Credit Management magazine September 2017

NEWS
IN BRIEF
Card fraud hits
record high
CARD fraud losses for 19 European countries
hit a new high at approximately €1.8 billion
last year, while the UK saw the highest
losses at £618 million, a nine percent rise
over 2015, topping the previous peak in card
fraud set in 2008 after the introduction of
chip and PIN.
Card not present (CNP) fraud has gone
from 50 percent of gross fraud losses in 2008
to 70 percent in 2016. Ten countries saw an
increase in fraud losses, while eight saw a
decrease. The map is based on data from
Euromonitor International, with additional
information from the UK Cards Association.
In 2015, the UK’s card fraud rise was the
highest in Europe, but in 2016 two countries
saw higher rises — Poland (+ten percent)
and Sweden (+18 percent). The UK’s rise
from 2015 to 2016 was just half of that from
2014 to 2015.
France had the highest basis points at
8.9 (ratio of fraud losses to sales) among the
19 European countries, compared to seven
basis points for the UK. However, French
card spending is half that in UK, making
UK losses much greater. Together, the UK
and France account for 73 percent of the
total loses among the 19 countries in 2016,
followed by Germany, Spain, Russia, Italy
and Sweden. theukcardsassociation.org.uk
Council tries
new approach
HAMMERSMITH and Fulham Council
and 1st Credit have launched a new joint
venture, H&F Ethical Debt Collections. The
partnership is aimed at changing the way
public sector debts are handled, ending the
two-tier treatment of customers in debt by
applying FCA standards to public as well as
private sector debts.
H&F Ethical Debt Collections is
committed to drastically reducing the use
of bailiffs in the public sector which, it says,
often exacerbates hardship for individuals
and places greater burden on the public
purse.
H&F Ethical Debt Collections has
already started taking over Hammersmith
and Fulham Council’s collections,
beginning with former tenant arrears and
housing benefit overpayments. Other
debt-types will follow on a phased basis,
with council departments given the
power to decide how and when to use
the services, sharing their insights and
expertise.
As well as debt recovery and
commercial aims, the joint venture will
help residents avoid debt by identifying
individuals at risk of falling into financial
difficulty and working with them to avoid
that. 1stcredit.com
UKCCC AWARD
The UK Credit & Collections Conference
(UKCCC), the Credit Services Association's
2016 flagship event, has been named
Conference of the Year by the Trade
Association Forum (TAF) in its Best Practice
Awards 2017.
The award judges were looking for
an outstanding event which featured
‘particularly relevant and informative
content specific to the audience’, as well as
utilising ‘innovative technology’ and which
received ‘exceptional attendee feedback’.
The TAF’s Events and Sponsorship Manager
described UKCCC as ‘inspiring’. csa-uk.com
LACKING CONFIDENCE
Bibby says there are signs that the economy
may be heading for a downturn, according
to the latest SME Confidence Tracker report.
Data for Q2 reveals that bad debt – the
value of unpaid invoices written off by
each business – has jumped to £20,403, an
increase of more than 70 percent compared
to just a year ago. The latest research also
shows a trend of declining investment
among SMEs. One in five (20 percent) said
uncertainty over Brexit was preventing them
from investing in their businesses over the
months ahead. bibbyfinancialservices.com
STEPPING DOWN
The Chairman of the Financial Conduct
Authority (FCA) and the Payment Systems
Regulator (PSR), John Griffith-Jones, has
confirmed he will leave both organisations
at the end of his term of office, on 31 March
2018. fca.org.uk
CSA agrees discount with Royal Mail
The Credit Services Association has secured
an agreement with Royal Mail to bring
the Test & Innovate Scheme (TIS) to the
collections industry.
TIS is an incentive for trying new ideas in
mail applications that could prompt higher
response rates from customers. These range
from changes to letter content and layout
through to envelope changes such as the
use of indicia based on stamp images.
Members will also have the support
of Media Specialists from Royal Mail
MarketReach who can bring to bear their
wealth of experience through insight,
research and media tools, which could help
improve the effectiveness of members’ mail
packs and boost ROI.
CSA members can use TIS to test new
mail applications and receive a discount
rate of 30 percent off the access price (6.5p –
23p per item) during a six-month test period
and then a further 10 percent discount off
the access price (2.2p – 7.7p per item) for
the following six months for tests which
progress to full roll out.
Members will receive these discounts
in the form of postage credits regardless
of whether the postings are made through
Royal Mail, an Access Operator or another
postal delivery provider.
John Ricketts, President of the CSA
who led the discussions, has also agreed
with Royal Mail to further enhance TIS to
include 'champion/challenger’ strategy tests
(where the 'challenger' strategy contains
an increase in letter frequency). “Royal Mail
will also be making its ‘Media Specialist
Team’ available to members to advise on
how to innovate in mail,” he
says. csa-uk.com
“Royal Mail will also
be making its ‘Media
Specialist Team’
available to members
to advise on how to
innovate in mail”
John Ricketts
President of the CSA
The Recognised Standard / www.cicm.com / September 2017 / PAGE 7