201509 CM September

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CICM NEWS CMNEWS A round-up of news stories from the world of consumer and commercial credit. By SEAN FEAST CICM WELCOMES NEW TSAR PERFORMER THE small business community has broadly welcomed the announcement by Government last month of the appointment of a new Small Business Commissioner to help mediate in disputes with larger customers, including those relating to payment issues. Some are concerned, however, that without real ‘teeth’ the good intentions of the so-called late payment ‘Tsar’ may not give the desired impact that Ministers and business leaders are looking for. But the Chartered Institute of Credit Management’s Chief Executive, Philip King, is more hopeful: “The Government tells us that the Commissioner will give small businesses access to advice, support, mediation and conciliation services, and encourage small suppliers and larger customers to get round the table and sort out disputes at a fraction of the cost of going to court. These are laudable intentions,” he says. “The commissioner will also, we are told, ‘see where further action is required to clamp down on unfair practices’ and this is again to be applauded. Whereas we can understand the business community’s concerns, if the new ‘Tsar’ effectively becomes the conduit to channel those in need of help to areas where best advice already exists, then we can see the advantages.” Small businesses, Philip says, often struggle to know where to go for support: “If the Commissioner becomes a one-stop entry point it will be a valuable resource,” he adds. Some commentators have suggested that the appointment is a gimmick, and that the Government would be better investing in existing initiatives, including the Prompt Payment Code administered by the CICM. Philip has some sympathy with this view: “We have said for some time that while the Code is proving a success, despite certain claims to the contrary, it needs broader support. “I hope the role of the Commissioner will be to act as an ambassador and promoter of good practice as well as addressing poorer practice. The Code is comprised of signatories who are committed to setting the highest standards and it should naturally fall within his remit. This will be to the advantage of all sides.” Through the Prompt Payment Code, small businesses are already able to challenge the payment practices of their larger customers. Since its launch, 100 percent of these challenges have been successful. “We already have a proven track record in addressing poor practice and the infrastructure is in place to give the Commissioner the ‘teeth’ that many are looking for.” Philip adds. “What we need, however, is more people to recognise that the tool is there and to use it. The Small Business Commissioner should provide the opportunity and the impetus for that to happen.” The Government tells us that the Commissioner will give small businesses access to advice, support, mediation and conciliation services, and encourage small suppliers and larger customers to get round the table and sort out disputes at a fraction of the cost of going to court. These are laudable intentions. – PHILIP KING Chief Executive, CICM 6 September 2015 www.cicm.com The recognised standard in credit management
NEWS IN BRIEF WORLDWIDE TEST CICM candidates around the world should now be able to find a convenient exam centre for Credit Management, Business Law and Business Environment following an agreement with Pearson Vue for CICM candidates to have access to their global network of online test centres. Candidates will be able to book their exam through the usual processes via the CICM website or the Pearson Vue call centre. Exams cost £103 each. If you have any queries contact the CICM Awarding Body at awardingbody@cicm.com. DEBT CHARITY WARNS OF LULL BEFORE STORM CHANGES to working tax credits, child benefit and other cuts to social security payments announced by the Government earlier in the year have not yet resulted in an increase in consumers falling into debt. But Richard Haymes of StepChange Debt Charity says that the full impact of the cuts will not be apparent until April 2016: “Although we have not seen a noticeable rise in calls to the charity for help, the fact is that people will have less money coming in and this will probably lead to a surge of individuals struggling with debt.” Speaking at the CICM Think Tank in August, Richard also said that recent pension reforms have similarly not yet led to a change in the debt environment: “We have not yet seen people cashing in their pensions to pay off a debt,” he explained. “But there are a number who are asking for advice on whether that is a good option.” According to the Charity, almost three