They have also resulted
in a shift in attitude to underwriting,
according to Gerard van Kaathoven,
Chief Executive of Euler Hermes for the
UK and Ireland: “Whereas we used to be
happy to underwrite the subsidiaries of a
strong parent company, this is no longer
guaranteed,” he explains. Gerard says
this is especially true of High Street retail:
“We no longer assume that a parent will
step in to support a failing subsidiary,”
he continues. “They seem more prepared
now to let them fail.”
CONTINUES OVERLEAF
The recognised standard in credit management
www.cicm.com April 2015 21

TRADE CREDIT INSURANCE PART ONE
CONTINUED
The trend towards pre-pack
administrations is also a concern and
again making the headlines. The failure of
USC, the fashion brand owned by Sports
Direct billionaire Mike Ashley, is a recent
case in point. Republic, another arm of
Ashley’s empire, bought the assets of
USC in a pre-pack, leaving suppliers out
of pocket and some 90 staff redundant.
It also left the media and credit insurers
scratching their heads: “When a Group
opts to pre-pack a subsidiary, it changes
the way we look at that Group,” Gerard
says. “Indeed we may no longer even
look at it as one Group for insurance
purposes, but rather more closely
examine the individual elements.”
Frédéric Bourgeois, Managing Director
of Coface in the UK and Ireland, agrees.
He describes pre-packs as ‘business
as usual’: “For some categories of risk,”
he says, “we may now take a different
approach with regards to a company’s
links to related parties. We would certainly
look more closely at groups with Venture
Capital (VC) or Private Equity (PE)
ownership, looking at their reputation
and track record in supporting group
businesses.”
Frédéric says that maintaining a
balanced portfolio is essential: “We
do not write cover for the sake of a
premium,” he explains. “We need balance
in our portfolio so that our support to
clients is sustainable, and so that there is
no risk of an extraordinary claim that puts
us in an awkward position and leads to a
knee-jerk reaction that is detrimental to
clients. You take risks, of course, but you
do not ‘bet the farm’.”
Marc Henstridge, Director of Risk
Services for Atradius UK and Ireland, is
another who agrees that recent failures,
and the abuse of pre-packs, is changing
the face of credit insurance underwriting:
“Whereas pre-packs are a necessary part
of the insolvency process, they need to
be transparent,” he says. “In the case
of USC, it appears a pre-pack was used
to allow a major Group to rid itself of
unprofitable stores, change its business
model and restructure the business and
that is not what a pre-pack is intended
for.
“This was a Group that as an insurer
we treated as a Group, a Group that we
believed would stand or fall as one. The
administration was not something that
we anticipated and the suddenness of
the actions by the directors does leave a
number of unanswered questions.”
Such examples, Marc concedes, are
rare, but tend to hit the headlines. He
has a strong view also on the failures
at City Link and Phones4U. The former,
he says, was a broken model, and its
But the collapse of Phones4U came like
a bolt out of the blue: “The company still
had significant levels of cash on the balance
sheet when it failed,” he says. “Yes it is true that
contracts had not been renewed, but there was
a long run-off period and therefore plenty of
opportunity for the directors to either re-negotiate
those contracts or devise a new strategy ...
– MARC HENSTRIDGE, DIRECTOR OF RISK
SERVICES FOR ATRADIUS UK AND IRELAND
22 April 2015 www.cicm.com
The recognised standard in credit management

In 2013 there were 10,544 credit
insurance claims totalling £171million ...
– THE ASSOCIATION OF BRITISH INSURERS.
demise could have been predicted. But
the collapse of Phones4U came like a bolt
out of the blue: “The company still had
significant levels of cash on the balance
sheet when it failed,” he says. “Yes it is
true that contracts had not been renewed,
but there was a long run-off period and
therefore plenty of opportunity for the
directors to either re-negotiate those
contracts or devise a new strategy. They
had a huge store portfolio and so many
options available to them, but it was
as if they simply threw in the towel and
accepted defeat. We certainly could not
have foreseen that style of management.”
Marc is understandably disappointed
that Phones4U did not appear to have
a ‘B’ Plan. His disappointment is even
more understandable given the losses
that Atradius suffered as a result: it had
to pay out the largest value of claims in
the company’s history of operating in
the UK. On the positive side, however,
he is content that several major UK firms
were protected, and that the value of
credit insurance, and the importance
of Retention of Title (RoT), was
demonstrated.
The major failures of recent times
have undoubtedly resulted in a change
in the claims landscape: Euler Hermes,
for example, has seen the volume of
claims fall, but the value of each claim
rise significantly, a trend which it says
started in 2013. Despite this, credit
exposures are growing, and acceptance
rates increasing. Coface too has seen the
frequency of claims fall, reaching its nadir
in the third quarter of last year. Atradius
has similarly experienced a fall in volumes
overall, but also a marked rise in claims in
certain sectors, notably construction, and
most recently, food production.
Gerard still has concerns that the
credit insurance industry as a whole is
not growing, as premium rates are not
developing as they should: “While our
exposure goes up, the total £-premium
available has remained flat, at best, which
means that the industry is heading in the
wrong direction,” he says.
That’s not to say that Euler Hermes
isn’t trying new things. Two years
ago it opened a new ‘channel’, working
through the banks (and specifically
HSBC), and yet still the overall
number of policyholders remains a
challenge. In terms of product innovation,
Euler Hermes’ Simplicity product,
launched specifically to address the
SME market, is finding a willing audience
and introducing a new generation of
businesses to the purpose and value of
credit insurance. Demand for its ‘top up’
product – CAP – is also on the rise, and
yet another positive sign of business
growth.
Frédéric tells a similar story. Premium
rates, he says, are at best flat or reducing,
but that consistent pricing and coverage
remains paramount: “No-one wants to
go back to the time five years ago when
coverage was being slashed across the
board,” he says, “and no-one wants
to be forced into taking action that is
to the detriment of our customer base.
Rates have to be at a sustainable level
to provide the level of cover our clients
need.”
Coface has similarly seen its SME
book grow and expects that it will
grow further: “It is probably where the
opportunity for credit insurance is the
greatest,” he says. In the ‘core’ market,
sometimes referred to as the ‘national’
segment (i.e. firms of between £10 million
to £100 million turnover), Frédéric has
greater concerns. Accounts have tended
to ‘churn’, and features such as noncancellable
limits and extended grace
periods that are more usually associated
with multi-national contracts have started
creeping into the national space: “These
are good for the customer if the promises
are fulfilled,” he says, “but what happens
in a crisis we will have to see.”
Topliner, Coface’s ‘top up’ product
is proving popular, with steady monthly
volumes: “Customers like to have
choice,” he says, “and are happy to
adjust levels of cover at particular times
when they need it most. There is much
greater flexibility in the cover available
than there was two or three years ago.”
Marc agrees with Gerard and
Frederic that competition within the
credit insurance industry is increasing:
“Price pressures are on a downward
spiral, which is great news for our clients
and prospects, but not great news for
insurers,” he says. He sees competition
within the broker arena also on the
increase: “Brokers are getting stronger
and there is more competition,” he
explains. “Many new brokerages have
been launched in recent years, attracting
individuals who have either worked for a
larger broker, or come out of university
with an entrepreneurial flair, are ex-credit
insurers or bankers and are wellmotivated,
well-trained, and making a real
impact. We find that there are now three
or four brokers hunting each piece of new
business.”
Despite the competition, Marc
is pleased with the traction that a
new Atradius Single Situation Cover
product is having, and encouraged
that it is attracting new entrants to the
market almost on a ‘try before you buy’
approach. Atradius is also building on
its heritage with a new Export policy for
businesses that are new to international
trade and that need a helping hand. It also
has its own ‘top up’ product, but its plan
for 2015 is to work with its clients more
closely within an existing whole turnover
policy to provide the level of cover they
require.
And as to the future? Nobody seems
keen to rule out major failures in the
future. Indeed quite the opposite: “We are
in a period of ‘volatile volatility’, to coin a
phrase from a leading investment bank,
during which the unexpected should
become the expected, and to occur more
often,” Frédéric concludes.
TRADE CREDIT INSURANCE PART ONE
The recognised standard in credit management
www.cicm.com April 2015 23

OPINION
HOLDING A GRUDGE
Andy Moylan, Managing Director, EFCIS Trade credit insurance brokers, winners of a CICM
British Credit Award, looks at how credit insurance can move from a grudge purchase to a
business builder.
AS an industry we have not been
proactive in assisting insured
clients in drawing their attention to
the many tangible and measured
benefits of their policy. Understandably
a good proportion of credit managers
and finance directors look upon credit
insurance as a grudge purchase.
Yet a well-managed policy will deliver
a measurable return that may justify the
premium paid. But, it’s the responsibility of
a specialist trade credit broker to work in
partnership with their clients, helping each
one realise the many business specific
benefits of trade credit insurance. Yet the
default position of Trade credit insurance
has been to sell on fear.
Whilst cover can provide comfort
because it will protect your business from
the effects of an insured bad debt, credit
insurance offers so much more than the
blindingly obvious. Not least it protects
your largest company asset; your sales
ledger.
So, what are the compelling benefits
of trade credit insurance and how can
they help a credit manager in managing
and supporting their many challenging
everyday risk decisions to support growth?
Additional resource
Credit managers are faced with making
difficult risk decisions. They’re regularly
under pressure from sales departments
to agree credit lines to support business
growth. But the information they need to
support these decisions is often limited or
outdated, especially so for export sales.
A company with credit insurance
benefits from an additional debtor risk
resource; these credit limits are assessed
by an experienced risk underwriter who
has the most up-to-date financial and
trading information available. Simply
relying on financial information that reflects
a trading position of a company at a
point in time (which typically may be 18
months old) may be insufficient to justify
large credit lines and so the sale might
be lost. A company will benefit from
current payment performance information
(as required by their policy terms and
conditions) or up-to-date management
information. This crucial information could
make the difference in justifying the credit
line required.
Credit insurance should provide cover
on customers with a measured degree
of risk and uncertainty and not simply
cover clients that are a safe bet (referred
to by underwriters as ‘blue chip’). It’s
astonishing but true that increasing sales
(with the comfort of credit insurance
cover) by £1,000,000 on net margins of 10
percent generates an additional £100,000
in profit. The ability to secure a swift and
accurate credit limit decision can make the
difference in winning the business or not.
On a monthly basis monitor the current
sales ledger balance with the endorsed
approved credit limit. Ask your broker
what support is on offer to ensure that the
current insured ledger is covered up to an
acceptable level; one that provides ledger
protection and a platform for considered
growth. Don’t unintentionally opt for the
alternative situation where you simply
hope that, in the event of a bad debt,
cover is in place.
Generating funding
Invoice financing has become a major
source of funding for many growing
companies in the UK. But the level
of available funding can be restricted
because of the low level of endorsed
credit limits. A well-managed trade credit
insurance policy provides working capital
to support the growth of the business.
A company that increases the level of
insured debt by only £250,000 could
potentially draw down an additional
£200,000 of working capital to support
growth or even pay for supplies in
advance for a discount. This additional
level of working capital could provide the
headroom needed to increase sales and
ultimately profit.
The more reassurance you can give
your invoice finance provider in respect
24 April 2015 www.cicm.com The recognised standard in credit management

Andy began his career at one of the UK'S largest trade credit insurance
underwriters, Euler Hermes over 29 years ago. After working at a senior level
for several specialist brokers he established EFCIS in 2000.
of claim payment certainity and credit
limit cover, the higher the level of funding
they will be prepared to offer you. Make
sure your funder is aware that you have an
extremely well run policy. Provide them with
regular credit limit updates and compliance
reports.
What risk?
Grading individual debtors gives you a
platform to potentially align the grade to
margins as well as collection stance. These
debtor grades can be made available by
the credit insurance underwriter within the
scope of your policy. They are based on
the most up-to-date financial information
including management accounts when
available and trading information (payment
delays and reportable adverse events).
Combined they provide a robust guide to
the individual trading risks which can then
be aligned to profit margins and collection
stance. These grades should then be
monitored and reviewed on an ongoing
basis to ensure they reflect today’s trading
position.
Consider increasing the margin for highrisk
graded debtors to generate additional
profit or to simply increase the bad debt
reserve to reflect the increased probability
of future payment default.
Also consider the potential DSO and
working capital benefit of greater alignment
to individual debtor grades with your
collection stance. Consider too proactively
chasing payment from below average
debtors. This will have a positive impact on
DSO, cashflow and ultimately profit.
More coverage
The UK Government is keen to support
increased levels of export sales to help
the UK economy recover after a prolonged
period of recession. However, it is generally
accepted that there is greater degree of
uncertainty and risk when trading with
a number of these countries due to the
increased potential of non-payment due to
a political event. A credit insurance policy
can include political risk cover such as
contract frustration, contract cancellation,
currency transfer and export/import
restrictions.
The credit insurance policy can also
cover binding orders, work in progress,
extended credit cover, non-cancellable
limits, dispute cover and trade specific
clauses for sectors such as advertising,
construction and the oil and gas industry.
With the support of your specialist
broker conduct a risk audit twice a year
to ensure that all potential risks that can
be covered are included within the scope
of the policy. Why not ask you broker to
arrange for a dummy claims inspection to
highlight any potential policy breaches and
agree what steps are required to ensure
policy compliance?
THE credit manager of an importer
and distributor of meat, with estimated
insured sales of £22 million, was
becoming frustrated with its invoice
finance provider; restricted credit limits
were impacting negatively on available
funding. The company did not have the
available working capital to grow the
business and its high fixed costs were
negatively impacting on profit. Key
credit limits were increased by £2.2
million resulting in increased working
capital to support future growth and
profit.
This additional working capital
assisted the company in securing
£6 million additional sales during the
course of the year at four percent net
margins, generating £240,000 profit (the
policy premium was £70,000).
A vehicle leasing and contract hire
company had an initial DSO of 193 days;
understandably this was having a dire
impact on working capital and profit.
Its credit insurance policy provided
individual debtor grades (including
highlighting the riskier debtors). Not only
was the company not being paid by a
number of its customers, but it
was also at risk of claims on its
policy being refused because it was
not complying with the insurer’s
requirements.
The company now has a higher
percentage of insured sales on its
ledger and the DSO has reduced from
193 days to 59 days. This level of
DSO an improvement combined with
the improved credit insurance policy
compliance has resulted in a £5.5 million
improvement in cash utilisation freed
up from its receivables, combined with
a decrease in inherent risk. It also has
the added benefit of peace of mind from
improvement in trading certainty through
limit utilisation and increased policy
compliance.
CASE STUDIES
THE credit manager of a major IT
distributor wanted to supply goods on
credit to a number of overseas markets,
but was struggling to obtain financials to
support potential sales of £7.5 million.
There was also concern that in the event
of a payment default it did not have
a local presence in these markets to
collect the debt.
The company commenced trading
with the full support of the underwriter
from a risk, cover and collection point of
view and generated additional sales of
£4.7 million in 12 months and additional
net profit of eight percent (£376,000)
was generated. The policy premium was
£110,000.
However, one of its overseas
customers was unwilling to pay the
amount due. It used the fact that it was
insured as leverage to secure payment.
Its customer did not want its grade to
be adversely affected, nor to be on
the receiving end of collection and
legal action. At all times during these
discussions the company knew that
in the event of a bad debt they were
insured for 90 percent of the insured
debt.
The recognised standard in credit management
www.cicm.com April 2015 25

