Do the right thing, Adviser's and creditors experience of best practice ...

Step 2Using external debt collection agenciesCreditors are responsible for the behaviour ofthe debt collection agency which collects debtson their behalf. These agencies should not beused to protect a creditor’s reputation by puttingcollections at arm’s length.Instead creditors should choose debt collectionagencies by using a range of factors, including thenumber of complaints received about the agency,the number of performing repayment plans thatagency has set up and the specialist services theyoffer to people whose circumstances make it hardfor them to manage money.Creditors should not move accounts between debtcollection agencies when a payment plan is beingmaintained. Instead to promote stability creditorsshould use one agency – as does Provident PersonalCredit which uses CK Edrupt, a firm of solicitors,to administer repayment arrangements on theirbehalf. If accounts are moved between agencies,creditors should make sure that everyone is awareof what is happening. The new debt collectionagency should be given a full account history, andmade aware of any offer of repayment and/or theinvolvement of an advice agency. In addition theperson in debt and any advice agency acting ontheir behalf should be told which debt collectionagency is now acting on the creditor’s behalf andhow payments can be made.Selling debts to debt purchase companiesCreditors are responsible for the behaviourof the firm to whom debts are sold. Debt-sellersshould therefore choose to sell to the firm thatoffers the right price and provides the bestservice to people in debt.For example, Capital One ensures they sellto purchasers who treat their customers to thestandards they have set themselves, and theywill not accept bids from purchasers who donot meet these standards. Capital One thencarries out post sale audits to ensure the debtpurchase company is adhering to their standardsand all relevant legislation, regulatory andself-regulatory regimes.10