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Archive for the ‘Debt News’ Category
Friday, June 18th, 2010
The Office of Fair Trading (OFT) has warned UK lenders that taking court action against consumers outside their home jurisdictions is unacceptable.
The move follows an OFT investigation into Creation Consumer Finance, which provides point of sale finance to major retailers.
Solicitors acting on behalf of the company had been issuing proceedings against Scottish debtors in English courts, and the OFT found the practice to be unfair stating: “The unfamiliar law and procedure involved in a court claim in a different jurisdiction, and any associated travel costs, may deter consumers from defending such action.”
The requirements imposed on Creation Consumer Finance Ltd mean that the company must:
Ensure that businesses and/or firms acting as its agent or sub-contractor in the course of any consumer credit licensable business comply with the OFT’s Debt Collection Guidance.
Not issue, and ensure that third parties acting on its behalf do not issue, proceedings against a consumer in a jurisdiction other than that in which the consumer is domiciled.
Any consumer credit licence holder taking action or threatening to take action against consumers in a court outside their home jurisdiction is therefore in breach of the OFT’s Debt Collection Guidance.
The watchdog’s director for consumer credit, Ray Watson, sums up: “Issuing proceedings in a different jurisdiction is clearly unacceptable and lenders should take heed that the OFT will act to prevent this practice.”
Tags: Creation Consumer Finance, office of fair trading, OFT
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Wednesday, June 16th, 2010
The latest “Global Collections Review” survey undertaken by leading credit management specialist Atradius Collections, assessed the current commercial debt collection trends and practices with more than 1,700 companies in nine European countries. This second study, builds on the findings from the initial research released in January 2010, focusing on the use of debt collections services and the number of days that international and domestic debts are overdue, as well as the nature of the criteria used to select an external agency and factors that may discourage companies from outsourcing their outstanding debts.
One of the key findings from the latest Global Collections Review shows that external debt collections agencies are used to collect international debts by more than half (53%) of companies using outsourced debt collection services to help improve cash flow and increase liquidity.
Of all the companies surveyed, more than half of those in the Netherlands and Sweden are using external debt collections agencies, which is well in excess of the European average of around one-third. Interestingly, these two countries also returned figures of less than half of the European average on domestic receivables more than 90 days overdue, with similar results for international debts.
The effectiveness of external debt collections agencies and their abilities to deliver results topped the list of why European businesses choose to take on such an external agency. When asked to rank a series of eight criteria, ‘success rate’ was regarded as most important with ‘price’ rated as only of secondary importance, followed by ‘reputation’, ‘the ability to maintain a positive relationship’ and ‘local knowledge’. In addition to these general trends, some interesting preferences can be spotted in some countries. Businesses in Italy, ranked ‘reputation’ as more important than ‘success rate’, while businesses in Germany rated an agency’s ‘ability to maintain a positive relationship with the debtor’ the highest of any country surveyed.
Raymond van der Loos, Managing Director of Atradius Collections explained: “For many businesses the recession and the need for liquidity were key factors in deciding to use an external debt collections agency, which was reflected in the findings from our original study six months ago. Our new Review provides some clear evidence that this development is continuing and as a result of the successes that have been delivered by external debt collections agencies, it is now the dominant method in some countries.”
He added: “This new study also identifies some interesting attitudinal, cultural and geographic differences, which help us ensure we deliver a high quality local service in a global market. Also, the question of maintaining positive relationships with debtors, raised by businesses in Germany in particular, has never been an issue for us as in our own regular customer satisfaction surveys, more than 90% of customers say that we maintain positive relationships.”
Among the five reasons for not outsourcing debt collections, ‘lack of trust in the success of the outsourcing party’ came low on the list at fourth with ‘cost’ ranked only one place higher. This indicates that the debt collections industry is well regarded even by businesses that don’t use outsourced debt collections and that ‘cost’ is a relatively minor factor, whether or not a company chooses to use an external debt collections agency.
The “Global Collections Review” survey was conducted among 1758 businesses across 9 countries: Belgium, Denmark, France, Germany, Great Britain, Italy, the Netherlands, Spain and Sweden
Tags: debt collection agencies, Global Collections Review, international debt collection
Posted in Debt News, Financial News, International Debt News | No Comments »
Monday, June 14th, 2010
Federal Management is a constantly evolving debt collection agency that will manage every element of your financial needs. While the debt collection industry tended to be traditional and set in it’s ways when it came to recovering owed monies, times have now changed and debt collection agencies have had to change with them. Federal Management is more than just your traditional debt collection agency.
The key to federal Management’s superb recovery levels and consistently excellent level of custoemr service is the people that mae up the company. Federal Management is made up of a wide range of industrial, commercial and business savvy people with a vast level of experience in a variety of fields. Obviously, when you are looking for a debt collection agency it is crucial that the one you choose is ahead of the game and is ensuring that your debt is being recovered in the most efficient and cost-effective way.