CONSUMER CREDIT
CONSUMER CREDIT ROUNDUP
Amanda Hulme gives an overview of all the goings on in the world of consumer credit.
IN BRIEF ...
STATISTICS RELEASED
THE Building Societies Association
(BSA) has released mortgage lending
statistics for 2014 showing that building
societies provided 26 percent of all mortgage
lending in the UK with gross lending of
£52.6 billion during the year, out of a total
of £204.4 billion lending by all mortgage
lenders. This performance, the BSA says,
was well above the sector’s more natural
market share of 19 percent. Over the year
societies approved mortgage loans to over
373,000 homebuyers. The BSA reckons that
competition will be stiff in 2015, especially
now that an increase in the bank base rate
this year looks to be out of the question,
even to the point of the Bank of England
stating that a drop in the rate, whilst unlikely,
is a tool that will be used if necessary.
BBA PUBLISHES STAFF BRIEFING
THE BBA has published the first of what
will be a series of briefings on vulnerable
customers. The purpose is to identify
best practice for banks and allow them
to develop effective policies towards this
group of customers. This briefing concerns
how to support customers with long-term
conditions (LTC) (defined as a physical or
FOLLOWING consultations last year, HM
Treasury has confirmed that the Bank of
England’s Financial Policy Committee
(FPC) is to have new powers over the
housing market with a view to protecting
financial stability. Rather than just making
recommendations as at present, the
FPC will be able to set limits on debt to
income ratios and loan to value ratios for
mortgages.
mental illness that lasts a year or longer
and that may require ongoing care, support
and treatment) and the ‘‘good outcomes”
that banks and their staff should seek
to achieve, such as establishing clear
procedures for gaining consent to store, use
and share information about a customer’s
diagnosis and LTC.
FPC NEW POWERS OVER MORTGAGES
Proposed legislation has been published
by the government which intends to
consult separately early in the new
Parliament on the FPC’s recommendations
for it to have new powers over the
buy-to-let market, with a view to building
an in-depth evidence base on how the
operation of the UK buy-to-let housing
market may carry risks to financial
stability.
26 April 2015 www.cicm.com
The recognised standard in credit management

Amanda Hulme is a partner in the corporate department of
Addleshaw Goddard LLP.
amanda.hulme@addleshawgoddard.com.
CML ON REPOSSESSIONS AND MARKET TRENDS
THE Council of Mortgage Lenders (CML)
has published figures showing that the
number of homes repossessed in 2014
dropped by 26 percent compared to
2013, and was lower than any time since
2006. Moreover, at the end of 2014 the
number of mortgages in arrears was at
its lowest since 2006. Out of the 21,000
repossessions, 16,100 were on owneroccupied
properties, and 4,900 were on
buy-to-let properties.
The figures also saw fewer mortgages
in arrears at the end of 2014 than at
any time since 2006. 1.05 percent of all
mortgages were in arrears equivalent
to 2.5 percent or more of the mortgage
balance - down from 1.29 percent at the
end of 2013 (and 1.12 percent at the end
of the third quarter of 2014). In numerical
terms, this equates to 116,800 loans -
down from 124,400 at the end of the
third quarter, and 144,600 at the end of
2013.
The CML notes that the two main
traditional drivers of mortgage difficulty are
income shocks (such as unemployment)
and interest rates. Both factors are
relatively benign at present, assisting
the welcome decline in both arrears and
repossessions, supported by effective
lender practices.
The CML has also published data on
the characteristics of the UK mortgage
lending market, broken down for the
periods of December, the fourth quarter
and annual data for 2014. Residential
lending to homebuyers rose slightly
month-on-month in December totalling
55,600 loans. In contrast, remortgage
activity declined month-on-month in
December with the number of remortgage
loans totaling 22,300.
Overall for 2014, homeowner house
purchases totaled 676,900 loans, up 11
percent on 2013 and the highest annual
lending level since 2007. This meant
£112.7 billion was advanced in total in
2014 for house purchase, up 19 percent
on 2013 and again the highest annual
value since 2007
IN BRIEF ...
LSB MAKES
PRE-ARREARS
RECOMMENDATIONS
THE Lending Standards Board (LSB) has
carried out a review and published its
findings into pre-arrears handling which
makes recommendations to strengthen
the Lending Code. The review assessed
the adequacy of processes and controls
to identify the early warning signs of
financial difficulties. While all firms
sampled provided general advice and
guidance (say via websites/leaflets etc.)
only one took pro-active steps towards
customers in difficulties pre-arrears.
Most activity by firms was reactive where
customers were on the cusp of financial
difficulties. Among the proposals are
a separate pre-arrears section in the
Code to give more prominence to these
requirements with details of general
support to be afforded to customers.
Concrete proposals to revise the Code
are expected in Autumn 2015.
The recognised standard in credit management
www.cicm.com April 2015 27

OPINION
THE DNA OF A
CREDIT MANAGER
Karen Young looks at what it takes to be a
successful credit manager.
IN a world where cash continues to
be king, arguably there has never
been a better time to work in credit
management. As the opportunities
available to talented and ambitious
individuals in the credit profession grow,
how can you put yourself in the best
position to capitalise on such opportunities?
For our new report, ‘DNA of a Credit
Manager’, we surveyed over 500 credit
managers to find out what qualities unite
them, and what advice they have for the
next generation of credit managers.
What those who have reached the
top have in common is commercial nous,
good people management skills and
positive, pro-active relationships with their
colleagues in sales and the wider business.
Here’s what their responses mean for the
next generation of credit leaders.
Invest in your own development
There is growing recognition of the value
of professional qualifications in credit,
so enrolling in these studies is a wise
investment. Almost half of the credit
managers we surveyed were MCICM
qualified, and a further 10 percent held the
CICM Level 2 Certificate, 12 percent the
Level 3 Diploma, five percent FCICM and
three percent had an MBA.
Credit managers under 40 were more
likely to have taken on further formal
qualifications in the past two years than
over 40s. We believe that this is in part
due to credit leaders advocating over the
last few years that their teams focus on
personal and professional development,
and of course leading from the front.
Most employers do not require
qualifications as essential criteria for a job in
credit, however they are increasingly listing
them as desirable on job specifications.
Credit managers also showed the appetite
to build strong networks to progress their
careers, with almost half attending industry
networking events and a third networking
with other credit managers online.
Develop your relationship with sales
The relationship between credit managers
and sales is crucial, but complex. Nearly
two fifths of respondents to our survey said
that the sales team was the most important
department for them to partner with. So
it is important to get them on side by
communicating with them clearly, fairly and
regularly.
Find opportunities to raise the profile of
the credit team with the sales force, and
help create opportunities for them by using
your information to direct them towards
good prospects and steer them away from
risk.
Develop commercial skills
Hone your commercial skills by
understanding business needs and your
role in the big picture. Understanding and
achieving company objectives is essential
for credit managers, and over half (53
percent) of credit managers said this would
be their biggest professional challenge over
the next 12 months.
Almost two thirds (62 percent) of
our credit managers said that being
commercially aware was their top tip for the
next generation of credit managers, along
with getting involved with operations teams
and not focusing purely on the numbers (53
percent).
Develop people management skills
Over half (56 percent) of credit managers
gave developing people management skills
as their top tip for the next generation of
credit managers. As 53 percent of credit
managers managed teams of up to six
people you will need to become skilled at
motivating and managing others, whether
celebrating success or managing under
performance.
Be ambitious
Credit managers are ambitious and
committed to the profession, 39 percent
said they were aiming for a more senior
role within credit management whilst many
already enjoy the job they do and are very
content to keep doing it, having already
reached their goals.
As an encouraging 69 percent of credit
managers said that if they could start their
career again, they would still choose to be
a credit manager, today’s ambitious credit
professionals have a lot to look forward to.
For more information visit: hays.co.uk/dna/
credit-manager
Karen Young is Director for Hays
Accountancy & Finance in the UK. She
has 17 years of recruitment experience
and leads a team of 400 accountancy and
finance recruitment professionals.
CREDIT MANAGEMENT
CM
28 April 2015 www.cicm.com
The recognised standard in credit management

THE PERFECT VENUE FOR THIS YEARS
CICM FELLOWS’
LUNCH 2015
june 12, 2015 In association with MoretonSmith
The Stationer’s Hall
Ave Maria Lane, London, EC4M 7DD
Includes an enlightening talk and tour of the Hall
Tickets for this event are £110 + VAT per person. If you would
like to book a seat or table, please email fellowslunch@cicm.com
or call Becki Sharpe on +44 (0)1780 722902.
The recognised standard in credit management
www.cicm.com April 2015 29

HR SPECIAL
FEATURE
SPECIAL
FOLLOW MY LEADER
In the second of a new series, Vicky Bailey of Delphinus tmc
considers the benefits of being a proactive and reactive leader and
which style is more effective.
HOW can you tell whether you have
an inherently proactive or reactive
style, and is either of them better
suited to a successful business
environment?
In recent years there has been a real
shift in businesses looking for their staff to
have a more proactive approach to working.
Bosses have been taking a longer-term
view on how they run their business and
they now expect the same proactivity
from their staff. The employees who have
a naturally reactive style could then be
potentially overlooked; so is this a good
thing for our current business climate?
As individuals we all have the ability
inside us to be both proactive and reactive,
so could it just be a case of allowing
ourselves to use both skill sets, and
knowing when one would be better than the
other?
First it is important to fully understand the
characteristics of both styles:
Reactive: being reactive means you
have the ability to handle pressure that
comes your way in real time. Reactive
leaders are also renowned for wanting to
solve problems on their own and take the
responsibility for it on their own shoulders.
Other characteristics include quick
thought processes which are logical and
planned to turn tasks around in the here
and now. Often known as ‘firefighting’,
there is very little long-term planning or
forward thinking involved. Reactive thinkers
find it easy to make snap decisions as this
style does not lend itself to analysing what
might be required sometime in the future.
A reactive style can be very stressful to
live with, as it often means having to deal
with a continuous string of problems. It can
be quite difficult to motivate a team if they
are all reactive employees.
On the positive benefit side, a reactive
leader and workforce is exactly what you
need to ensure the business can survive the
short-term issues and look forward to its
future opportunities.
Proactive: This requires a different mindset
and skills, because when you don’t
know what is round the corner; forward
thinking and confidence is a necessity to
figure out what needs to be achieved and
then how to achieve it. By creating the
groundwork, proactive people can run when
others are just starting out because they
have given themselves the time and space
to analyse each decision.
A forward-thinking approach can have
its benefits, especially where motivating
people are concerned. It has been said that
this style is very infectious as once one
person is proactive others want to follow.
The downside of this approach is that
looking into the future can sometimes take
your eyes off the here and now and in times
of crisis, this would not be a good thing. As
George Bernard Shaw once said:
“People are always blaming their
circumstances for what they are. I don’t
believe in circumstances. The people who
get on in this world are the people who get
up and look for the circumstances they
want, and if they can’t find them, make
them.’’
So which characteristics are most
beneficial to business? In essence you need
both! A truly proactive person does not
always have an eye on what is happening
in the present. They are constantly looking
to the future. This can be a very rewarding
skill but the present needs to be handled
correctly too.
It is important to be flexible in your
working approach and often it is a
balancing act. If you can create a team
with an equal mix of proactive and reactive
members then you are sure to succeed.
Your team will be able to take action in the
short term, and plan for the future.
So, understanding the pros and cons, it
is time for you to ask yourself which style
you would say you are best suited to?
Can you identify a style you naturally lean
towards? It is also important to consider
whether you are susceptible to change.
Can you honestly say you could bend to
meet the needs of the business?
Our word of the day is: Ownership – you
are the driving force for how you behave in
the workplace. Be confident in your skills
set and make sure you can adapt to the
changing nature of today’s business…
For further information on how Delphinus
tmc can help your team win please
contact Vicky Bailey on 01509 215872 or
email vicky@delphinustmc.co.uk
30 April 2015 www.cicm.com
The recognised standard in credit management

“People are always blaming their circumstances for
what they are. I don’t believe in circumstances.
The people who get on in this world are the people who
get up and look for the circumstances they want, and if
they can’t find them, make them.’’
– GEORGE BERNARD SHAW
Ownership – you are the driving force for
how you behave in the workplace. Be confident
in your skills set and make sure you can adapt to
the changing nature of today’s business…
– VICKY BAILEY
The recognised standard in credit management
www.cicm.com April 2015 31

THROUGH THE LENS
ROYAL CELEBRATION
The Queen's Representative, current and former
Presidents, Fellows, Chairs and other VIPs gathered
for the formal unveiling of the Royal Charter.
MORE
PHOTOGRAPHS
CAN BE VIEWED
AT CICM.COM
32 April The recognised 2015 www.cicm.com
standard in credit management
The www.cicm.com recognised standard in credit April management 2015 27

The recognised standard in credit management
www.cicm.com April 2015 33

CONSUMER CREDIT
HOUSE RULES
Rosanna Bryant considers the treatment of mortgage customers who fall into
arrears in the light of recent FCA findings.
MORTGAGE businesses are
undergoing significant regulatory
change. Spring 2014 saw the
introduction by the Financial
Conduct Authority (FCA) of new rules
deriving from the Mortgage Market Review
and providers are now preparing for the
implementation of the Mortgage Credit
Directive.
We have also seen two recent
enforcement cases relevant to mortgages.
RBS and NatWest were sanctioned in
August 2014 – for failings in respect of
the suitability of advice given to mortgage
customers and, in a separate case, last
October, Yorkshire Building Society (YBS)
was found not to have treated customers
fairly who were in arrears. The FCA
selects cases for enforcement, in part, to
communicate to the industry and public
its priorities and expectations of firms’
conduct.
So what is the FCA’s approach to the
issues of suitability of advice and arrears
management and what are the themes
arising from these cases?
Fair treatment
At the heart of the FCA’s findings in respect
of arrears management and suitability of
advice is treating customers fairly (TCF).
As an FCA paper, Journey to the FCA,
explains, TCF and the six TCF consumer
outcomes are core to how the FCA expects
firms to treat their customers. There is a
specific outcome for suitability of advice
namely, ‘where consumers receive advice,
the advice is suitable and takes account
of their circumstances.’ In the RBS and
NatWest final notice it was ‘of critical
importance that firms providing mortgages
do so in a way that ensures customers
are treated fairly and in a manner which is
compliant with all regulatory requirements.’
Customers rely on professional advice and,
therefore, any mortgage recommendation
must be suitable to their personal
circumstances.
The application of TCF and the six TCF
outcomes to arrears management is less
clear, but a central concept for firms is to
act in their customers’ best interests. The
fair treatment of customers is regarded
by the FCA as particularly important.
A customer’s best interests require a
lender to be pro-active. In the FCA’s view,
to do otherwise and let arrears, charges
and interest be built up is not to treat a
customer fairly. Moreover, if there is an
inadequate quality assurance regime, one
of the consequences is that management
information can be insufficient to determine
if the system is producing unfair outcomes.
Mortgage customers are frequently
seen as being ‘vulnerable’ in consequence
of their financial difficulties. Their arrears
may be linked to unemployment, divorce
or illness. The FCA defines a vulnerable
customer widely as ‘someone who, due to
their personal circumstances, is especially
susceptible to detriment.’ A proactive
approach by well-trained staff with ‘high
quality conversations’ in the context of a
properly resourced service is essential. If
arrears management is outsourced it is
especially important to see that a contractor
treats potentially vulnerable customers
properly. The issue of vulnerable customers
is in regulatory focus at present with the
FCA’s recent publication of an occasional
paper on the topic.
Arrears management
An FCA Thematic Review (TR14/3) in
February 2014 acknowledged that arrears
management had improved in firms since
2009. Mortgage lenders though were urged
to focus on delivering consistently fair
outcomes for customers based on their
individual circumstances. Lenders were
called upon to better support and empower
customer-facing staff and to be more
flexible in their fair treatment of individual
customers based on their circumstances.
The Mortgages and Home Finance:
Conduct of Business sourcebook (MCOB)
13.3 requires firms to make reasonable
efforts to reach agreement with customers
over the method of repaying any shortfall
and to allow a reasonable time to do so.
In particular, they should establish, where
feasible, a payment plan that is practical in
terms of the customer’s circumstances. In
applying this rule, the FCA expects lenders
to inquire into the individual circumstances
of each customer to identify the cause
of their payment difficulties. It is also
necessary to assess a customer’s income
and expenditure sufficiently, including their
financial prospects, such as employment
opportunities.
What is not acceptable is for firms to
agree ad hoc payments without adequately
considering the impact on a customer’s
debt and the totality of payment options
available. Nor should they let time pass with
increasing arrears, interest and charges.
Moreover, while repossession cannot
be sought unless all other reasonable
34 April 2015 www.cicm.com
The recognised standard in credit management

