Credit Management June 2018

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NEWS IN BRIEF David Kerr steps down AFTER ten years at the helm of the Insolvency Practitioner’s Association (IPA’s) secretariat team, David Kerr FIPA MCICM is stepping down as CEO to explore new challenges and opportunities in the profession and beyond. During David’s tenure, the IPA has grown considerably at a time when the insolvency market generally has been shrinking. The Association now regulates more than 550 licensed appointment-takers, including those of the Association of Chartered Certified Accountants (ACCA) under the terms of a collaboration agreement entered into in 2016, and has seen its regulated IP population increase by 50 percent over the period. David, a regular contributor to Credit Management, has overseen the development of the IPA into one of the two main insolvency regulators in England and Wales and leaves the organisation in a strong position as the professional body recognised as the specialist in this sector. “The IPA is now firmly established as a professional body with a reputation as a regulator that is second to none, but importantly also as an organisation that understands the insolvency profession and those who choose to make their careers in this specialist field,” David says. “It has a great team at its core, many of whom are insolvency people through and through, and it has been my privilege to serve the Association and its members for the last ten years and help strengthen its standing in the insolvency community and among stakeholders.” insolvency-practitioners.org.uk Knowledge Hub The CICM Knowledge Hub is now officially open, giving members access to more than 1,000 resources covering the entire credit management lifecycle, anytime, anywhere. Key articles, research papers from industry experts, webinars, and best-practice guidance can be found in an easy to search format. Stay up-to-date with new and topical resources added each month. Members can also access tailored e-learning courses on a wide range of subjects, and certificates make learning visible as you track your progress. cicm.com/cicm-knowledge-hub Oh Lord! King’s dismay at poor research PHILIP King, Chief Executive of the CICM, has expressed dismay at the quality of debate taking place in the House of Lords and the Commons surrounding the issue of late payment. In a blog posting in May, Philip referred to a specific debate in the House of Lords to ask Her Majesty’s Government of their assessment of the effectiveness of the Prompt Payment Code. “My gripe here,” he says, “is not the criticism voiced but the quality of research and debate.” The debate didn’t get off to a good start: “In her opening statement, Baroness Burt referred to the Payment Practices Reporting Regulations under which, from this April, large businesses must provide details every six months of their standard payment terms, how they resolve payment disputes and the percentage of payments they make within 30 and 60 days. “The Regulations actually came into effect in April 2017, not April 2018, and companies have been reporting terms since October 2017, and well over 1,000 have so far done so. “Should the Baroness’s researcher not have known this, or at least been able to find out since the data is available on a public portal?” Philip writes. ‘A number of Lords contributed to the debate and much was said. Did any of the Lords or their researchers speak to the CICM, which manages the Code for government, and ask for facts or data? No. Did any of them speak to the CICM to verify their assertions in the House? No. Would the CICM have been willing to answer their questions or queries? Yes, of course. Would the debate have been improved if it had been better informed? Yes. “Sometimes,” he concluded, “I think we deserve better.” “Should the Baroness’s researcher not have known this, or at least been able to find out since the data is available on a public portal?” Call to cap the cost of doorstep loans THE MP for Horsham, Jeremy Quin, has called for the Financial Conduct Authority (FCA) to extend the payday loan cap to doorstep lending. In response, the Prime Minister, Theresa May, said that the Government ‘is committed to ensuring that consumers are protected from unfair lending practices’ and has ‘given the FCA new powers to cap the cost of credit and they'll do so if they believe it's necessary to protect consumers’. Citizens Advice Chief Executive, Gillian Guy, believes there's a need for a cap on the cost of rent-to-own and doorstep loans: “As the Prime Minister says, the FCA has the powers to cap the cost of these forms of credit and better protect those consumers who are falling victim to their high costs. "We know the easy refinancing of doorstep loans can lead to problem debt. Our figures show that one in two of the people we helped with rent-to-own debts borrowed again in order to meet their repayments."People should never have to pay back more than twice what they borrow, which is why we're calling for the FCA to use their high-cost credit review to put in place a cap in these markets.” Ms Guy says that the Government's payday loan cap more than halved the number of people with unmanageable payday loan debts: “By extending this cap to doorstep lending and rent-to-own, our research shows the FCA could protect consumers from paying up to £165 million a year." fca.org.uk citizensadvice.org.uk The Recognised Standard / www.cicm.com / June 2018 / PAGE 10