quarters of its clients now live in rented accommodation. The proportion of single parents has also risen, so too the number of debtors under 25. “Homeowners have more options available to them in managing their debts compared to those in the rented sector,” he added, “and continuing low interest rates is also helping.” The average unsecured debt per client currently stands at £14,650, with the levels of debt owed to catalogue companies highlighted as a particularly worrying trend. Debts resulting from payday loans appear to be impacting younger clients; 42.5 percent of clients under 25 have a payday loan debt compared to less than five percent of clients aged 60 or over. stepchange.org NEW CRITERIA FOR ENFORCEMENT INVESTIGATIONS NEW CHAIR THE Payment Systems Regulator (PSR), the new economic regulator for UK payment systems, has appointed Ruth Evans as the Chair of the Payments Strategy Forum. The Forum will bring together the payments industry and representatives of all those that use payment systems (banks and other large financial firms, consumers, small and medium sized businesses, technology providers, and many more) to work in partnership and drive collaborative innovation in payments. psr.org.uk FIRE IT UP THE winner of the CICM UK Credit Management Index CMI Q2 draw is Julie Newman MCICM, Global Credit Manager at INEOS Nitriles (UK). She wins a Kindle Fire HD, kindly provided by Tinubu Square, Corporate Partner and sponsor of the CMI. THE Financial Conduct Authority (FCA) has updated the criteria and outlined the process it uses when deciding whether to refer a firm or individual to its enforcement division for a formal investigation. Where misconduct is proved, an enforcement investigation can lead to fines, bans and suspensions. But enforcement is only one of a range of tools available to the FCA. The new process clarifies how the FCA decides which regulatory tool is the most likely to fulfil its objectives in each individual case. Georgina Philippou, Acting Director of Enforcement and Market Oversight at the FCA, says enforcement is not the only tool at its disposal where we see misconduct by firms or individuals: “Nor is it the most appropriate one to use in every case. Firms and the public will now have a clearer understanding of the questions we ask ourselves before we start a formal investigation.” When deciding whether to investigate, the FCA considers: whether an enforcement investigation is likely to further the FCA’s aims and statutory objectives; the strength of the evidence and whether an enforcement investigation is likely to be proportionate; and what purpose or goal would be served if the FCA were to take enforcement action in this case. Elsewhere, the number of dawn raids carried out by the FCA has fallen by 60 percent in the last year, falling from 20 in 2013 to only eight in 2014, its lowest level since the start of the financial crisis. The figures are based on research by law firm RPC. fca.org.uk The recognised standard in credit management www.cicm.com September 2015 7
Page 1 and 2: CREDIT MANAGEMENT CM THE CICM JOURN
Page 3 and 4: CONTENTS SEPTEMBER 2015 www.cicm.co
Page 5: You’re in safe hands Solutions fo
Page 9 and 10: CICM NEWS D&B REVISES GROWTH FORECA
Page 11: CREDIT INSOLVENCY NEWS CIVIL LITIGA
Page 14 and 15: FEATURE From a scorecard perspect
Page 16 and 17: CICMQ NEWS FIRST TIME ACCREDITATION
Page 18 and 19: ANALYSIS If he is happy to take you
Page 20 and 21: AWARD WINNERS THE WINNERS TAKE IT A
Page 22 and 23: INTERVIEW • CHARTERED INSTITUTE O
Page 24 and 25: LEGAL MATTERS WHAT TO DO IF A DEBTO
Page 26 and 27: OPINION DEBT DOWN UNDER Leigh Berkl
Page 28 and 29: LEGAL COLUMN CAROUSEL FRAUD Peter W
Page 30 and 31: STORM CLOUDS GATHERING 5 6 7 8 Jaso
Page 32 and 33: DATA & ANALYTICS BIG IS BEAUTIFUL S
Page 34 and 35: SOAPBOX CHALLENGE BEATING THE WRONG
Page 36 and 37: INSOLVENCY THE GOOD, THE BAD AND TH
Page 38 and 39: CM Credit Management magazine for c
Page 40 and 41: 2015 EVENTS CALENDAR BE AHEAD OF TH
Page 42 and 43: MONTHLY ROUND-UP OF THE LATEST STOR
Page 44 and 45: EDUCATION STEPCHANGE TO A QUALIFIED
Page 46 and 47: EDUCATION IS IT TIME TO GET QUALIFI
Page 48 and 49: in association with CCR credit exce
Page 50 and 51: www.portfoliocreditcontrol.com At P
Page 52 and 53: FORTHCOMING EVENTS 2015 FULL LIST O
Page 54 and 55: CICM BRANCH NEWS LONDON AND EAST OF
Page 56 and 57:
DON’T MISS YOUR NEXT BIG MOVE IN
Page 58 and 59:
NEW CICM MEMBERS THE INSTITUTE WEL
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Cr£ditWho? CICM Directory of Servi
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Cr£ditWho? CICM Directory of Servi
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201509 CM September

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