Mortgage customers are frequently seen as being ‘vulnerable’ in
consequence of their financial difficulties. Their arrears may be linked
to unemployment, divorce or illness. The FCA defines a vulnerable
customer widely as ‘someone who, due to their personal
circumstances, is especially susceptible to detriment ...
– ROSANNA BRYANT
should take reasonable steps to obtain
from its customer all information likely to be
relevant for the purpose of giving advice.
The FCA found that the banks’ processes
for assessing affordability were inadequate
in that they had not considered the full
extent and implications of a customer’s
budget and additional committed or future
expenditure when making a personal
recommendation. In relation to the length
of the mortgage term, the banks were
criticised for accepting their customer’s
preference without assessing (as required)
its appropriateness.
Crucially, firms must be able to evidence
suitability as required by the rules on record
keeping. According to the FCA, only a small
percentage of the banks’ sample mortgage
applications reviewed contained sufficient
information to evidence the basis of the
recommendation and to show that it was
suitable. Whether the advice given was
suitable is of little help, if no record is kept.
attempts to find a solution have failed, the
FCA considers that, especially in cases
of long term unaffordability, this step may
be in a customer’s best interests and that
excessive forbearance will only cause
additional detriment by increasing the sums
outstanding. Firms must therefore proactively
engage with customers, identify
the problem, the prospects for payment
and develop a plan suitable to their
circumstances.
Suitability of advice
MCOB 4.7A provides that firms must ensure
that any mortgage recommendation is
suitable for that customer. The importance
of this requirement is reflected by the fact
it is also a high level rule within the FCA’s
Principles for Businesses. Principle 9 states
that: ‘A firm must take reasonable care to
ensure the suitability of its advice …’
The RBS and NatWest final notice is a
reminder that to fulfil this obligation a lender
Systems and controls
The need to have adequate systems
and controls with properly trained and
competent staff, underpinned with sufficient
resources is clear from these enforcement
cases. These weaknesses contributed to
the primary failings in arrears management,
suitability of advice and complaints
handling. By way of example:
•
the key assurance function at RBS and
NatWest responsible for reviewing,
assessing and remediating advised
mortgage sales did not operate effectively
with a knock on effect on the value of
management information;
•
YBS’ arrears handling policy
documentation provided insufficient detail
to staff, was fragmented and incomplete
(there being no policy towards noncooperative
customers);
•
RBS and NatWest failed to provide staff
with adequate training to support them
in changes to the sales process with
the result that improvements were not
embedded;
CONTINUES OVERLEAF
The recognised standard in credit management
www.cicm.com April 2015 35

CONSUMER CREDIT
CONTINUED
•
the response of RBS and NatWest to
concerns raised by the FCA was said to
be ‘poorly planned, under-resourced and
not subject to adequate oversight and
governance’;
•
YBS staff needed to be adequately
trained, sufficiently skilled and provided
with appropriate guidance to ‘proactively
engage with ... customers to ascertain
the cause of their payment difficulties and
their future financial prospects’;
•
YBS moved customer facing staff to
oversight and quality assurance duties
without replacements, thereby increasing
delays in contacting customers in
arrears which the FCA viewed as unfair
treatment;
•
senior management at RBS and NatWest
were absent from the working group
tasked to address the issues raised, and
managers delegated to their juniors. The
FCA concluded that no senior manager
had taken responsibility and there had
been little meaningful challenge or
scrutiny of the group’s work;
•
weaknesses in quality assurance and the
provision of management information
contributed to a slowness to implement
improvements at YBS and was viewed
by the regulator as an aggravating factor
when considering the seriousness of
these failings.
Complaints and redress
It is essential to have in place effective
and transparent procedures to handle
complaints under FCA Dispute Resolution:
Complaints manual (DISP) 1.3. The
YBS final notice reminds all firms that a
customer need not necessarily use the
word ‘complaint’, but it can be any oral or
written expression of dissatisfaction about
a firm’s financial services. There must also
be an assertion that the customer has
suffered financial loss, material distress or
inconvenience. This means that staff need
to be trained to identify and acknowledge
customer complaints, otherwise they may
go unrecorded and un-investigated.
The FCA found, for example, that one
YBS customer had repeatedly complained
that the sale process was too slow, causing
her distress and depression. Apart from
the failure to comply with complaints
handling rules, senior management need
the management information generated
from complaints data to inform them in the
exercise of their responsibilities. Complaints
information brings failings in processes and
procedures to the attention of managers
allowing corrective action to be taken.
Where failings occur, any remediation
and redress provided, particularly if
voluntary, will be relevant to the FCA’s
assessment of an appropriate sanction.
The RBS and NatWest final notice views
as a mitigating factor that both banks
agreed to contact customers to identify and
address any customer detriment arising.
In relation to mortgage arrears that were
incorrectly applied to customer accounts,
YBS voluntarily refunded all administration
fees over a five-year period. While redress
often exceeds the amount of the fine, and
for YBS was expected to reach £8.4 million
in respect of 33,000 plus customers, it
received credit (albeit unquantified) for
taking steps to proactively compensate and
for having done so in a transparent manner
by posting details on its website.
Key lessons
Senior management and compliance, to
the extent they have not already done so,
should review product life cycles from the
perspective of customers and test them
against the six TCF outcomes. They should
also consider whether certain customers
might be vulnerable and what adjustments
should be made to ensure they are treated
fairly.
Staff need to pro-actively engage with
customers in difficulties or arrears, identify
the problem, the prospects for payment and
tailor solutions to their circumstances which
may include repossession. And where
appropriate, ensure staff obtain sufficient
customer information to provide advice
Staff need to 0
pro-actively engage with
customers in difficulties
or arrears, identify
the problem, the
prospects for payment
and tailor solutions to
their circumstances
which may include
repossession ...
– ROSANNA BRYANT
tailored to their circumstances.
Firms should check that processes and
procedures are in place to demonstrate that
regulatory requirements and standards have
been met. At the same time firms should
confirm that management information is
being collected during the product journey,
and in particular, that complaints are
identified and their value as a management
tool is recognised and acted upon.
Where failings are identified, whether
from internal processes or externally (e.g.
an FCA supervisory visit), remedial action
(providing redress) should be taken with
sufficient resource allocated and senior
management ownership.
Senior Management Accountability
Senior management should also be alert
to the increasing risk that they may be
held personally accountable. The FCA’s
Statement of Principles for Approved
Persons, for example Principles 6 and 7,
require those exercising significant influence
functions to exercise due skill, care and
diligence in managing the business for
which they are responsible and to take
reasonable steps to ensure that it complies
with the requirements and standards of
the regulatory system. Enforcement action
has recently been taken against former
executives at Swinton Insurance who failed
to consider customers’ best interests and
treat them fairly.
Rosanna Bryant is a Partner in Addleshaw
Goddard’s Financial Services Group.
rosanna.bryant@addleshawgoddard.com
36
April 2015 www.cicm.com
The recognised standard in credit management

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The recognised standard in credit management www.cicm.com April 2015 37

PAYMENT TRENDS
ON THE RIGHT TRACK
Jason Braidwood MCICM(Grad), Head of Sales Ledger Consultancy at Creditsafe Business
Solutions, analyses the latest monthly business-to-business payment performance statistics:
WELL St Valentine appears
to have helped spread the
love during February with
improved payments throughout
the country and across most industry
sectors, according to our monthly
analysis of Creditsafe’s trade payment
data databases. By the end of the month,
average days beyond terms had taken a
turn for the better with an improvement of
more than one and a half days, and they
are now standing at a UK average of 16
and a half days. While it’s good to see
this move in the right direction, this is still
nothing to be proud of and we can only
hope that spring will see this positive trend
continue to improve. As ever, it’s good to
take a clear focus on the varying trends
between industries and regions to help you
prioritise your collection targeting.
INDUSTRY SECTORS
When we look at the sectors it’s interesting
to note that business support in general
appears to be slipping back with
Professional and Scientific and Business
Admin and Support heading our list of
worsening sectors – a noticeable step back
for the latter from January. However, when
we look at the sectors with the poorest
performance overall, we should perhaps
be worried by the continuing late payment
trends in Manufacturing Transportation and
Agriculture – all big important economic
sectors in the heart of the ‘real economy’
with a wider impact and all continuing to
pay well over 20 days beyond terms.
On the more positive side, Water and
Waste has certainly pulled itself back
with a major improvement to once again
reinforce the better performance of the
Utilities sector as a whole who continue to
dominate the ‘prompter payers’ section of
our analysis.
REGIONS
The good news on improving payments
appears to be fairly well spread around the
country in a reverse of January’s position,
with only Yorkshire and Humberside and
East Anglia showing a worsening
position. Given that East Anglia is one
of the better regions that seems almost
forgivable – although the Yorkshire and
Humberside performance does stand
out against the rest of the country. Big
improvements in the East Midlands and
Scotland were encouraging, and it is very
welcome to see London back up the
list of prompter paying regions given its
importance to the economy as a whole.
The disappointing performance from
Yorkshire and the North West doesn’t quite
point to a North-South divide, however,
with the South West also fairly static in
its performance at over 18 days beyond
terms.
Jason Braidwood MCICM(Grad)
Head of Sales Ledger Consultancy at
Creditsafe Business Solutions
38 April 2015 www.cicm.com
The recognised standard in credit management

Sector
Getting Better
Water & Waste
-11.7
Wholesale/
Retail
-8.4
Real Estate
-8.3
Getting Worse
Professional
& Scientific
+10.6
Business Admin
& Support
+5.5
Business
From Home
+4.2
Top Five Prompter Payers
Bottom Five Poorer Payers
Sector Feb 15 Change on Jan 15
Wholesale/Retail 6.7 -8.4
Mining & Quarrying 11.7 -2.8
Water & Waste 11.8 -11.7
IT & Comms 12.0 +0.5
Energy Supply 12.2 -1.7
Sector Feb 15 Change on Jan 15
Professional & Scientific 26.6 +10.6
International Bodies 23.0 +0.1
Manufacturing 22.6 -1.3
Agriculture 20.8 -0.9
Transportation 20.7 -0.8
Region
6 5 4 3 2 1 0
0 1 2 3 4 5 6 7 8
Getting Better
Scotland -6.4
North West -2.8
+5.0 Yorkshire & Humberside
West Midlands -4.0
Scotland
16.6 DBT
East Midlands +7.3 -13.2 East Midlands
+3.0 East Anglia
Wales -3.5
South West -0.2
South East -3.6
Northern
Ireland
17.5 DBT
North West
19.6 DBT
Yorkshire &
Humberside
22.5 DBT
London -2.9
Northern Ireland -0.4
Getting Worse
Wales
17.1 DBT
West
Midlands
16.6 DBT
East
Midlands
9.2 DBT
East Anglia
12.9 DBT
South West
18.5 DBT
London
12.9 DBT
South East
16.2 DBT
Top Six Prompter Payers
Region Feb 15 Change on Getting Jan 15 Better
East Midlands 9.2 -13.2
London 12.9 -2.9
East Anglia 12.9 +3.0
Getting Worse
South East 16.2 -3.6
Scotland 16.6 -6.4
West Midlands 16.6 -4.0
Bottom Five Poorer Payers
Water & Waste
-11.7
Wholesale/
Retail
-8.4
Region Feb 15 Change on Jan 15
Yorkshire & Humberside 22.5 +5.0
North West 19.6 -2.8
Professional
Business Admin
South West 18.5 -0.2
& Scientific
& Support
Northern Ireland 17.5 -0.4
Wales +10.617.1 -3.5 +5.5
Real Estate
-8.3
B
Fro
The recognised standard in credit management
www.cicm.com April 2015 39

MONTHLY ROUND-UP OF THE LATEST STORIES
IN GLOBAL TRADE BY ANDREA KIRKBY.
NEWS IN BRIEF
EMERGING MARKETS –
BACK TO 1998?
EMERGING markets, for a long time
the main motor of global growth, have
recently showed signs of stalling. But
Coface says although several countries
– Russia, Venezuela, Argentina – are now
in crisis, there's little likelihood of a rerun
of the 1998 emerging markets crash.
Countries learned from that
experience, and now have more robust
public finances, and banks with better
balance sheets - plus in many cases
significantly higher reserves of foreign
currency.
As always, you need to do your
research on whatever country you’re
exporting to. But the chances of an allout
crash in the emerging markets seem
more limited this time round – as long as
China doesn't fall out of bed.
NEGATIVE YIELDS
NESTLE’S Euro denominated 2016 bond
recently traded at a zero yield. In fact,
better than that; it traded at a negative
yield of 0.002 percent. If you want to
lend money to Nestle, you now have to
pay for the privilege.
That seems crazy. And I do wonder
if the financial markets are storing up
some real pain if interest rates rise. (The
Swiss franc has already bankrupted the
US’s largest forex trader – and that’s a
far smaller market than the eurobond
market.)
But it does mean unless you’re
running very large risks, you should be
getting a good deal on your bank loans.
Banks love customer inertia – they make
half their money out of it. So remember
to run your eye over your financing
options and make sure you're getting the
best rate you can.
OIL COMPANIES ARE THE NEW LEHMANNS
AFTER the credit crunch, it took a while
until we started seeing the pain coming
through from property companies. With
their properties revalued downwards, many
of them were in breach of their banking
covenants; some rescheduled successfully,
others went to the wall.
We’re now seeing the results of the
fall in the oil price on oil exploration and
production companies. Many of them
have asset-backed finance based on the
value of their oil in the ground – Reserve
Based Lines. As the oil price sinks, the
value of those reserves falls, too - and
so does the company’s borrowing
ability.
So far, the banks are looking supportive.
EXCO has seen a 20 percent fall in its
resource value, but the banks have
worked around it. But if you export into
the oil sector – whether you're supplying
machinery and survey services, or catering
and security – you need to keep on top of
the news, because the risk is beginning
to mount. What looked like a conservative
balance sheet this time last year could be
dangerously stretched by now - even for
profitable, producing companies.
TWO DIFFERENT INDICES, TWO DIFFERENT STORIES
I'VE just taken a look at two very different
charts. One is the FTSE-100 index. The
other is the Baltic Dry Index.
The FTSE is trading at an all time high.
The Baltic, on the other hand, is at a 29
year low having lost more than 60 percent
in the last year.
The thing that makes me worry is that
the Baltic has always been a pretty good
lead indicator of global trade. Maybe less
CHANGING TIMES IN VIETNAM
VIETNAM is changing. It’s been moving
up for a while now from a low cost labour
economy into higher value areas. It’s
also highly export driven, with textiles,
footwear, and now increasingly electronics
and technology, performing strongly, and
that makes it a large market for capital
goods. Not bad for a country still run by a
Communist government.
Foreign direct investment has been
fuelling the economy, with South Korea one
of the biggest investors. Coface has a C
assessment on the country, but that's now
so these days, as higher value freight no
longer goes by ship; but it still makes me feel
cautious about the frothy assumption that
recovery is going to continue.
It's also worrying because it means
shipping and port companies are seeing less
and less income from their activities, and
that's sure to put strain on their finances
despite a bit of help from lower fuel prices.
Watch out for credit quality in those sectors.
on positive watch, and the credit agencies
upgraded their ratings in November last
year. GDP growth is five percent plus,
inflation has been tamed, and the only fly
in the ointment is a rather tattered looking
banking sector.
As well as capital goods, infrastructure,
energy, and education are all potential
targets for British exporters.
Watch out, though: the Vietnamese dong
is pegged against the dollar, but as we’ve
seen with Switzerland, pegs can come
unstuck.
40 April 2015 www.cicm.com The recognised standard in credit management