FCA alerts public to rising number of loan fee scams The Financial Conduct Authority (FCA) is urging the public to be alert to the growing threat of loan fee scams targeting borrowers. Last year more than £3.5 million was lost to loan fee fraud and reports to the FCA consumer helpline almost doubled. Victims of loan fee fraud are often targeted while searching for loans online and are then contacted by fraudsters offering a loan. The scammer tells the victim they have to pay an upfront fee for the loan which they ultimately never receive. Once the first payment is made victims are often persuaded to make multiple payments; last year the average loss was £740. In 2017 there were more than 4,700 reports of loan fee scams made to Action Fraud. It has now overtaken investment fraud as the most common scam reported to the FCA. Scammers target the most financially vulnerable in society, people on lower incomes and with low credit ratings, ANGEL OF THE NORTH A new partnership has been formed to provide commercial finance to entrepreneurs who want to launch or grow businesses across the Yorkshire region. The Business Catalyst Club has agreed a deal with ABL Business to create Business Catalyst Finance. The partnership will complement the equity and venture capital activities of the Business Catalyst Club by providing access to a broad range of funding options such as commercial property finance, business loans and venture capital along with alternative finance opportunities like asset-based lending and peer-to-peer lending. businesscatalystclub.co.uk who have limited access to mainstream credit. New FCA research shows that 34 percent of those surveyed admitted they weren’t confident they knew how to check if a loan provider was legitimate. Additionally, 36 percent of those who took out a loan product in the last three years didn’t do any checks to ensure the legitimacy of their loan provider. Research shows that over a third of people (36 percent) usually just accept what financial firms tell them. Fraudsters take advantage of this attitude and have a range of genuine sounding reasons for asking for a fee – including claiming it’s a deposit, admin fee or insurance for those with low credit ratings. Other warning signs include: being asked to pay in an unusual way e.g. by iTunes vouchers or a money transfer service; being put under pressure to pay the fee quickly; and being asked to pay multiple fees. fca.org.uk Intrum takes out time for a chat INTRUM UK, the has become one of the first debt collection agencies to deploy a collections ‘chatbot’ – a consumer enquiry service powered by artificial intelligence. The chatbot enables customers to receive answers to their questions 24 hours a day, seven days a week. The technology is being piloted in Intrum’s UK and Norwegian businesses before it is deployed globally. The intelligent system was created by Norwegian Fintech firm Boost AI. The developers claim it can answer more than 730 different questions posed by customers as well as signposting debt advice, mental health support, self-service payment options and human customer support. In the first three months of use in Norway, the chatbot conducted 15,900 live chats and the company claimed it was able to answer 90 percent of the 47,500 questions received. All chatbot activities are monitored through Intrum’s dashboard, which will be used to adjust and further develop the technology to meet customer needs. In future, the chatbot will be able to answer customer-specific questions on accounts, such as current balance and next payment date as well as integrating seamlessly with human chat. The technology offers customers the ability to manage their accounts and seek help at any time. As well as extending service, Inturm says the development means customer support representatives can focus on complex cases such as those involving customers in vulnerable circumstances. Hannah Cook, Intrum Group Digitalisation Program Director, says the ambition is to be the leading player in the industry: “We want to be setting the standard for how new technology can be used to better serve our clients and customers. The introduction of this debt collection chatbot in the UK takes customer service to the next level and is an important step on this journey”. intrum.com >NEWS IN BRIEF 2019 AWARDS The date for the CICM British Credit Awards has been set for 7 February 2019 and will once again be held at the impressive Royal Lancaster, London. For details of the awards visit: cicmbritishcreditawards.com. Northern steel THE Northern Powerhouse Investment Fund (NPIF) has invested more than £50 million across the Northern Powerhouse region, supporting over 260 small and medium growing companies. The significant achievement was announced by Ken Cooper, Managing Director, Venture Solutions at the British Business Bank as he spoke to investee businesses, key stakeholders, partners and fund managers at NPIF’s oneyear anniversary event in Leeds. The £400 million Fund, which is supported by the European Regional Development Fund, HM Government, and the European Investment Bank, was launched by the British Business Bank as a key part of the government’s ‘Northern Powerhouse’ vision, which aims to create economic prosperity in the North of England. npif.co.uk An audience with... FOLLOWING the announcement that the Civil Court Users Association (CCUA) has secured Susan Acland-Hood CEO of Her Majesty’s Courts & Tribunal Service as its Keynote Speaker for this year’s Annual Conference in Birmingham on 16 October, Chair Amir Ali, met and briefed Prime Minister Theresa May about the work of the CCUA. “She seemed genuinely interested in what the CCUA stood for and our collective concerns about the Court Service in general,” Amir says. “And indeed the vital work that we do on behalf of our members.” ccua.org.uk CICM IN BRIEF This month’s briefing includes details of the Education Conference on 26 June, dates for Level 3 and Level 5 Classes, the CICM Virtual Summer School, how to become a CICM Mentor, and the opening of the booking window for June 2018 online exams. The Recognised Standard / www.cicm.com / June 2018 / PAGE 11
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Page 13 and 14: INTERVIEW CLASS ACT Sean Feast spea
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