A Comprehensive Guide to Appgs an Introduction to the CSA and DBSG Sara De Tute, President
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INSIDE Cancer • Food & drink • Health • Metal theft • Renewable energy Parliament’s Magazine APPGs • 2013 All-party groups A comprehensive guide to APPGs An introduction to the CSA and DBSG Sara de Tute, President he Credit Services Association (CSA) is the only has helped to promote better access to credit How is Debt collected? TUK wide association for businesses specialising information, thus reducing ‘mistrace’, where the in debt collection, tracing and related services. It wrong person is contacted about a debt. We are also LETTER also incorporates the Debt Buyers & Sellers Group lobbying for the retention of the edited electoral Letters are sent to the consumer, introducing the (DBSG), with members ranging from high street register and access to the full register, as it seems collection agency and prompting contact with the aim banks to credit reference agencies (CRAs) and debt nonsensical that such information can be used by of agreeing an affordable repayment arrangement. buyers and funders. creditors when lending money, but not to help the TELEPHONE Attempts are made by trained collectors consumer resolve their financial difficulties. to contact the consumer by phone with the aim of CSA and DBSG members represent more than 90% discussing their individual circumstances, taking of the UK debt collection market, and currently own We believe passionately in helping the honest income and expenditure details, and where possible and/or collect around £60 billion of consumer credit consumer, but we do want to limit the ability of resolving any disputes or queries and agreeing an receivables. The Association works with members those consumers who simply want to avoid paying affordable repayment arrangement. and other stakeholders to promote continuous debt which they can afford to repay. We believe that improvement in the credit industry, with fair anyone owing money to a creditor should be legally FIELD outcomes for all involved. obliged to inform them of a change of address. Where contact cannot be made by letter or phone, Nearly every other country in Europe has such a trained negotiators may call on consumers at their Around £20bn of debt is passed to CSA members provision, but in the UK many debtors simply deny home with the aim of collecting repayments in each year for collection, and we return almost their identity to avoid repayment. This is not in the person each week or month. £3bn to the UK economy every year. Our clients interests of the vast majority of honest consumers, include major financial institutions, government who pay the price for debt avoidance with higher LITIGATION departments and local authorities, utilities, mail interest rates, bank charges and cost of credit. When other collection methods have failed, some order and telecoms companies. organisations use the courts. This typically involves Financial Conduct Authority (FCA) County Court action. Once a judgement has Continuous improvement in our industry been awarded, there are a number of methods of enforcement including attachment of earnings, CSA and DBSG support the Governments proposal warrant of execution, or a charging order if the Working with our members, the CSA aims to under the Financial Services Bill to introduce a consumer is a home owner. promote and enforce the highest professional new Financial Conduct Authority which will have standards across the credit industry. We have a responsibility for regulation throughout the credit TRACE AND COLLECT robust complaints handling process, and member life cycle, from sale of the product, through to Many consumers fail to advise the creditor when companies face serious sanctions for breaches of collection of any arrears. they move (some accidentally, some intentionally). the CSA Code of Practice. Once it is established that the consumer has moved, The same customer with the same loan should have debts are often passed to a trace and collect agency. Our Collector Accreditation Initiative (CAI) helps the same regulatory code throughout the consumer Using various data sources including CRA data and enhance best practice by online testing of the credit lifecycle. This model is consistent with the the Electoral Register for verification, new addresses knowledge of over 5,000 collection staff on an design principles of the evolving financial services are found and attempts made to contact and collect. annual basis. The DBSG recently launched the regulation. CSA and DBSG members also undertake Continuous Improvement Programme (CIP) in regulated activities in other European markets and partnership with PricewaterhouseCoopers. CIP need an appropriate Competent Authority under THE FACTS verifies members’ compliance with an extensive the Consumer Credit Directive. The FCA would be set of industry standards and legislation. Following an ideal Competent Authority, readily recognisable • The 400 CSA and DBSG members comprise more successful rollout among debt buyers, CIP is now to European regulators who typically adopt a single than 90% of the debt purchasing and collections also available to CSA members. regulatory regime. market in the UK • CSA and DBSG members own or collect more In addition, the CSA runs its own QCF Accredited Level EU Data Protection legislation than £59 billion of consumer debt - that’s the 3 Diploma course and provides a holistic approach equivalent of £1000 for every man, woman and to training on all levels, including bespoke solutions. Further afield, the CSA has been lobbying on the child in the UK. Of that total, £31bn is being The CSA Diploma is created and delivered by industry proposed EU Data Protection legislative proposals, collected by DCAs, £27bn is owned by DBSG experts to ensure relevance to our sector. some of which fly directly in the face of the FSA’s members, and £1bn is commercial debt principles of ‘Treating Customers Fairly (TCF) and • Across the 32m debts on our books, Regular meetings with regulators, government ironically could create more ‘mistracing’ ultimately £1,476,191,614 was returned to the UK departments, consumer groups and other trade causing distress and damaging the interests of the economy in the second half of 2011 – that’s bodies have ensured that CSA and DBSG have UK credit sector and making credit even harder to almost £3bn per annum. A growing proportion excellent working relationships with all those obtain for millions of UK consumers. of this total was returned to government involved in the credit industry. departments, state-owned banks and public UK DEBT STATISTICS authorities Promoting Fairness for all • Outstanding personal debt stood at £1.457 • CSA and DBSG members employ around 15,000 trillion at the end of February 2012 people in the UK The CSA and DBSG work closely to help honest • £56,058 was the average household debt in • A total of 1,747 complaints were upheld by CSA consumers find a solution to their debt problems. We February members in Q4 2011 – that’s only one upheld provide regular guidance and advice to members • £6.23m of loans are written-off daily by UK Banks complaint for every 20,000 consumers we deal on dealing with vulnerable debtors, including those and Building Societies with, and we are regarded by the Financial with mental health issues. We also provide useful • Our members’ aim is to contact the right person, Ombudsman Service as a ‘small business user’ consumer advice on our website. in the right way at the right time, every time. It isin due to the very low number of complaints related everyone’s interests to ensure that the person to debt collection. CSA and DBSG have made an ongoing commitment with the debt is the person contacted. No one to improving data accuracy in the credit cycle. in the industry wants other consumers to be Our work with lenders, CRAs and our membership bothered with unnecessary calls or letters csa-uk.com APPG 2013 www.politicshome.com [email protected] POLITICAL Editor COMMERCIAL Sam Macrory DEVELOPMENT ll party secretariat, they have in the past DODS Director parliamentary commissioned reports; helped inquiries, PARLIAMentarY Rob Ellis editor IN CHIEF DODS CEO groups are and have at times supported public bill Paul Waugh Keith Sadler aplenty. Their inquires. PARLIAMentarY MANAGING Director editor, POLITICS Philip Eisenhart strength is Arguably APPGs are one of the least HOME The House Magazine Athat unless there is broad known and underestimated forums for Tony Grew 21 Dartmouth Street, COMMISSIONING AND London, SW1H 9BP cross-party representation, they can’t be shaping political debate. That’s why this SPECIAL PROJECTS EditoriaL established. They provide a platform for in- guide is so important. I hope readers will Editor editorial@housemag. depth non-partisan political debate. find it useful to help them to navigate their Sally Dawson co.uk EditoriaL ASSIStant Tel 020 7593 5665 Some of them focus on particular way round the groups and ascertain which Jessica Bowie AdvertiSING countries or subjects. Others take a is of most relevance to their concerns. EditoriaL INTERN housemagazinesales2 Joseph Briggs @dods.co.uk particular issue or concern as their theme. 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