INTERNATIONAL TRADE
ASEAN TO AEC
NEWS IN BRIEF
SOUTH East Asian countries are working
towards open trade – a single market
across the region by the end of 2015. The
ASEAN Economic Community (AEC) could
transform prospects: expected growth of
five percent across the region this year
could be dramatically increased as tariff
barriers disappear.
Don't hold your breath though. It's
not at all clear whether all the constituent
countries are ready for the change; some
protectionist opposition has emerged, and
there are rumours that implementation
could be delayed.
However, the long-term plan is still for
closer economic union – which means if
you're trading in any of the constituent
countries, you need to think about what
it will mean for you. There will be some
threats – but equally, there could be the
opportunity to become a major regional
export player.
GREXIT AVERTED?
NEGOTIATIONS between the new Greek
government and its Eurozone peers have
ended not in a standoff, not in a real deal,
but in a four-month extension of provisional
arrangements.
Things were getting pressing: first of
all because the Greek government has
no liquidity left. The tax take has shrunk –
many Greeks are simply not paying their
taxes, and the economic situation means
there’s not much income or profit to tax
– and the Government may not be able
A recent US court case saw American
candy giant Hershey's block the import of
UK made confectionery – on trademark
grounds.
Hershey's said the confectionery,
particularly its packaging, was too close to
the candy that Hershey’s makes in the US
under licence from Cadbury’s. (More cynical
observers note that ‘chocolate’ in the US
only needs 10 percent cocoa content,
whereas UK ‘chocolate’ has to be at least
NO SWEET DREAMS
to continue paying pensions or wages.
after Secondly, because Putin is sticking
his finger in by offering his own deal, and
making a purely Eurozone affair into a
major international ignition point.
Predictions of a Grexit were wide of
the mark. But the country only has four
months and it’s back to the negotiating
table. If you’re exporting to Greece,
you need to be very careful about what
currency you get paid in, and when exactly
you get paid.
20 percent.)
That is a warning to exporters – do
your research properly; even if you’re
exporting goods with valid trademarks in
the UK, there could be a clash with local
businesses.
(And for the record, there is only one
US confectionery product that is really
worth seeking out: Reese’s Peanut Butter
Cups. Which as it turns out are made... by
Hershey’s).
FOREIGN EXCHANGE SPECIALISTS
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OR CALL 020 7738 0777
Currency UK is authorised and regulated by the Financial Conduct Authority (FCA).
SOCIAL MEDIA
AN interesting snippet in the trade
press was the decision by Tunbridge
Wells county court to allow a trustee in
bankruptcy to notify the bankrupt of an
order made against him by posting it on
the bankrupt's Facebook page.
That leads me to wonder whether
we're all making the best use of social
media. Have you looked up your
trade customers' Facebook pages?
Do you follow them on Twitter? Does
the CEO have an interesting life over
at LinkedIn? Sometimes, that gives
you a different perspective from the
annual report or the financial press.
Sometimes, of course, it won't be
useful at all. But it might be worth
taking a look.
Whether using a customer's
Facebook page to request an overdue
payment is a good idea remains to be
seen.
NEW FAD DIETS?
THE world is changing its diet, and that’s
creating interesting opportunities for UK
food exporters.
For instance, India – a country full
of vegetarians – is now eating more
and more meat. And the Chinese,
whose traditional diet contains no dairy
products at all, are drinking more and
more milk.
But Elmgrove Foods (the Food and
Drink Federation's exporter of the year
in 2013) has made its business out
of supplying more traditional tastes –
‘selling the unsellable,’ exporting all
kinds of offal that we don’t eat and other
people will. It started off supplying beef
and lamb to Vietnam – and now exports
to 80 different countries. Smart chaps!
The recognised standard in credit management
www.cicm.com April 2015 41

Trade Credit
Insurance Provides a
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Maximising the profit
from your sales ledger
42 April 2015 www.cicm.com
The recognised standard in credit management

SOAPBOX CHALLENGE
MANNERS MAKETH
DIGITAL
Glen Bullivant FCICM has an issue with
smartphones, or rather smartphone users.
SOAPBOX
challenge
YOU may well ask why it is that you
have not heard anything from me
for a little while, and to be honest, I
am going to tell you even if you have
not asked. Hitherto, I have always waited
for the signal from the Journal bunker and
the steer towards the subject matter as
specified by the Editorial Grand Master. The
silence being deafening, I accepted my fall
from grace with only marginal grumpiness –
until the other week, that is.
At the very splendid posh frock do in
London, me and himself exited the venue
at about the same time, me all poise and
elegance and himself, it has to be said,
looking a tad frayed around the edges.
He muttered something about having
just flown in from Dubai that afternoon
by way of explanation, though I suspect
that a glass or three of Chardonnay and
a peck on the cheek from the glamorous
co-host had done little to improve the
jet-lag recovery. “Where’s your article?” – a
command rather than a question. “What
do you want?” – a meek enquiry as I know
my place. Negotiating his way past two
security guards (who would not have been
out of place as extras in Die Hard 5), he
briefly turned his head and said: “get on
your soapbox”.
Now it is funny he should have
said that, because of late, something
has been annoying me. Smartphones.
Now before you start shouting Luddite,
Dinosaur or some such similar derogatory
condemnation of an old duffer, let me be
more precise – smartphone users. I have a
smartphone and I would not be without it.
I love it and I use it, though I would be the
first to confess that perhaps I do not utilise
every function of which it is capable. Be
that as it may, it goes everywhere with me
and I would not be without it (though I do
remember vaguely that somehow or other
we coped before their introduction).
We have all got used to the loud
conversations on trains – a stern look
usually suffices – and we mostly accept
the need to stand right in front of the
baked beans in Sainsburys while taking
instructions digitally from ‘er indoors.
The two smartphone cardinal sins from
my perspective come under the general
headings of awareness and manners.
Awareness – knowledge or perception
of a situation or fact. Credit managers know
all about awareness, or they should do in
so far as knowing what is going on is stock
in trade. Something about the smartphone,
however, appears to shroud awareness in
an impenetrable fog – I see them and their
owners wandering blissfully across Oxford
Street without a care in the world. I know
not whether it is a text received, one being
sent or an ardent desire to reach the next
level in Candy Crush, but both phone and
owner are totally oblivious to big red buses,
black cabs, courier motorcycles or anything
else potentially lethal. If the earphones are
implanted, they cannot hear anything either
other than Ellie Goulding or Mark Ronson
(whoever they are).
The pavement is no safer – they walk,
or rather amble, directly towards me, and
it is for me to take the required avoiding
action because in their now world, I just
do not exist. More annoying is the sixth
sense that they appear, in some cases, to
have developed – a sort of radar, which
means as I move slightly to the left to
prevent collision, they move without reason
it appears to their right. Bump – I am so
sorry, I do beg your pardon. Why am I
apologising?
Manners – a) a way in which a thing is
done or happens; b) a person’s outward
bearing or way of behaving towards others.
This section requires me to put another
soapbox on top of the one I have already
mounted, because smartphones and
manners just do not compute. Consumers
have high demands when it comes to
customer service as indeed do B2B
customers. Credit managers know that as
well – in fact no one understands customer
service better than credit managers.
We may now be heading towards the
standard of customer service we deserve
due to the smartphone owner who has no
regard for manners or common courtesy.
The phone is glued to the ear when at the
railway ticket office, post office counter,
shop, bank or just about anywhere when
the situation requires the smartphone owner
and the member of staff to interact, i.e. talk.
No call is that urgent or important that the
phone cannot be put away for just a minute
while the staff member receives the respect
and courtesy he or she deserves. Bear with,
bear with…..no, not me, matey
.Glen Bullivant FCICM
Do you have an issue worthy of the soapbox challenge? If you do, the editor would love to hear from you.
Send your email to editorial@cicm.com or andrew.morris@cicm.com
The recognised standard in credit management
www.cicm.com April 2015 43

LEGAL COLUMN
NORTHERN ROCK’S
CONFUSING LOANS
Northern Rock purported to incorporate the provisions of the
Consumer Credit Act 1974 into some loans, which were not strictly
regulated consumer credit agreements. Peter Walker reviews a recent
case to see if the other borrowers could claim the same recompense.
IN the first half of the 20th century
Robert Benchley, a US humourist,
would not trust a bank prepared to lend
money to him, such ‘a poor risk’ he
thought, but what turned out to be poor
decisions by financiers, such as Northern
Rock, were part of this century’s greater
financial problems. A High Court judge in
NRAM plc v McAdam and Hartley [2014]
EWHC 4174 (Comm) considered some of
Northern Rock’s problems in the light of the
Consumer Credit Act 1974.
The background to the litigation was
that, after the nationalisation of Northern
Rock, the business was split, and NRAM
plc took over the pre-existing mortgages
together with the pre-existing unsecured
loan accounts. It has a new owner, UK
Asset Resolution Limited, which has
another subsidiary company owning
the closed mortgage books of Bradford
and Bingley. Taxpayers in the UK will be
interested in the outcome, because the
government has lent a lot of money to
resolve the financial problems of those two
financial institutions.
The new companies deal with the
transactions created by their predecessors,
including certain unsecured credit
agreements entered into by Northern
Rock. Some borrowers took out secured
loans of up to nine percent of the value
of their homes and further unsecured
loans of up to 30 percent of that value.
Those unsecured loans were capped at
£30,000.
The two defendants in the NRAM case
borrowed that full amount, but section 8(2)
(since repealed by the Consumer Credit
Act 2006 effective on 6 April 2008) of the
Consumer Credit Act 1974 only created
regulated consumer credit agreements
when the credit was less than £25,000.
Regulated agreements have to comply
with provisions such as those relating
to disclosure of information, and from 1
October 2008 creditors have to supply
periodic statements (s 77A of the 1974 Act).
44 April 2015 www.cicm.com
The recognised standard in credit management

more than 40,000 people who had a personal loan with Northern
Rock…are in line for windfalls averaging £6,000 each.’ It stated that ‘none
of them are said to have lost out financially. And the taxpayer will be picking
up the £261 million bill...’
– THE GUARDIAN
Northern Rock had, however, used the
same paperwork for all such unsecured
loans, i.e. including loans of £30,000.
Burton J had to decide whether the rights
and remedies under the 1974 Act applied
to such agreements for amounts greater
than £25,000. There are, for example,
consequences if a creditor fails to provide
periodic statements, and, according to
section 77A(6), these include the loss
of the right to pay interest ‘to the extent
calculated by reference to the period of
non-compliance or to any part of it’ (s77A(6)
(b)).
The Claimant had not complied with the
provisions, but compensated borrowers,
whose agreements were clearly regulated
agreements, i.e. their unsecured loans were
less than £25,000. It declined to do the
same for those people who had borrowed
more than that amount. The cost would
already be around £258 million, but those
not compensated wanted the same benefit.
The agreements, after all, seemed to be
subject to the 1974 Act.
Contract
This raised the question as to whether or
not the parties to an unregulated agreement
could contract into the 1974 legislation.
Toulson J in Brandeis Brokers Ltd v Black
[2001] 2 Lloyd’s Rep 359 had considered
a bill of lading subject to the rules of the
Securities and Futures Authority. Many
of them were inapplicable to a Charter
Party, but Toulson J noted that there were
‘relevant parts which do potentially have
such a bearing.’
Romilly MR had a different point of
view in the case In re Strand Music Hall
Company (Limited) [1865] 35 Beav. 153,
which concerned the powers of directors
to issue bonds. He explained, ‘The proper
mode of construing any written instrument
is to give effect to every part of it, if this be
possible, and not to strike out or nullify one
clause in a deed, unless it be impossible to
reconcile it with another and more express
clause in the same deed.’ Lord Esher
MR in Stewart & Co v Merchants Marine
Insurance Co Ltd [1886] 16 QBD 619 was,
however prepared to strike out ‘immaterial
stipulations which cannot possibly apply to
an insurance of a ship.’
Estoppel
Northern Rock in the NRAM case could
therefore be estopped from denying that
the relevant agreements were governed by
the Consumer Credit Act 1974. Estoppel
was defined by Sir William Blackstone in
the 18th century as happening ‘where a
man hath done some act or executed some
deed which estops or precludes him from
averring anything to the contrary.’
It was an issue in Daejan Properties Ltd
v Mahoney [1996] 28 HLR 498, where the
Rent Act 1977 required the Landlord to
be a party in any agreement between the
statutory tenant and an incoming tenant to
enable the latter to be a statutory tenant
(Sch 1 para (13(2))). The Landlord was not
a party to the agreement, but recognised
both people as joint statutory tenants. Sir
Thomas Bingham MR observed, ‘Parties
cannot contract out of the Rent Act and
therefore cannot be estopped that the
Rent Acts will not apply.’ He added, ‘But in
respect or those matters upon which the
parties are at liberty to agree, there seems
to me no reason why the ordinary doctrine
of estoppel should not prevent a party from
denying that he has so agreed.’ The judges
of the Court of Appeal therefore ruled that
the Landlord was estopped from denying
the position, i.e. that it would treat the
tenants as though they were joint statutory
tenants as if there was an agreement to
do so.
Estoppel, however, is normally
applicable to mistakes of fact, and is also
a shield to defend, not a sword to attack.
The 1966 edition of Snell’s ‘Equity’ states
‘By the nineteenth century, both at law
and in equity the rule was that there would
be an estoppel where there had been a
representation, by words or conduct, of
existing facts, not law, intended to be acted
upon and in fact acted upon to his prejudice
by the person to whom it was made.’
There have been many developments
in the idea since the nineteenth century,
and in The Vistafjord [1988] 2 Lloyd’s Law
Rep 343 the judges of the Court of Appeal
considered estoppel in the context of an
agreement, by which a claimant was to
pay 15 percent commission on gross ticket
sales for cruises on a liner. The defendants
arranged a charter to a company and a
sub-charter, but the claimants objected
to the latter. In addition to that objection
they were unwilling to pay commission,
because, for example, the sub-charter was
outside the passenger sales agreement.
The judges of the Court of Appeal decided
that both parties knew of the sub-charter,
and that the defendants would not have
committed themselves without expectation
of commission. The charter furthermore
was dependent on the sub-charter.
This case incorporated the idea
of estoppel by convention, which is
sometimes known as estoppel by
agreement. The parties in this situation
assume facts, and will be precluded from
denying that assumption, if it would be
unjust or unconscionable to allow them to
go back on it.
Bingham LJ set out a three-stage
test. ‘It applies where (1) the parties have
established by their construction of their
agreement or their apprehension of its
legal effect a conventional basis, (2) on that
basis they have regulated their subsequent
dealings, to which I would add (3) it would
be unjust or unconscionable if one of the
parties resiled from that convention.’ There
is furthermore a course of conduct after
the contract, which results in a common
understanding. Bingham LJ made another
observation about estoppel by convention.
He said that it ‘need not be of facts but may
be of law.’
Conclusion with a proviso
That and other rulings were reviewed in
Burton J’s judgment in the NRAM case. The
claimant, i.e. NRAM, wanted him to declare,
for example, that the rights and remedies
under section 77A of the Consumer Credit
Act 1974 were not incorporated into the
agreement. The claimant also wanted a
declaration that it was not in breach of
its obligations by its failure to provide
statements as required, and, where they
did not comply, it did not have to repay
or re-credit default sums or interest to the
defendants.
Burton J was unsympathetic, and was
‘satisfied that the rights and remedies
in relation to section 77A were imported
into the Agreement.’ The claimants were
therefore in breach of it.
There were resulting headlines in
newspapers such as ‘The Guardian’, which
on 10 December 2014 reported that ‘more
than 40,000 people who had a personal
loan with Northern Rock…are in line for
windfalls averaging £6,000 each.’ It stated
that ‘none of them are said to have lost out
financially. And the taxpayer will be picking
up the £261 million bill.’
The case, however, may go to appeal, so
perhaps other judges will have a different
point of view. The cases nonetheless
emphasise the importance of complying
with the provisions with the Consumer
Credit Act 1974. Credit Managers will rarely
deal with situations like those of Northern
Rock: very fortunate for all of us!
The recognised standard in credit management
www.cicm.com April 2015 45

