Credit Management magazine October 2017

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MAKE YOUR CASE AUTHOR – HEATHER GREIG-SMITH to apply the same high standards across the board.” Derek Usher, Cabot Credit Management’s Managing Director for UK debt purchase, agrees that asking the FCA to regulate all debts is not practical. “Achieving this would mean considerable practical difficulties, involving changes to legislation and providing the FCA with considerably more resources. Existing standards have a positive impact, and our belief is that the current framework supports consistent and fair customer outcomes,” he says. Dewi Fox, Managing Director of ARC Europe and also a CICM Think Tank member has similar doubts: “Anything that supports a better, more consistent and even-handed approach to how customers are dealt with has to be a good thing, though whether the FCA is currently equipped to regulate across such a diverse number of industries and debt types is a moot point.” CHANGING TIMES Change is happening within areas that are not subject to FCA authorisation. For example, Hammersmith & Fulham Council has entered a joint venture partnership with debt buyer 1st Credit – H&F Ethical Debt Collections – to change the way council debts are collected and spread an FCA-standard model to other public sector bodies. Michael Hainge is Hammersmith & Fulham Council’s Commercial Director. He says raising the quality of collections is important. “Debt collection suffers from two-tier regulation,” he says. “From the customer’s perspective, the current system results in unfair inconsistencies, with collection approaches based on debt type instead of individual circumstances. “We have set out to reduce the need for bailiffs and bring FCA standards to all debt types, believing this is good for councils and customers. All collection businesses should be held to the same high standards if individuals are to be supported through debt repayment and into financial rehabilitation.” Peter Tutton, Head of Policy for debt charity Stepchange, says industry changes such as these are welcome. “If it means less intrusive enforcement that’s a good thing.” However, he says not all local authorities are making these efforts and there is nothing to compel them to do so. Instead a ‘levelling up of standards’ is needed across the board. “It isn’t necessarily about having a single regulator for debt collection, there are possible legal complexities regarding the jurisdictions of the various regulators. What is critical is to ensure common standards and oversight for debt collection practices across all currently regulated sectors and ensuring proper regulation of areas where it is currently inadequate, in particular the bailiffs and government debt collection.” He adds: “We should expect all creditors to treat people in a similar way, setting affordable and sustainable repayments and not acting aggressively and making debt problems worse.” ROGUE TRADERS The Credit Services Association does not believe the current system of regulation is ideal either. President John Ricketts says it leaves the industry open to rogue traders. It also creates a massive administrative burden for debt collection businesses in keeping abreast of several sets of codes and standards. He adds that there is a perceived two-tier system that non FCA-regulated firms can do nothing to counter. This would also make it unfair for non-regulated creditors to insist on using FCA-authorised suppliers. “We should expect all creditors to treat people in a similar way, setting affordable and sustainable repayments and not acting aggressively and making debt problems worse.” “Non-regulated DCAs can’t be regulated by the FCA because they don’t work credit agreement debt – it doesn’t mean they are second-class debt collection businesses.” John acknowledges the barriers to having a single regulator. Instead, the CSA is lobbying the existing range of regulators and the UK Regulators Network to adopt the CSA Code of Practice as a single set of standards that all collections organisations can follow. “We can’t step into a regulatory role, but our code of conduct can play a part,” he says. “It is wrong that we have so many regulators all with an interest in regulating the debt collection sector. We are lobbying UKRN and those regulators who don’t have an FCA-equivalent approach. If there is a gap in their regulations they could fill that gap with the CSA Code of Practice.” Peter Tutton agrees there is a role for the UK Regulators Network to play in coordinating standards across its members. He says the concept of following one code of practice is worth discussing, though it would need careful consideration as to whether the CSA’s code was the right set of guidelines. In the meantime, the industry continues its own post-FCA evolution with the hope that higher standards for some means the incentive for all to rise up and meet those – or face losing out to those that do. The Recognised Standard / www.cicm.com / November 2017 / PAGE 34
For more information call 01206 322 575 info@safecomputing.co.uk www.safe-financials.co.uk The Recognised Standard / www.cicm.com / November 2017 / PAGE 35
Page 1 and 2: CREDIT MANAGEMENT CM NOVEMBER 2017
Page 3 and 4: NOVEMBER 2017 www.cicm.com CONTENTS
Page 5 and 6: OURAML SOLUTION WILL HELPYOU SEAL T
Page 7 and 8: Online retail sales on the rise UK
Page 9 and 10: Support for customers with addictio
Page 11 and 12: INSOLVENCY The ‘d’ problem - re
Page 13 and 14: OPINION Money for Nothing? Speaking
Page 15 and 16: OPINION AUTHOR - PHIL ARISS mass ad
Page 17 and 18: THE RECOGNISED STANDARD CICM Britis
Page 19 and 20: FRANK Anderson is a contented man.
Page 21 and 22: TOWN AND COUNTRY AUTHOR - SEAN FEAS
Page 23 and 24: HQ PROFILE - MARKETING AND INFORMAT
Page 25 and 26: COUNTRY FOCUS AUTHOR - ADAM BERNSTE
Page 27 and 28: INTERVIEW FECMA Country Profile In
Page 29 and 30: TRADE TALK AEO - putting cargo in t
Page 31 and 32: US BUDGET SQUABBLE CONTINUES THE US
Page 33: COLLECTIONS businesses are subject
Page 37 and 38: OPINION AUTHOR - CHRIS SANDERS will
Page 39 and 40: PAYMENT TRENDS Sector Getting Bette
Page 41 and 42: THE CREDIT CONTROL RECRUITMENT SPEC
Page 43 and 44: OPINION AUTHOR - DEREK SCOTT ‘‘
Page 45 and 46: Don't miss this essential legal upd
Page 47 and 48: EDUCATION Train to Gain UNITED UTIL
Page 49 and 50: THE 2017 CICM TURNER LECTURE Friday
Page 51 and 52: OPINION Five best ways to prepare f
Page 53 and 54: Proud supporters of CICMQ With over
Page 55 and 56: BE ONE CLICK AWAY FROM OUR WEBSITE
Page 57 and 58: New CICM members The Institute welc
Page 59 and 60: BRANCH NEWS Wine and Wisdom Kent Br
Page 61 and 62: CREDIT CONTROLLER ACHIEVE YOUR FULL
Page 63 and 64: Cr£ditWho? CICM Directory of Servi
Page 65 and 66: Cr£ditWho? CICM Directory of Servi
Page 67 and 68: Puzzle by © 2012 Mirroreyes Intern

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