Credit Management magazine October 2017

Online retail sales on the rise
UK online retail sales were up by 16.4
percent year-on-year in August, according to
the latest figures from the IMRG Capgemini
Online Retail Sales Index. This makes
August the best month for online retail
growth so far in 2017.
The home sector had a particularly strong
month, with 20.5 percent year-on-year
growth and an average basket value (ABV)
of £130. Clothing also showed good growth
at 17.9 percent, the best performance for this
sector in 2017, and with an ABV up £9 on
August 2016. These sectors both contributed
to the highest overall ABV for the month of
August in five years. All this comes despite
August inflation of 2.9 percent, and the
reported 2.4 percent rise in the price of
clothing, which has evidently not served to
deter fashion shoppers yet.
The August results painted a very
different picture for electricals, however,
which suffered its fifth consecutive month
of negative growth – the longest sustained
period of negative growth for this sector
since tracking started it in 2003.
imrg.org
LENDY has announced the repayment
of its largest peer-to-peer loan to date,
which it claims is one of the biggest seen
in the UK’s P2P sector. The property
platform said that the £7.92 million loan
was secured against a property valued at
£12.5 million in Kentish Town. It has been
repaid in full, 21 days ahead of schedule,
FINTECH CO-OPERATION
THE Financial Conduct Authority (FCA) has entered into a co-operation agreement with
the Hong Kong Insurance Authority (IA) to enhance collaboration in supporting fintech
innovation. Under the agreement, the FCA and the IA will cooperate on information
sharing on innovation and referrals of innovative firms seeking to enter the counterpart's
market. The FCA had concluded similar agreements with the Hong Kong Monetary
Authority and the Securities and Futures Commission, to provide a full spectrum of
co-operation and assistance in Fintech innovation in the banking, securities and
insurance sectors in both the UK and Hong Kong markets.
fca.org.uk ia.org.hk
Lendy funds record loan
and has returned 12 percent annual interest
to lenders. The loan, which was made by
almost 3,500 lenders through the platform,
was drawn down in late October 2016, on
a 12-month term. The final payment of
interest will be made to lenders at the end
of October.
lendy.co.uk
>NEWS
IN BRIEF
STEPCHANGING
PLACES
PHIL Andrew has been appointed as
the new Chief Executive of StepChange
Debt Charity. He will take up the post
on 20 November, taking over from Mike
O’Connor CBE. Phil’s most recent role
was as Chief Executive of Working
Links which provides interventions to
disadvantaged and socially-excluded
groups within the UK, Ireland and the
Middle East. Prior to this, Phil held a
number of senior positions in the UK and
France as Chief Executive for Sodexo
Justice Services and Chief Financial
Officer for Sodexo UK and Ireland.
stepchange.org
DRYING UP
OFWAT estimates bad debt currently
adds an average of £21 to each customer’s
yearly bill, and says the industry should
tackle this issue now by identifying
which customers are having difficulties
before they owe too much. It says this
will help reduce business costs and
improve affordability for consumers.
The Water Services Regulation Authority
suggests companies should make
affordability schemes more available,
move to more frequent billing to avoid
the difficulty of having to pay one large
bill each year, and ensure customers
are on the most appropriate tariff
and payment method. The regulator
also suggests improving customer
communication services and looking
to other industries to see how they
deal with similar problems. Ofwat says
water suppliers must also do more to get
money from customers who can afford to
pay their bills but refuse to do so.
ofwat.gov.uk
CSA at Number Ten
THE Credit Services Association (CSA)
has welcomed efforts to remove the cost
to the individual for the completion of the
Debt and Mental Health Evidence Form
(D&MHEF).
At a meeting held recently at Number
Ten Downing Street, CSA President,
John Ricketts and Chief Executive, Peter
Wallwork joined the Minister for Mental
Health, Jackie Doyle-Price, and senior
executives from the British Medical
Association (BMA), the Royal College of
Psychiatrists, the Money Advice Trust
(MAT), the Money Advice Liaison Group
(MALG), UK Finance, the Department of
Health, and the Mental Health Policy Unit
(MHPU) to discuss the evidence form
initiative driven by the Money and Mental
Health Policy Institute (M&MHPI).
“There was general agreement that if
and when the form is considered necessary,
any cost should not be borne by the
customer. Though there were, of course,
different opinions as to how this is best
achieved,” John Ricketts says.
“It was a positive start to the dialogue,
and although there are opposing views, we
totally support the Government’s ambition,
and the ambition of the Minister, to
continue to support the most vulnerable in
society to ultimately becoming debt free.”
csa-uk.com
The Recognised Standard / www.cicm.com / November 2017 / PAGE 7