HR MATTERS
INCREASING A
DISCIPLINARY SANCTION
AT THE APPEAL STAGE
WHEN faced with a disciplinary
issue, employers need to keep
the terms of their disciplinary
procedure in mind – acting
otherwise in accordance with a policy
will have an impact on the fairness of any
subsequent dismissal. A carefully drafted
disciplinary procedure is also very important
at appeal stage. The Court of Appeal was
recently required to consider the fairness
of an employer's appeal procedure in
circumstances where an employer sought,
at appeal stage, to increase a disciplinary
sanction that had been already given to that
employee.
Contractual disciplinary policy
In the case of McMillan v Airedale NHS
Foundation Trust [2014], Miss McMillan was
employed at Airedale NHS Foundation Trust
as a consultant. The Trust’s disciplinary
procedure was incorporated into McMillan’s
contract of employment, making it a
contractual document. The disciplinary
procedure provided that an employee could
appeal against a warning or dismissal and
that there was no further right of appeal
following that initial appeal stage.
The Trust instigated disciplinary
proceedings against McMillan, and
following an investigation and disciplinary
proceedings, upheld allegations of
misconduct. McMillan was issued with a
final written warning, which she appealed
against.
Employee’s appeal
In an exchange of correspondence before
the appeal hearing, the Trust confirmed
that the appeal panel would consider the
evidence in relation to the allegations and
would be entitled to determine its own
outcome in terms of the sanction applied.
The appeal hearing then took place and,
having heard evidence and reached its
decision, the panel set out its findings in
a letter to McMillan. The letter concluded
by saying that the panel should go on to
decide what sanction should be imposed.
Disciplinary sanction
The appeal panel concluded that the
original decision had been a correct one
and that the allegations against her had
been well founded. In addition, however,
the appeal panel indicated that they felt
that it would be appropriate to reconvene to
reconsider the appropriate sanction.
Court's decision
Before the appeal panel could make its final
decision on sanction, McMillan applied to
the High Court for an injunction seeking
to prevent the Trust from increasing the
sanction to dismissal. At the initial hearing
of this injunction, the High Court held that
the employment contract did not allow the
appeal panel to increase the sanction and
issued the injunction, preventing the appeal
panel from taking this measure.
The Trust appealed to the Court of
Appeal (CA) but the appeal was dismissed,
with the CA agreeing with the High Court's
original decision. The CA held that there
was no express right in the contractual
disciplinary procedure to increase the
sanction on appeal and this did not mean
that the Trust had free rein to take whatever
step that it wished at appeal. Interestingly,
the CA said that the possibility of appeal
under the procedure ‘‘was there to benefit
the employee.”
The CA went on to say that the
procedure expressly provided that there
was no further right to appeal against the
decision reached at the appeal hearing.
This meant that if the Trust was able
to increase the sanction on appeal this
would mean that the employee would
have no further right to appeal against that
increased sanction, which goes against
the general principles of fairness. The CA
also referred to the ACAS guide 'Discipline
and Grievances at work' which expressly
states that an appeal should not result in an
increase in penalty.
Best practice
This case is a reminder that where an
employer has a contractual disciplinary
procedure, it is bound by the terms of
that procedure. Invariably, the scope of
an appeal would not usually extend to
increasing sanctions, and to do so would
conflict with ACAS guidance and would
usually constitute unfair practice.
If an employer does want particular
flexibility to increase sanctions on appeal
they would need to provide for an express
power to do so in the relevant procedure.
There would also need to be a further right
of appeal against that sanction.
This case can be distinguished from the
case of Christou and another v London
Borough of Haringey [2013] that involved
the two social workers involved in the
Baby P case. In this case, new facts came
to light that justified a fresh disciplinary
process. Eventually, as a result of that new
disciplinary process, the employees were
dismissed, notwithstanding that the original
disciplinary process had resulted in initial
sanctions of written warnings. Increasing
disciplinary sanction, or trying to unpick
and change the result of a disciplinary
process is very unlikely to be fair and will
only succeed in the most extreme set
of circumstances – as the Baby P case
illustrates.
Gareth Edwards is a partner
in the employment team at
Veale Wasbrough.
46 April 2015 www.cicm.com
The recognised standard in credit management

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CREDIT CONTROL
RECRUITMENT
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our commitment to service delivery, business ethics,
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we offer a uniquely specialist approach that no-one else
on the market does and our goal is to be the largest
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We know Credit Control and we also understand what
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tel:020 7650 3199
email: recruitment@portfoliocreditcontrol.com

Legal Matters
EMMA EMERY IS A PARTNER AT FREETHS : emma.emery@freeths.co.uk
FREE LEGAL ADVICE FROM FREETHS BY CALLING
THE CICM LEGAL HELPLINE 0845 0779698
CICM FREE
LEGAL
HELPLINE
Getting Your Money Back -
Charging Orders
In this month’s Legal Matters we give you an overview of another Judgment
enforcement method, Charging Orders.
YOU may have recently obtained a
County Court judgment against an
individual Debtor for an unpaid debt.
Despite this, the Debtor may still not
have paid the money back. What do you do next?
What is it?
If your Debtor owns property one option is
to obtain a Charging Order. The purpose of a
Charging Order is to try and secure the monies
that are owed to you by placing an entry at the
Land Registry on the Debtor’s beneficial interest in
the property.
Process of obtaining a Charging
Order
There is a two stage process to obtaining a
Charging Order:
1. You need to apply for a Charging Order on
a standard court form. The court will usually
consider the application without a hearing and if
everything is in order an Interim Charging Order
is granted by the court. The Interim Charging
Order can then be registered on the Debtor’s
interest in the property by way of Agreed Notice
(if the property is solely owned by the Debtor)
or by way of Restriction (if the property is jointly
owned by the Debtor and another).
2. The court lists the Charging Order application
for final hearing at which point the court will
either dismiss the Interim Charging Order
or make it Final either with our without
modifications. The Final Charging Order can also
then be registered on the title of the property.
An Interim Charging Order can be granted at any
time after the judgment falls due. The Charging
Order will be registered on the Debtor’s beneficial
interest in the property but not the joint owner’s
interest (should the property be jointly owned).
You have a Final Charging Order,
what next?
The purpose of a Charging Order is to try to and
secure the Judgment debt which is due to you plus
accrued interest and costs. This means that, should
the Debtor seek to sell his or her property (or in
some cases remortgage) and there is sufficient
equity in the property once prior chargeholders,
such as mortgage providers, have been paid in full,
the surplus sale proceeds can be used to pay your
Judgment debt either in full or in part.
One option then open to you, rather than just
sitting and waiting for the Debtor to sell the
property, is, if you are satisfied that there is
sufficient equity available to pay your Judgment,
to issue a claim for possession and sale of the
property. The granting of an order for sale is
discretionary but the Debtor will need good reason
as to why such an order should not be made and
he will need to convince the judge at the hearing
of the claim. If you obtain an order for possession
and sale then you can proceed to obtain a writ of
possession and send a High Court Enforcement
Officer to the property to take possession and you
can then market the property for sale. The court
will usually order that the prior chargeholders be
paid in priority from the sale proceeds and the
costs of sale will also be deducted from the sale
proceeds. If the property is jointly owned then you
will be entitled to the Debtor’s interest in the sale
proceeds (usually 50 percent) once these expenses
have been paid and these proceeds can be used to
pay your judgment debt.
Advantages of using a Charging
Order
• Your judgment debt effectively becomes secured
over the Debtors beneficial interest in the
property.
• It can be used alongside other methods of
enforcement i.e attachment of earnings or third
party debt orders.
• It is a relatively quick process.
• It is a relatively cheap process.
CASE STUDY –
After obtaining an Interim Charging Order,
the Debtor disputed that he had a beneficial
interest in the jointly owned property
because he had entered into a Deed of Trust
with his wife whereby he transferred his
beneficial interest to her to protect the home
from creditors. We successfully applied to the
court that the Trust was a sham solely to put
assets beyond the reach of creditors (s423
Insolvency Act 1986) and the final charging
order was granted. A claim for possession and
sale was subsequently issued and an order
for sale granted.
If you require advice on applying for a Charging Order then please contact us on the Legal Helpline.
www.freeths.co.uk
Banking & Finance / Business Services / Corporate Finance / Construction / Employment / Public Sector / Real Estate
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48 April 2015 www.cicm.com The recognised standard in credit management

WE WANT
YOUR
BRANCH
NEWS!
CONTINUING PROFESSIONAL
DEVELOPMENT (CPD)
HOW CAN YOU ACHIEVE CICM CPD HOURS?
You can achieve CICM CPD hours a number of ways; by attending branch
events, masterclasses, training and undertaking special projects at work.
The CICM activities offering CPD hours can be identified by the CPD logo
which will detail the hours achievable by participating. Below are a few
examples of forthcoming events:
CPD
2
1 APRIL – CICM WEST MIDLANDS
BRANCH, BAILIFF REFORMS IN
PRACTICE, BIRMINGHAM.
22 APRIL – CICM MASTERCLASS –
CREDIT RISK AND COMPLIANCE,
BLACKBURN.
CM
Credit Management magazine
for consumer and commercial
credit professionals
29 APRIL – CICM MASTERCLASS
– SUCCESS WITH TECHNOLOGY
SOLUTIONS, LONDON.
See the forthcoming events section for many more opportunities.
Have you completed 24 x CICM CPD hours? If so, it’s time to submit
your plan and PROGRESS report for certification.
Send your completed submission to Sue Kettle at the CICM HQ
or email cpd@cicm.com
TO DOWNLOAD A CPD DEVELOPMENT PLAN AND PROGRESS RECORD VISIT
WWW.CICM.COM
RECEIVE
YOUR
PERSONAL
SEAL OF
APPROVAL
The Royal Charter affirms the quality and integrity of your
Institute, your qualifications, you as a member, and the
critical role that you play in your business.
New Chartered Institute of Credit Management membership
certificates are now available for any members who would
like to receive one.
You can order a new certificate for the nominal cost of £25
to cover printing, administration and postage.
Visit http://www.cicm.com/certificate-request-form/
to request your certificate today or simply call 01780
722903.
The recognised standard in credit management
www.cicm.com April 2015
49

CICM BRANCH NEWS
BRANCH members met for their regular
(semi-annual), bowling match at the Milton
Keynes XScape Centre recently.
As ever competition was fierce and
some participants obviously took it quite
seriously whilst others just enjoyed the
opportunity to learn a new skill and meet
with other credit professionals.
As last year, dark horse Matt (I don’t
CHILTERNS BRANCH BOWLING EVENING
MEMBERS STRIKE IT LUCKY!
play regularly) was in good form whilst
Pete from Milton Keynes (to quote Paul
Daniels) ran him very close, having
recovered from his late night at the
CICM Awards in London the previous
evening.
Top score went to veteran Stuart, but
given that the prize for best performance
was provided by FUJI he handed over the
trophy to Matt at the end of the games.
Top scores over two games were:
Stuart 258, Matt 231, Pete 230, and Cham
212.
It was great to see some new faces and
our Secretary, Cham spent time between
his turns persuading some of them to join
him on the committee.
EAST OF ENGLAND BRANCH
EAST OF ENGLAND BRANCH AGM
THE AGM at FRP Advisory LLP in
Brentwood was well attended despite
foul weather. Chairman Richard Brown
reported on another good year.
The Data Usage in Credit Management
conference in London had been well
attended and received, with positive
feedback from delegates and speakers.
He thanked Hays Credit Management
for hosting the day, Prism for donating
to the Branch’s charity - Paddington
Development Trust, and corporate
partners Sidetrade for sponsoring the prize
draw.
The joint golf day with London
Branch had been an enjoyable sporting
and networking event and thanks went
to Mike Wykes of London Branch for
organising it, Smith and Williamson LLP,
CRS Electronics Limited, and Buttsbury
Consulting, for their sponsorship which
ensured that it was self funded.
Once again the Branch had supported
the Turner Lecture, Branch member Atul
Vadher being a panellist.
Committee members were thanked for
their support in raising the Branch’s profile
through Brentwood and Essex Chambers
of Commerce.
Outgoing committee member David
Seago gave the Treasurer’s report and
he was then thanked by the Chairman
for his service. Details of the new 2015
Committee are on the Branch page of the
CICM website.
Carol Baker, Vice Chair, Secretary and
Events Organiser, gave a detailed update
on conferences being planned for 2015
and there was much valuable input from
the floor regarding content.
Unfortunately, the advertised ‘CICM HQ
on the Road’ session could not be held
because, despite her best efforts, Sue
Kettle, CICM’s Director of Membership and
Support Services, was unable to get to the
meeting in time due to the weather and
traffic chaos.
The evening concluded with an
insightful and informative update on
Insolvency from Branch member Paul
Atkinson, Insolvency Practitioner and
Partner, FRP Advisory LLP.
The Chairman thanked FRP for hosting
the evening and providing the hospitality.
50 April 2015 www.cicm.com The recognised standard in credit management

NAME: Rob Clarkson
AICM(Cert), Dip CII
From the left: Mark Wagstaffe (Vice Chair), Laurie Beagle (Chair), Matt Cox (CRS), Mark Whiteley (CRS), Carl Goodman (Committee member)
SHEFFIELD BRANCH
AGM WITHOUT SNOW
THE Sheffield & District Branch had its
second attempt at an AGM on the 4 March,
since back in January the planned event
was cancelled at the last minute due to
snow. This time the weather held firm, and
was positively beautiful in comparison.
We did however keep to the same
theme, ‘2015 through the looking glass’
albeit including hindsight obtained from
January and February.
2014 was good year for the branch,
having seven events throughout the year
including legal enforcement; late payments;
technology in credit; and a mock creditors
meeting.
On a lighter side, The Tour De France
credit team event, a trip to Rotherham FC,
and our annual visit to the casino rounded
off the year. A big thank you must go to
the 10 sponsors; their contribution was
The recognised standard in credit management
immense and helped us deliver a successful
program of events. Another big thank you
must go to the branch committee who all
worked very hard, and particularly to Neil
Lane who is leaving the committee having
served for many years.
Credit Risk Solutions sponsored this
year’s AGM, with Matt Cox and Mark
Whiteley taking us through trade credit
insurance, explaining what it is, who
provides it, and the current insurers
predictions of what will happen in 2015.
This proved to be highly insightful and
thought provoking for all in attendance.
The branch has another packed
programme planned for the coming year,
and we look forward to Philip King,Chief
Executive of the CICM, visiting us on 7 July.
For further details and updates please
visit our website.
To include your branch reports in the May issue of CM, submit your copy
by 9 April via email to branches@cicm.com
CICM CONTINUING
PROFESSIONAL
DEVELOPMENT (CPD)
CICM recognises the importance of Continuing
Professional Development (CPD) for credit professionals
Start your journey to progression today by downloading
the CICM CPD plan from the website www.cicm.com
STEP CLOSER TO YOUR PROFESSIONAL GOAL
CPD
1
JOB TITLE:
Binder Credit
Manager
COMPANY:
Canopius Managing
Agency (Lloyds of London)
HOW LONG WORKED AT YOUR
CURRENT COMPANY: 3 Years
HOW LONG YOU’VE WORKED IN
CREDIT MANAGEMENT: 20 years
60SECONDS
WITH
HOW DID YOU GET INTO CREDIT
MANAGEMENT?
In the 80s I had an accounts job and discussed
my career path with the Group Accountant
who advised taking ICM qualifications. I soon
discovered a whole credit management world
beyond credit control.
WHAT IS THE BEST THING ABOUT
WHERE YOU WORK?
The diversity of the role - working within the
Lloyds Insurance environment means that
you need to fully understand the logistics of
insurance, regulatory issues and emerging
risks.
WHAT MOTIVATES YOU?
My childhood was tough so I motivate myself
to be the best I can and inspire my children.
My mum is also a great motivation – she held
three jobs while completing her BA Hons at
night.
WHAT IS YOUR FAVOURITE MEAL?
You can’t beat a good old plate of fish and
chips with plenty of salt and vinegar and
ketchup on the side.
WHAT IS YOUR FAVOURITE HOLIDAY
DESTINATION?
The Algarve, I like to rent a villa near to
Albufeira for the family when I can.
NAME 3 PEOPLE YOU WOULD
INVITE TO A DINNER PARTY AND
WHY?
Richard Branson – I find his life story
fascinating and inspirational.
Kylie Minogue – I would like to hear more
about her fight with cancer and how she copes
with being in the public eye.
Hugh Grant – My favourite actor and I am sure
he would have some funny celeb stories to tell.
WHAT IS YOUR FAVOURITE
PASTIME/RELAXATION ACTIVITY?
It would probably be golf but have not played
in a while so will say DIY, I like it when you
complete a project and can say “I did that”.
IF YOU WERE TO HAVE ONE SPECIAL
POWER, WHAT WOULD IT BE AND
WHY?
To be able to fly, I would love to sky dive which
is the closest I will get! It would save getting the
constantly delayed train to work each day.
www.cicm.com April 2015
51

CICM Credit Risk &
Compliance Masterclass
Free event to members
22 APRIL AT GRAHAM & BROWN
OFFICES IN BLACKBURN
For more info visit www.cicm.com/events
To book your place email events@cicm.com or call 01780 722902
CICM EVENTS
CPD
2
1 APRIL
CICM West Midlands Branch –
Presentation by Gary Bovan on Bailiff
reforms in practice
BIRMINGHAM 18:30
Gary Bovan, Director of Client Care, of the High
Court Enforcement Group (HCEG) will talk
about the bailiff reforms in practice, as they
approach their first anniversary.
Contact: peter.brewer@weightmans.com
Venue: Weightmans LLP, First Floor, St Philips Point,
Temple Row, Birmingham, B2 5AF
2 APRIL
South West Branch AGM
DEVON
18:30 AGM 19:00 MEAL
The branch will hold is AGM at 18:30 followed by
networking and dinner.
The branch is subsidising the event and therefore
CICM members may attend free of charge. There
will be a cost of £15 per head for non members.
This evening is not limited to Branch Members. Non
members and potential new members are welcome
to join us.
Contact: Gerry Thomas, Branch Chair E:
gerrythomas1610@hotmail.co.uk
Venue: Dartmoor Lodge, Peartree Cross, Ashburton,
Devon TQ13 7JW
16 APRIL
CICM Best Practice Conference
for CICMQ
NOTTINGHAM
CICMQ accreditation is formal recognition of your
organisation’s commitment to quality, continuous
improvement and best practice in all things credit.
Contact: Chris Sanders – E: cicmq@cicm.com.
Venue: Experian HQ, Embankment House, Electric
Avenue, Nottingham, NG80 1EH
FORTHCOMING EVENTS 2015
22 APRIL
CICM Masterclass –
Credit Risk & Compliance
BLACKBURN
Presentations will highlight the changing business
landscape, a Credit Insurer’s view on life, the key
things on the compliance agenda and potential
impact of non-compliance and much, much more!
Contact: events@cicm.com or call CICM
marketing on +44 (0)1780 722902.
Venue: Graham & Brown Wallcoverings Head Office,
Design & Marketing Centre, Stanley Street, Blackburn,
BB1 3DW
CPD
2
22 APRIL
Yorkshire Ridings Branch – Credit
Careers & Professional Development
LEEDS 17:30 – 20:30
We are delighted to invite you to an all-inclusive credit event in
conjunction with Hays, giving an insight into the credit profession
including education, careers, quality standards and the make up
of the DNA of a Credit Manager.
Contact: Catherine Hill, Committee Member
E: Catherine.hill@hays.com
Venue: The Royal Armouries, Armouries Drive, Leeds
LS10 1LT
22 APRIL
CICM South Wales Branch –
Insolvency & Liquidation A Creditors
Rights
SOUTH WALES 18:00
This free event aimed at educating businesses
about their rights when a company owes them
money, either through liquidation or administration.
Non members and potential new members are
welcome to join us. A buffet will be available at the
end of the event.
Contact: Please reply to Steve White, Branch
Chair E: steve@thornburycollections.co.uk
Venue: McAlister & Co. Suite 4, Tredomen Gateway,
Tredomen Park, Hengoed CF82 7EH
CPD
6
29 APRIL
CICM Masterclass – Success
with Technology Solutions
LONDON
This masterclass will explore current and future
technology solutions for the credit industry,
offering insight into some of the challenges of
implementation and how to secure a positive
outcome. Contact: events@cicm.com or call
CICM marketing on +44 (0)1780 722902.
Venue: Hays Recruitment, 107 Cheapside, London,
EC2V 6DN
30 APRIL
CICM Sussex & Surrey Branch –
The Dogs
BRIGHTON
Cost will be £10 members, £15 for non-members.
The evening will include Dinner (starter, main and
coffee/tea) in the skyline restaurant with a view
of the finishing line, a pick 6 jackpot voucher,
admission and race card. Contact: Nicola.reuter@
uk.thalesgroup.com or Brendan.Clarkson@
moorestephens.com Venue: Coral Brighton & Hove
Greyhound Stadium Nevill Road, Hove, East Sussex BN3 7BZ
OTHER EVENTS
19 – 21 APRIL
FCIB – International Credit & Risk
Management Summit
MADRID
This event provides an opportunity to discuss the
latest challenges of extending credit, review current
market intelligence, share practical solutions
and get specific questions answered by other
practitioners and industry experts.
Contact: https://fcibglobal.com/events/eventcalendar/details/244-international-credit-riskmanagement-summit-madrid.html
Venue: Hotel Hesperia, Paseo de la Castellana, 57,
Madrid 28046, Spain.
CPD
6
52 April 2015 www.cicm.com The recognised standard in credit management

EDUCATION
Is it time to educate
your boss?
Can your company afford for you not to be a fully
qualified credit professional?
Best debtor day results ever, breaking previous records by six days etc
Improvement in our cash receipts by over 15 percent average (over 8 months)
Calls increased by 40 percent after training
Disputes reduced by over £1m
Take the opportunity of ‘Shaping the future’ by raising awareness of CICM qualifications during Learning at Work
Week (18 – 24 May 2015). Get in touch to find out how the Chartered Institute of Credit Management can help
(alison.wisden@cicm.com) or phone 01780 722909. See also www.cicm.com and www.campaign-for-learning.org.uk

EDUCATION
From the left: Philip King and Ian O'Doherty.
CICM CORPORATE
MEMBERSHIP – A TRUMP
CARD FOR MBNA
FOLLOWING a period of uncertainty,
MBNA turned to focus on growth
and sought to invest in boosting
the capability of its employees and
retaining the best talent.
The company had developed a
programme called ‘Xplore’ based on the
concept that explorers thrive on adapting
and being accountable for their actions
in uncertain territory. They focused on
development rather than promotion and
used strong imagery and language to
engage staff in shaping and influencing
the business. They created a portal using
SharePoint with zones for engagementrelated
activities, leadership development,
performance appraisals and development
plans.
However, MBNA also needed highly
specialised credit risk training to motivate
and engage their risk team and encourage
a broader perspective. They had already
established a tailored Masters degree
programme at a local university with a limited
number of places.
The solution
Corporate Membership with the Chartered
Institute of Credit Management (CICM)
enabled MBNA to offer a compelling learning
and development proposition to its whole
credit risk team. Many are now Corporate
Affiliate members of CICM, giving access
to a range of training, qualifications and a
jointly branded monthly e-newsletter. As
a Corporate Member, MBNA has regular
support from a CICM education specialist
to help find the most appropriate learning
and development activities, tailor training
programmes, set up qualification courses,
promote initiatives and co-ordinate
relevant content for the popular ‘eBuzz’
newsletters.
As a further commitment to best practice,
MBNA combined its Corporate Membership
programme with the Chartered Institute
of Credit Management Quality (CICMQ)
accreditation, with the aim of gaining
recognition as a CICM Centre of Excellence.
Commenting on the value of the
arrangement, Debbie Tuckwood, CICM
Director of Learning and Development
explains: “Any significant initiative requires
regular support and drive to ensure success.
CICM understands the challenges of setting
up and maintaining high quality, tailored
learning programmes and our Corporate
Membership arrangements build in regular
catch-up meetings with CICM account
managers and education specialists. The
package also includes a range of discounts
and flexible payment and administration
arrangements to make development options
for large teams more practicable and cost
effective.’
The outcome
During a period of uncertainty, MBNA has
achieved remarkable success in building
employee engagement. The response from
staff has been overwhelming – all CICM
programmes have been oversubscribed with
employees opting for both Masterclasses
and qualification programmes. To harness
54 April 2015 www.cicm.com The recognised standard in credit management

IN BRIEF :
From the left: Gill Taylor, Debbie Tuckwood, Ian O'Doherty, Philip King, Karen Gresy and Alan North.
The feedback that we have had from our
teams has been excellent in terms of both
content and quality of the CICM trainers ...
this exceptional interest, MBNA ensured that
all who expressed an interest received
at least one of their development choices.
Alan North who heads up the Credit
Risk Strategies and Enterprise Analytics
(CRS&EA) division and has championed
the CICM program since 2013 said, “The
Business Schools, Masterclasses and CICM
Corporate Membership have provided an
ideal opportunity for our organisation and
employees to invest in their future. The
feedback that we have had from our teams
has been excellent in terms of both content
and quality of the CICM trainers. We are
delighted to be able to build on our original
two year program with ongoing education in
2015.”
In the first year over 180 benefited from
either a Business School course or a oneday
Masterclass covering fundamentals
of credit risk. Sixty passed exams in
Consumer Credit Management or Business
Environment and a further 45 are studying in
the second year.
– ALAN NORTH
(CRS & EA) DIVISION
Feedback from participants, particularly
about the teachers has been very positive.
Courses have met their needs and
expectations and are recommended to
colleagues. The programme continues to
grow with new Masterclasses being added
to address specific skills gaps, such as
US and UK regulation, macro and micro
economics, presenting the case, and
advanced credit risk. MBNA has also rolled
the programme out to other lines of the
business.
The programme has delivered great
results with the team citing the investment
made in the development of staff, including
the range of education and training available,
as one of the top reasons that MBNA
is a great place to work. The success is
borne out by the participation in the CICM
programme that increased by 20 percent to
67 percent in the second year. Underpinned
by CICM learning and development
programmes, the team also achieved CICMQ
accreditation in record time.
THE CUSTOMER
MBNA is one of the UK’s leading credit
card issuers and part of Bank of America
Corporation (NYSE: BAC). It provides a
range of own-brand and affinity credit
cards, including some of the best-known
names in the UK, such as Virgin Atlantic,
Manchester United Football Club, WWF and
the AA. It was voted Credit Card Provider of
the Year for the second year running in the
Consumer Moneyfacts Awards 2015. MBNA is
headquartered in Chester with large teams in
consumer credit risk and collections.
THE CHALLENGE
To maintain a positive, engaged workforce
and retain employees with essential skills
during a period of business uncertainty.
THE SOLUTION
CICM’s Corporate Membership delivered a
flexible and tailored package of qualifications,
Masterclasses, monthly newsletters and
quarterly support from CICM educational
specialists which complemented other MBNA
initiatives. CICMQ helped benchmark MBNA’s
credit operation against best practice.
THE OUTCOME
The enhanced range of education and training
has been recognised as very positive by staff
and reflected in high scores for employee
engagement. For the business the enhanced
skills and qualification of the team and
achievement of CICMQ in record time have
contributed to the high standard of work and
business improvement.
The recognised standard in credit management
www.cicm.com April 2015
55

DON’T MISS
YOUR NEXT BIG
MOVE IN CREDIT
At Hays Credit Management, our consultants are all affiliate members of the
CICM and understand both the demands you face and the skills you need to
thrive within your industry. We can therefore offer you the personalised
careers advice and support that you need.
LEGAL COLLECTIONS OFFICER
EXPERTLY DRIVE COLLECTIONS
City of London, £38,000
This leading international legal firm is looking for a
senior credit controller to be responsible for a team
of fee earners and its client bases. You will focus on
client management and debt reporting whilst maximising
collections and retaining strong client relationships.
You will ideally have a legal background, knowledge of
SARs and exposure to Elite. This is an exciting role for a
tactical and forward thinking professional to join a market
leading company. Ref: 2392724
Contact Matthew Ardron on 020 3465 0018
or email matthew.ardron@hays.com
CREDIT CONTROLLER
OWN THE PROCESS
West Kensington, up to £30,000
A leading advertising agency is looking for an
experienced and self-motivated credit controller. You will
have autonomous control of a high value ledger and deal
with international clients across the EMEA. You will ideally
have experience working within the media industry,
as well as experience using DDS software and a positive
and personable nature. In exchange you will be presented
with the opportunity to achieve impressive results for
a company that offers great rewards. Ref: 2379860
Contact Despina Solomou on 020 3465 0020
or email despina.solomou@hays.com
CREDIT ACCOUNTS RECEIVABLE MANAGER
ENHANCE BUSINESS RESULTS
Essex, up to £35,000
This rapidly expanding business in Epping is looking for
an experienced manager. You will report into the Finance
Manager and have responsibility for all credit control
and accounts receivable. Managing cash collections, you
will lead system development ensuring the minimisation
of company credit exposure and maintaining customer
service levels. Experience of using Sage and Excel would
be advantageous, but is not essential.
Ref: 2351070
Contact Kerry Ferguson on 0113 243 8384
or email kerry.ferguson@hays.com
CREDIT CONTROLLER
JOIN AN INDUSTRY LEADER
City of London, £28,000
An exciting opportunity has arisen within a leading
insurance company for an experienced credit controller to
be responsible for an important international account. You
will ideally have experience within the insurance market
and will take responsibility for day-to-day operation and
collection targets. This is an amazing opportunity to join
an international and market leading insurance company
and progress your career.
Ref: 2399953
Contact James McNicholas on 020 3465 0020
or email james.mcnicholas@hays.com
hays.co.uk/creditcontrol

SENIOR CREDIT CONTROLLER
DRIVE CONTINUOUS IMPROVEMENT
Leeds, £22,000-£24,000
A rare opening has arisen for an experienced credit
controller with a prestigious professional services
organisation. You will operate in a stand-alone
capacity and take responsibility for the management
of a portfolio of clients. Managing credit control
procedures and reviews, you will analyse debt trends.
You will ideally have exposure from working within a
professional services environment, as well as have
control experience and excellent communication skills.
Ref: 2399410
Contact Kerry Ferguson on 0113 243 8384
or email kerry.ferguson@hays.com
CREDIT CONTROLLER
MAKE AN IMPACT
Ipswich, up to £22,000
This industry leading logistics company is seeking an
experienced accounts professional with diverse experience
to join its credit management team. You will control and
monitor a range of accounts within the FSL ledgers, as
well as manage the weekly collection of aged debt and
cash, reconcile accounts and produce monthly updates.
You will be enthusiastic, personable and possess strong
attention to detail. This is your chance to gain industry
knowledge with an international company. Ref: 2397411
Contact Michael Blyth on 0147 326 1902
or email michael.blyth@hays.com
JUNIOR CREDIT CONTROLLER
TAKE YOUR NEXT STEP
Reading, up to £20,000
A well respected construction company is looking for a
driven professional to join its successful team. You will
have had previous exposure to various collection, billing
and invoicing processes. Directly responsible for credit
control processes, you will also have business partnering
and cash collection responsibilities. This is an excellent
opportunity for a skilled professional to join a highly
profitable local business, with excellent scope for
career progression and CICM study support.
Ref: 2389162
Contact James Adey on 0118 907 0321
or email james.adey@hays.com
CREDIT TEAM LEADER
LEAD YOUR EXPERT TEAM
Edinburgh, £19,500 + benefits + CICM training
This market leading company is looking for an exceptional
team leader to take responsibility for managing a large
credit control function. You will train and coach the
team, manage your own ledger and build excellent
internal and external relationships. As well as fantastic
career prospects, this role offers the chance to work
and gain valuable experience within a well-respected,
market leading company.
Ref: 2374833
Contact Hazel Wynn on 0141 212 3665
or email hazel.wynn@hays.com
APRIL
& MAY
DNA OF A CREDIT
MANAGER
LAUNCH EVENT
Hays in conjunction with CICM is delighted to invite
you to an all-inclusive event designed to provide
insight into careers, education and the dna of a credit
manager. This event has been designed to cover all
aspects of credit careers and provide information for
managers and aspiring professionals alike.
The events which feature the findings of our latest DNA
of a Credit Manager Report are taking place across
the country, in Birmingham, Glasgow, Leeds, London,
Manchester, Newcastle and Reading.
If you are looking to further your career,
want to strengthen your team or would
like an overview of the market, it pays to
speak to the market leaders.
Contact us at creditcontrol@hays.com
For more information and to book your place,
please visit hays.co.uk/dna/credit-manager

NEW CICM MEMBERS
THE INSTITUTE WELCOMES NEW MEMBERS WHO JOINED DURING FEBRUARY
FELLOW
NAME
Anthony Jeremiah
COMPANY
Sungard Avantgard
MEMBER
NAME
Ronald Hiller
Paul Holt
Yvonne Mclean
Cheryl O'Brien
Denise Padachi
Divyansu Shah
Benjamin Sutton
Chris Thornton-Dees
Simon Wintle
ASSOCIATE
NAME
Shelley Depledge
Michelle Harle
Karen Young
COMPANY
Nicholls Law
Advanced Diesel Engineering Ltd
Ageas Retail Ltd
Fletcher Building Ltd
UTi Worldwide (UK) Ltd
Westmill Foods
Bristol Wessex Billing Services Ltd
Debt Managers Services Ltd
Sony Europe Ltd
COMPANY
Current Consult Ltd
SIG Trading Ltd
Lee Baron Group Ltd
AFFILIATE
NAME COMPANY NAME COMPANY
Felek Akcay
Berkmann Wine Cellars Ltd
Neil Jones
Hays Specialist Recruitment
Khalil AlDahouk
hamdan Bin Mohammed Smart University
Kirstie Jones
Motiva Group Ltd
Suzanne Amour
Scotts Sports
Wafa Khalid
Sloane International Development
Matthew Ardron
Hays Credit Management
Paul Kibbler
Bradford Metropolitan District Council
Jessica Ashford
EFM Management FZ LLC
Matthew Lawrence
Bristow & Sutor
Simon Beaumont
Bristow & Sutor
Richard Lenton
xoserve Ltd
Rehana Begun
xoserve Ltd
Vicki Lingard
Espa International
Gemma Bennett
Axa Insurance plc
Steven Little
Debt Collect UK Limited
Sandip Bhurgee
Amicus Horizon
Lucky Locord
Lambert Smith Hampton
Sam Blake
Hills Numberplates Ltd
Angie Loveless
Battens Solicitors Ltd
Sarah Blewer
xoserve Ltd
Clemence Mangwana
Transguard Group
Michael Blyth
Hays plc
Ernest Marc
International SOS Assistance UK Ltd
Catherine Brear
Zurich Insurance
Joshua Mathurin
Linde Material Handling UK Ltd
Kelly Broadbent
Deloitte LLP
Paul McGinty
Andrew Wilson & Co
Angela Brown
High Court Enforcement Group Ltd
James McNicholas
Hays Credit Management
Roger Brown
Penham Excel Ltd
Faye Melrose
Allianz Insurance plc
Loydel Bryan
Bristow & Sutor
Maria Mifsud
Elektra Limited
Anthony Burke
SIG Trading Ltd
Ashley Miller
Chandlers Limited
Kylie Burley
SIG Trading Ltd
Joanne Mills
University of Glasgow
Stuart Byrne
Hays Credit Management
Louise Moir
Severn Trent Water
Adam Cartwright
High Court Enforcement Group Ltd
Pauline Muddyman
Bristow & Sutor
Gary Charles
Bradford Metropolitan District Council
Alison Murphy
Axa Insurance plc
Georgina Churchward
Deloitte LLP
Bradley Murphy
Chandlers Limited
Danielle Clark
SmartestEnergy Ltd
Kay Needham
SIG Trading Ltd
Damian Collett
Penham Excel Ltd
David Nuttall
Penham Excel Ltd
Kate Connall
Contract Natural Gas Ltd
Janice O'Connor
FMG Support Ltd
Lee Cunningham
Acme Facilities Group Ltd
Manuela Olivari
Hilton Malta (Spinola Development Co Ltd)
David Da Silva Pereira
Motability Operations Ltd
Olakunle Orebe
Vintage Press Ltd (The Nation Newspaper)
Sharon Da Silva Teixeira
Axa Insurance plc
Zeus O'Sullivan
Chandlers Limited
Kimberley Daniel-Ellison
Andrew Wilson & Co
Danielle Parsons
Unite Students
Kaj Darby
Chandlers Limited
Natasha Pawsey
Andrew Wilson & Co
Rebecca Day
Kingsdale Group Limited
Natalie Peach
AA Projects
Lorraine Debenham
iSupplyEnergy
Helen Pelham
Vent-Axia Ltd
Moustapha Diagne
Richburns
Zoe Pellow
Symphony Group Plc
Nicola Dickinson
Veka plc
Amy Pickersgill
Contract Natural Gas Ltd
Michelle Dilkes
BaxterStorey Limited
Maria Pitham
365 ITMS Ltd
Matthew Donnelly
Viridor Waste Management
Gary Quilligan
Andrew Wilson & Co
Lee Dootson
Andrew Wilson & Co
John Randles
Bradford Metropolitan District Council
Andrew Dunn
Andrew Wilson & Co
Alison Richards
Andrew Wilson & Co
Hannah East
Hays Credit Management
Peter Roberts
UK Fuels Limited
Megan Evans
5G Communications
Adrian Royal
Financial Ombudsman Service
Emma Fall
Penham Excel Ltd
Sherelle Senior
Right Fuelcard Company
Anton Fenech
Actavis International Ltd
Julie Sharpe
AOL (UK) Ltd
Julia Foster
Hays Credit Management
Lee Shaw
M2
Todd Geisel
Car Cash Point
Diane Simpson
SIG Trading Ltd
A. Michelle Gelder My Management Accountant
Satbinder Singh
Bristow & Sutor
Matthew Gould
Penham Excel Ltd
Gurmukh Singh
ServiceMaster
Kathryn Graham
Axa Insurance plc
Ross Smallwood
SIG Trading Ltd
Lawrence Grix
Sheriffs High Court Enforcement Limited
Daniel Stewart
Andrew Wilson & Co
Dimitrios Gyltidis
Bristow & Sutor
Jennifer Street
Rachael Hall
Francesca Taberner
Academy Leasing Ltd
Laural Hampson
Axa Insurance plc
Mark Tanti
Charles Grech & Co.Ltd
Nicole Harris
Viridor Waste Management
Louise Tate
HSB Engineering
Ciaran Hayes
Network Rail (Infrastructure Ltd)
Rodney Testa
TechnoWorld
Candice Heim-Sarac
Axa Insurance plc
Jonathan Thoburn
Andrew Wilson & Co
Sharron Higgins
Peninsula Finance plc
Dennis Thorne
Bristow & Sutor
Li-Ying Huang
Yahoo Taiwan
Alan Tuck
Celesio Group UK
Michael Hucklesby
Penham Excel Ltd
Russell Turner
Marketing VF Ltd
Llyr Hughes
Ceredigion County Council
Anita Vella
FimBank Plc
Sonja Hurt
SIG Trading Ltd
Deborah Warren
Bristow & Sutor
Tracy Hutchinson
SIG Trading Ltd
Ania Wasilewska
Camira Fabrics Ltd
Shane James
Chandlers Limited
Philip Weston
Bradford Metropolitan District Council
Laural Jefferies
Fashion Edge Ltd
Natasha White
Rema Tip Top UK Ltd
Jack Jepson
Stanley Black & Decker Ltd
Hollie Wildman
Hays Credit Management
Scott Johnson
Bristow & Sutor
Karen Young
Hays Credit Management
David Jones
Mdn Systems Ltd
David Zalans
Bradford Metropolitan District Council
58 April 2015 www.cicm.com The recognised standard in credit management

Why not have both?
At Controlaccount, we believe you can. Combining our customer-centred approach
with fresh innovation, we work directly with your credit control department like we're
part of the team - without sacrificing the perks of technology.
Utilising our ClientWeb portal allows your team to upload, view and instruct cases
whenever and wherever they need to.
Or if you prefer the old fashioned way, you can speak to our outstanding staff. We're
happy to do both.
T: 0845 680 8783
E: clientservices@controlaccount.com

Cr£ditWho?
CICM Directory of Services
FOR INFORMATION, OPTIONS
AND PRICING PLEASE EMAIL
anthony.cave@cabbell.co.uk
ANTI MONEY LAUNDERING
COURT ENFORCEMENT SERVICES
SmartSearch
Station Court, Station Road, Guiseley, Leeds, LS20 8EY
T: 0113 238 7660
F: 0113 238 7669
E: info@smartsearchuk.com
W: www.smartsearchuk.com
SmartSearch is the first system to bring together Business
and Individual AML Verification on a single platform. Our data
providers Experian and Dow Jones provide SmartSearch
access to over one billion data items enabling AML
verification in all Markets. AML verification data subjects are
automatically screened against the latest Sanction, PEP and
SIP Lists. Ongoing monitoring for the duration of your contract
is provided at no extra cost. Efficient processes; less than 3
minutes to execute a business AML check and a sub 60 second
individual check. Why not let your Compliance Team test drive
SmartSearch for 14 days free of charge? (Ref:CM101)
COLLECTIONS
Lovetts Solicitors
Lovetts, Bramley House, The Guildway,
Old Portsmouth Road, Guildford, Surrey GU3 1LR
T: +44(0)1483 457500
E: marketing@lovetts.co.uk
W: www.lovetts.co.uk
Lovetts has been recovering debts for 30 years! When you
want the right expertise to recover overdue debts why not use a
specialist? Lovetts’ only line of business is the recovery of
business debts and any resulting commercial litigation.
We provide:
• Letters Before Action, prompting positive outcomes in more
than 80% of cases • Overseas Pre-litigation collections with
multi-lingual capabilities • 24/7 access to our online debt
management system ‘CaseManager’
Don’t just take our word for it, here’s recent customer feedback:
“...All our service expectations have been exceeded...”
“...The online system is particularly useful and is extremely easy
to use... “...Lovetts has a recognisable brand that generates
successful results...”
Court Enforcement Services
Wayne Whitford Director – Business Development
M:07834 748 183
T: 0843 504 1606
E: info@courtenforcementservices.co.uk
W: www.courtenforcementservices.co.uk
Court Enforcement Services provides fast resolution of High Court
Enforcement, County Court Judgments (CCJs) over £600 and
Commercial Rent Arrears Recovery (CRAR). We help businesses
and individuals to enforce judgment awards made in their favour in
the Civil Court process.
Our team is very experienced within the Civil and High Court
Enforcement industry and as owners of the company, we will take
the lead and manage all aspects of the services that are provided on
your behalf. We have launched Court Enforcement Services in order
to bring a fresh, modern and above all personal customer-focussed
approach to High Court Enforcement and Commercial Rent Arrears
Recovery (CRAR).
CREDIT INFORMATION
Premium Collections Limited
Office 3, Caidan House Business Centre, Canal Road,
Timperley, Altrincham, Cheshire, WA14 1TD
T: 0161 962 4695.
F: 0333 121 3843
E: enquiries@premiumcollections.co.uk
W: www.premiumcollections.co.uk
Premium Collections Limited has the credit management solution
to suit you. Operating on a national and international basis we
can tailor a package of products and services to meet your
requirements. Staffed by dedicated professionals with over 60
years combined experience of handling virtually every type of
debt issue, the company was formed in December 2002 and
is owned by our Managing Director, Paul Daine FCICM. Paul’s
particular areas of expertise are the motor finance, insurance
and international debt collection sectors. Services include B2B
collections, B2C collections, international collections, absconder
tracing, asset repossessions, status reporting and litigation
COLLECTIONS (LEGAL)
Blaser Mills Solicitors
Head Office: Park House, 31 London Road,
High Wycombe, Buckinghamshire, HP11 1BZ
T: 01494 478660/478661
E: Jackie Ray jar@blasermills.co.uk or Gary Braathen
gpb@blasermills.co.uk
W: www.blasermills.co.uk
Established in 1888, leading multi-disciplinary law firm Blaser
Mills specialises in services for businesses and individuals.
The Firm has particular expertise in Dispute Resolution and
Debt Recovery working with experienced credit managers and
finance directors providing solutions to both contested and
uncontested claims.
Blaser Mills provides an experienced team including CICM
qualified legal representatives and the Firm is cited in the
Legal 500 law directory based on quality of work and strong
client feedback.
Offices in Aylesbury, London (Central), London (Harrow), Old
Amersham, Rickmansworth, Staines-on-Thames
CONSULTANCY
Company Watch
312 Coppergate House, 16 Brune Street, London, E1 7NJ
T: +44 (0)20 7043 3300
E: info@companywatch.net
W: www.companywatch.net
What would happen if one of your key customers failed? Do
you rely on company information that is up to 18 months’ old?
Company Watch provides a credit management system that’s
predicted around 90% of company failures. Not only that, our
interactive system allows you to input more up-to-date accounts,
and to stress-test company financials to generate an instantly
updated analysis of a company’s financial health. With a
portfolio and email alert system, and a user interface showing
5-year trends along with everything you need to know at a
glance, Company Watch is an invaluable resource in the credit
management process.
Freeths Solicitors
Third Floor St James’ Building,
61-95 Oxford Street, M1 6FQ
T: +44(0)845 634 2540
F: +44(0)845 634 2541
E: emma.emery@freeths.co.uk
W: www.freeths.co.uk
Freeths is one of the UK’s leading regional law firms with
10 offices across the UK. We have a specialist team that
advises on book debt collection and asset recovery in
insolvency situations and everything in between. We believe our
role is not just to collect your debts but also to increase your
recoveries by working smarter. We have a range of flexible
funding options to suit businesses of any size and advise on
all matters from debt recovery and retention of title to disputes
about the quality of goods and services. For undisputed claims
we can offer low fixed rates or ‘no win no fee’ and we work fast
taking the first steps in recovering your debt the same day. We
are very proud to be the CICM’s Corporate Legal Partner and
to be hosting the CICM Helpline providing free and quick initial
legal advice to CICM members.
Business Change Partners Ltd
The Birches, 5 Moat Farm Close, Greenfield,
Bedfordshire, MK45 5DP
T: +44(0)152 572 0226.
E: enquiries@businesschangepartners.com
W: www.businesschangepartners.com
Business Change Partners is a small independent consulting firm
of experienced operational and consulting professionals. We assist
clients in the areas of leadership, change, operational management,
organisation design and business process improvement with
functional expertise in Billing, Credit Management, Revenue
Assurance and IT systems implementations. Our international
experience includes telecommunications, utilities, oil and gas,
manufacturing, publishing and financial services, in the business-tobusiness
and business-to-consumer markets. We deliver pragmatic
solutions and significant improvements to business processes,
including cash collections, delivering millions of pounds of benefit
for our clients. We are also proud to manage CICMQ on behalf of
and under the supervision of the CICM.
CoCredo Limited
Missenden Abbey, Great Missenden, Bucks, HP16 0BD
T: 01494 790 600
E: helpdesk@cocredo.com
W: www.cocredo.co.uk
CoCredo were proud winners at the CICM British Credit Awards
for ‘Credit Information Provider of the Year 2014.’ We provide
live online company credit reports and related business
information within the UK and overseas. We have direct
feeds from Dun & Bradstreet, Companies House and other
premium providers. We provide business information on over
228 million companies across 240 countries. Our information
is updated over 500,000 times per day and we have some
excellent tracking mechanisms which provide proactive
daily monitoring of changes in the global information
on record. We can offer a wealth of additional services
including D.N.A portfolio management, CoData marketing
information, Consumer and Director Searches. We pride
ourselves in delivering outstanding customer service
offering you unrivalled support and analysis to protect your
business.
60 April 2015 www.cicm.com
The recognised standard in credit management

Cr£ditWho?
CICM Directory of Services
FOR INFORMATION, OPTIONS
AND PRICING PLEASE EMAIL
anthony.cave@cabbell.co.uk
Creditsafe Business Solutions
Bryn House, Caerphilly Business Park, Van Rd,
Caerphilly, CF83 3GG
T: 0292 088 6500.
E: ukinfo@creditsafeuk.com
W: www.creditsafeuk.com
Creditsafe is Europe’s most used supplier of credit &
business intelligence. Creditsafe have helped over 60,000
customers across Europe and the USA with a range of
products which includes our UK, European and International
Company Credit Reports, which reach over 129 countries
and 90m companies; customer and supplier Risk Tracker and
our 3D Ledger product which has captured over 35 million
Trade Payment Data Experiences since its launch in 2012.
All of which will help companies manage their exposure to
risk, make informed decisions in relation to credit limits whilst
looking at how you can identify gaps within your sales ledger
to prioritise collections and leverage sales.
Arthur J. Gallagher (GB)
Newater House, Eleven Newhall Street
Birmingham. B3 3NY
T: 0121 606 0660
W: www.ajginternational.com
With the risk of default by customers still a major threat to
UK companies there has never been a better time to consider
trade credit insurance. Arthur J. Gallagher ABI award winning
specialist trade credit team recognises the unique nature
of the credit insurance market. Our team of experienced
professionals deal with a wide range of businesses, from
SME to large corporate and global risks. Please contact
us to discuss how a specifically tailored trade credit
solution can benefit your business.
CREDIT MANAGEMENT SOFTWARE
Prof. Schumann GmbH
innovative information systems
Weender Landstr. 23, 37130 Göttingen, Germany
T: +49 551 38315 0 F: +49 551 38315 20
E: info@prof-schumann.de W: www.prof-schumann.de
Our Credit Application Manager (CAM) is a leading credit
risk management solution for major corporations, as well as
insurance, factoring and leasing companies. In their daily work,
CAM allows credit and sales managers to call up all the available
information about a customer or risk in a few seconds for decision
support: real-time data from wherever they are. CAM keeps an
eye on customers whose payment behaviour stands out or who
have overdue invoices! CAM provides an up-to-date forecast
of customers’ payments. Additionally, CAM has automated
interfaces for connecting to leading suppliers of company credit
data, payment record pools and commercial credit insurers. The
system is characterised by its great flexibility. We have years
of experience in consulting and software support for accounts
receivable management.
Top Service Ltd
2&3 Regents Court, Farmoor Lane, Redditch,
Worcestershire, B98 0SD
T: 0152 750 3990.
E: enquiries@top-service.co.uk
W: www.top-service.co.uk
Top Service is the only credit reference and debt recovery
agency to specialise in the UK construction sector. Top
Service customers benefit from sector specific information,
detailed payment history intelligence and realtime trade
references in addition to standard credit information.
There are currently 3,000 construction sector companies
subscribing to the service, ranging from multi-national
organisations to small family firms. The company prides
itself on high levels of customer service and does not tie
its customers into restrictive contracts. Top Service offers
a 25% discount to all CICM Members as well as four free
credit checks of your choice.
CREDIT INSURANCE
Credica Ltd
Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT
T: 01235 856400
E: info@credica.co.uk
W: www.credica.co.uk
Our highly configurable and extremely cost effective Collections
and Query Management System has been designed with 3 goals
in mind:
• To improve your cashflow
• To reduce your cost to collect
• To provide meaningful analysis of your business
Evolving over 15 years and driven by the input of 1000s of
Credit Professionals across the UK and Europe, our system is
successfully providing significant and measurable benefits for our
diverse portfolio of clients.
We would love to hear from you if you feel you would benefit from
our ‘no nonsense’ and human approach to computer software.
STA International
3rd Floor, Colman House, King Street, Maidstone, ME14 1DN
T: +44(0)844 324 0660.
E: enquiries@staonline.com
W: http://www.stainternational.com
Getting Business Paid
STA is an award winning B2B and B2C debt collection, receivables
management and tracing supplier. ISO9001 quality accredited,
and with the CSAs Collector Accreditation Initiative, duty-of-care
is as important to us as it is to you. In the past 12 months we’ve
collected from 138 countries worldwide; with Your Debts Online
giving you transparent access to our collection success and the
cost of each and account placed with us for collection. Collected
funds are remitted via BACS. We look forward to getting your
business paid.
EFCIS Limited t/as ICBA UK
Specialist Trade Credit Insurance Broker
The Office, Mill House Farm,
Mill Street, Hastingwood,
Essex, CM17 9JF
T: 01279 437662
E: amoylan@efcis.com
W: www.efcis.com
EFCIS Limited - Trade Credit Insurance, Debt Collection,
Dispute Resolution and Legal action for small/medium &
multinational businesses. EFCIS secures limits for clients
where the financials alone do not support the full limit. We are
tenacious when negotiating settlement of claims, securing full
payment for claims and proactively working with our clients in
claims avoidance. We are the industry’s only Broker to develop
policy compliance software to ensure client’s maximum benefit
and protection from the policy. We believe that a well-managed
ledger supports business growth within increased profit and an
improved return on investment.
Co-pilot Limited
73 Flask Walk, London, NW3 1ET
T: +44(0) 20 7813 2182
E: info@co-pilot.co.uk
W: www.co-pilot.co.uk
Credit Managers who manage large or multiple ledgers have
come to realise that they need to use specialist software to
achieve or maintain performance improvement – be that risk,
collections or both.
For many Credit Managers a key question is where to start.
How do you examine and evaluate the options? How and
when do you start the budgeting process? What are the
steps?
Co-pilot has advised on credit management software for a
number of years. We have good knowledge of the available
solutions, what’s good, how they work and what type of
solution best fits given situations. We combine this with
considerable experience of credit management Best Practice
so that you can pull everything together into one place and
achieve a flexible and sustainable position going forward.
We work with you through a structured evaluation process
which is designed to enable you to have a clear view of
what you can achieve going forward, what is practicable,
the business case implications, the preferred supplier(s) and
what the implementation process would sensibly look like (in
our opinion, there is no such thing as “Plug and play”).
The recognised standard in credit management
www.cicm.com April 2015
61

Cr£ditWho?
CICM Directory of Services
CREDIT MANAGEMENT SOFTWARE
FOR INFORMATION, OPTIONS
AND PRICING PLEASE EMAIL
anthony.cave@cabbell.co.uk
RECRUITMENT
OnGuard
40 Gracechurch Street, London, EC3V 0BT
T: 0203 4403 825
E: info@onguard.com
W: www.onguard.co.uk
OnGuard is a leading supplier of sophisticated software in which
Credit, Collections, Complaints and Cash Allocation can be
integrated in a single solution. With customers around the world
we offer a truly global, proven, low-risk high-value proposition
which focusses on maintaining positive customer relationships
helping to contribute to improving your competitive edge. Our
integrated accounts receivables solution enables you to achieve
faster payment of your invoices plus the benefits of improved
insights into customer behaviour and valuable time savings. This
not only results in process optimisation, cost savings, a lower
DSO and reduced write-offs but contributes to a stronger,
positive relationship with your valued customers. See more at
www.onguard.co.uk.
SIDETRADE
Sidetrade UK: Amadeus House, Floral Street, Covent
Garden, London WC2E 9DP
T: +44 203 608 9850
E: Samantha@sidetrade.com
W: wwwsidetrade.co.uk
Sidetrade offers companies the opportunity to digitise the
management of their financial relationships with customers.
Sidetrade's market-leading solutions, complementary to ERPs,
meet the challenges of securing what is often a company's
largest asset, its accounts receivable, by reducing late payments
and controlling customer risk. With sales in 65 countries and 34
million invoices managed annually, the Group enables 69,000
users from companies of all sizes and all sectors to collaborate
via its cloud solution and accelerate cash-flow generation.
FINANCIAL PR
Hays Credit Management
107 Cheapside, London, EC2V 6DN
T: 07834 260029
E: karen.young@hays.com
W: www.hays.co.uk/creditcontrol
Hays Credit Management is working in partnership with the CICM
and specialise in placing experts into credit control jobs and
credit management jobs. Hays understands the demands of this
challenging environment and the skills required to thrive within
it. Whatever your needs, we have temporary, permanent and
contract based opportunities to find your ideal role. Our candidate
registration process is unrivalled, including face-to-face screening
interviews and a credit control skills test developed exclusively
for Hays by the CICM. We offer CICM members a priority service
and can provide advice across a wide spectrum of job search and
recruitment issues.
PORTFOLIO
CREDIT CONTROL
Safe Computing Limited
20, Freeschool Lane, Leicester, LE1 4FY
T: 0844 583 2134
E: info@safecomputing.co.uk
W: www.safe-creditcontrol.co.uk
Designed to manage your customer credit accounts effectively,
Safe credit control enables your credit management team to:
• improve cash flow
• reduce debtor days
• increase customer service
• cut the cost of cash collection
• eliminate manual processes
• speed up the query resolution process
Our unique approach is centred on changing the perception of
the credit control function, from a series of reactive processes
to proactive ones. Credit controllers are traditionally regarded
as an essential element in business, to chase late payments
and respond to customer queries. Safe credit control has
taken the concepts of customer relationship management
(CRM) and applied it to the credit control function, enabling
a softer, service orientated team of customer service
representatives.
Tinubu Square UK
Holland House, 4 Bury Street, London EC3A 5AW
T: +44 (0)207 469 2577
E: uksales@tinubu.com
W: www.tinubu.com
Tinubu Square’s mission is to control and minimise trade credit
risk. Founded in 2001, Tinubu Square has become a trusted
source of trade credit intelligence for credit insurance leaders
and now offers the service to corporate customers enabling
them to assess their credit risk. Tinubu Square’s B2B Credit
Risk Intelligence solutions – including Tinubu Risk Management
Center (RMC) cloud-based SaaS platform, Tinubu Credit Intelligence
service with real-time credit risk intelligence reporting
and Tinubu Risk Analyst advisory service provide companies
with an accurate picture of their customers’ financial health from
sales and marketing through the entire order-to-cash cycle.
Based in Paris, Tinubu Square has offices in London, Brussels,
Singapore and Mumbai.
Gravity London
Floor 6/7, Gravity London, 69 Wilson St, London, EC21 2BB
T: +44(0)207 330 8888.
E: sfeast@gravitylondon.com
W: www.gravitylondon.com
Gravity is an award winning full service PR and advertising
business that is regularly benchmarked as being one of the best
in its field. It has a particular expertise in the credit sector, building
long-term relationships with some of the industry’s best-known
brands working on often challenging briefs. As the partner
agency for the Credit Services Association (CSA) for the past 13
years, and the Chartered Institute of Credit Management since
2006, it understands the key issues affecting the credit industry
and what works and what doesn’t in supporting its clients in the
media and beyond.
PROFESSIONAL BODIES
CICMos (CICM Online Services)
www.CICM.com
T: 01780 722 907.
E: training@cicm.com
W: www.cicmos.com
CICMOS has been designed to help busy credit managers by
providing them with a suite of online tools to support and
quickly develop their teams. The virtual learning centre is an
open platform system, accessed via the website, which is
easy to use, modular and each module is completely optional,
which means the system can be tailored to suit specific
requirements and time constraints. This wide ranging system
is more than just a training tool it is easy to set up and use
and can be accessed securely via the CICMOS website for a
low annual subscription.
Chartered Institute of
Credit Management (CICM)
The Water Mill, Station Road, South Luffenham,
OAKHAM, LE15 8NB
T: 01780 722910 E: info@cicm.com
W: wwwcicm.com
The Chartered Institute of Credit Management (CICM) is Europe’s
largest credit management organisation. The trusted leader
in expertise for all credit matters, it represents the profession
across trade, consumer, and export credit, and all credit-related
services. Formed over 70 years ago, it is the only such organisation
accredited by Ofqual and it offers a comprehensive
range of services and bespoke solutions for the credit professional
(www.cicm.com) as well as services and advice for the
wider business community (www.creditmanagement.org.uk).
Portfolio Credit Control
Portfolio Credit Control, New Liverpool House,
15 Eldon Street, London, EC2M 7LD
T: 0207 650 3199
E: recruitment@portfoliocreditcontrol.com
W: www.portfoliocreditcontrol.com
Portfolio Credit Control, solely specialises in the recruitment of
permanent, temporary and contract Credit Control, Accounts
Receivable and Collections staff. Part of an award winning
recruiter we speak to and meet credit controllers all day everyday
understanding their skills and backgrounds to provide you with tried
and tested credit control professionals. We have achieved enormous
growth because we offer a uniquely specialist approach to our
clients, with a commitment to service delivery that exceeds your
expectations every single time.
Jobs in Credit
Foxhall Business Centre, Foxhall Road, Nottingham, NG7 6LH
T: 0207 316 9533
E: info@jobsincredit.com
W: www.jobsincredit.com
Established in 2004, jobsincredit.com is the only UK job board
dedicated to the credit and collections industry. The site attracts
over 30,000 monthly visits, and advertises over 1,000 roles from
a broad mix of employers and recruiters. For candidates our
service is free of charge, and offers an easy way of searching
for and securing your next role. For employers jobsincredit.com
offers the most cost effective recruitment method, no matter the
seniority. Many leading employers are clients, including Barclays,
RBS, Deloitte, Centrica Barclaycard. For more information about
advertising your vacancy, please visit www.jobsincredit.com
ATTENTION PRODUCT
AND SERVICE PROVIDERS
You can connect with them all now by
having a listing in CreditWho.
For just £1,247 + VAT per annum:
- your business will be listed in Credit
Management magazine, which goes out to
all our members and subscribers and has an
estimated readership of over 25,000
To book your listing in CreditWho contact
Anthony Cave on 020 3603 7934
62 April 2015 www.cicm.com
The recognised standard in credit management

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do not wish to receive such notification please tick here q
If you subsequently decide that you do not wish to
receive such notifications please email the Institute at
unsubscribe@cicm.com or write to the Data Controller at
the address given below.
The Data Protection Act gives you the right at any time to
see a copy of all the data that we hold about you. If you
would like a copy, please send a letter requesting this
information together with a cheque for £10 payable to :
The Chartered Institute of Credit Management to:
Data Controller, CICM, The Water Mill, Station Road,
South Luffenham, OAKHAM, LE15 8NB.
CREDITMAN by MIKE FLANNAGAN
ACROSS :
1. Animal foot
5. Feints
10. Aquatic plant
14. Ammunition
15. Watchful
16. Coil
17. Inheritor
18. Discourteous
20. Aerial
22. Weird
23. Best seller
24. S S S S
25. They keep dozing off
32. Paperlike cloths
33. German iris
34. A type of large sandwich
37. Breezed through
38. Orderly grouping
DOWN :
1. Laugh
2. Portent
3. Leave out
4. Brow
5. Chipper
6. Forearm bone
7. Beer barrel
8. Makes a mistake
9. Immediately
10. Assumed name
11. Diving birds
12. Edge tool
13. Church recesses
19. Pepperwort
21. Bites
25. Sun
26. Delicate
27. Type of sword
28. Mob
29. Made a mistake
39. Dad
40. Type of whiskey
41. Law and _____
42. Moses' brother
43. Running away
45. Sight-related
49. Big fuss
50. Pee-pee
53. Terminate
57. Permissiveness
59. Doing nothing
60. Always
61. A French dance
62. Tidy
63. A musical pause
64. Hinder
65. Horse feed
30. A kind of macaw
31. Do it yourself
34. Indian dress
35. Atop
36. Pow!
38. Biblical boat
39. Light tan horse
41. Academy award
42. Contributes
44. Prissy
45. Not inner
46. Demonstrate
47. Anagram of "Islet"
48. Unreactive
51. Labels
52. French for "State"
53. Bad end
54. Notion
55. Thin strip
56. Collections
58. Old World vine
THERE WILL BE THREE PRIZES OF
£20 EACH FOR THE FIRST THREE NAMES
DRAWN ON 9TH APRIL
CROSSWORD SOLUTION 27
andrew.morris
@cicm.com
MARCH CROSSWORD
WINNERS ARE :
Tony John FCICM
Philip H Bennett
Chris Gait
For the chance of winning £20,
forward your completed solution to:
Andrew Morris, Chartered Institute of
Credit Management, The Water Mill,
Station Road, South Luffenham,
OAKHAM, LE15 8NB
or email: andrew.morris@cicm.com
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The recognised standard in credit management www.cicm.com April 2015
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