Federal Management is the solution to all of your collection needs, utilising the latest technologies combined with cutting-edge debt recovery methods. The in-house legal team works alongside tracing, bailiff and collection departments to ensure that at every stage of the recovery of your debt, Federal Management is providing you with the highest level of service.
Federal Management is regulated by the Credit Services Association (CSA) and this means that all the work Federal Management does is ethical, legal and professional, unlike some other, unscrupulous firms who will tarnish the reputation of a company by whatever means to try and collect a debt.
Federal Management takes the stress away from you, allowing you to free up your time and get on with growing your business, safe in the knowledge that your owed monies are being recovered by the experts.
Tags: debt collection agency, debt recovery, federal management
Posted in Debt News, Financial News, International Debt News | No Comments »
Wednesday, May 19th, 2010
South African landlords who collect rent arrears have now been placed under the scope of the Debt Collectors Act, according to property management group Trafalgar.
Managing Director of Trafalgar, Andrews Schaefar, said “Landlords battling with late-paying tenants and bodies corporate struggling to retrieve levies can now welcome two recent landmark decisions by the Council for Debt Collectors that clearly rule property managers collecting arrears levies and rentals fall within the scope of the Debt Collectors Act.”
Under the new rulings, all estate agents and property managers who collect rental arrears and levies must be registered with the Council for Debt Collector. This will help regulate any unscrupulous behaviour that may have entered the South African debt collection industry.
“The move has highlighted compliance with the Council for Debt Collectors and associated legislation as being necessary for compliance and transparency,” continued Richard Schaefar.
As a direct result, this move should encourage debtors to improve their individual situation in order to avoid these enforceable penalties.
Schaefer said the Council for Debt Collectors was established to bring clarity to a previously unregulated industry following numerous public complaints laid with the department of justice against debt collectors.
“The Debt Collectors Act provides control over debt collectors and legalises the South African collection system by monitoring their conduct and professionalism and thus promoting a culture of good governance.”
Schaefer said the act worked both ways.
“Tenants who believe they are receiving unfair bias can lay a complaint with the Council and both sides will be heard before a judgment is passed.”
Mr Schaefar then added that a recent decision by the Durban High Court to exclude levies from the National Credit Act debt counselling process was also good news for estate agents and property managers.
“That decision means companies such as Trafalgar do not have to refer to debt counsellors when seeking levies due from owners – and correspondingly that errant owners cannot hide behind debt counselling as an excuse for not paying their bodies corporate levies.”
Tags: council for debt collectors, debt collectors, south africa
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Tuesday, April 20th, 2010
CREDIT card customers of Scottish bank Halifax, who are unable to pay off their card balance or switch to another provider before the bank closes in June, have been given a new option to clear their accounts.
Customers will be able to pay off the balance at a cost of 10pc, which is below the existing 13.4pc interest rate on the Halifax credit cards.
There will be an option to pay off as little as 3pc of the outstanding balance each month, similar to a minimum payment amount on a credit card.
A spokesman for the bank, which had 50,000 credit card customers when it announced it was closing earlier this year, said those who did not clear their card balance by June 18 would automatically be given the new repayment arrangement.
The bank insisted that the new deal was not a personal loan, but instead a variation on their existing credit card deal with the bank.
This means there will be no need for those with credit card balances to apply to Halifax for a loan to clear the balances.
Halifax/Bank of Scotland (Ireland) is still encouraging customers to pay off their balances or switch to another credit card provider by June 18 when it closes its 44 Halifax branches. From that date, the credit cards will no longer work.
Repayment
But customers in arrears with their credit card payments may not be able to avail of the new repayment offer.
A spokesman for the Scottish bank said that anyone who was one month in arrears on their card repayments would be offered the new deal. Those who were up to three months in arrears needed to contact the bank to discuss the situation.
But those who were four months or more in arrears were unlikely to be offered the repayment arrangements and would probably end up with their card debt being passed on to the debt collection division of the bank, the spokesman said.
The bank said it was pleased with the number of card customers who had switched providers ahead of the closure, but would not say how many had switched.
It added that customers with payment protection insurance on their credit card could continue to pay this until their balance was cleared.
Tags: credit card debt, Halifax
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Friday, April 9th, 2010
The final session of one of the most scandalised parliaments in history ended with the passing of bills designed to protect third world countries from unscrupulous debt collection practices, prevent under-18s using sunbeds, and improve personal care at home.
About 20 bills were passed in a marathon 48-hour wash-up session ahead of the election. Labour claimed victories in the crackdown on “vulture funds” in the developing world, the outlawing of the previously legal high mephedrone, and sunbeds for under-18s.
But they were forced to make dramatic concessions to get other bills through. The constitutional reform and governance bill was radically trimmed, losing key reforms Labour has been promising since 1997, and the education bill lost reforms to the schools system.
Other bills fell foul of the wash-up, with a public outcry over the version of the digital economy bill which finally received royal assent that allows internet service providers to cut access to illegal file sharers. One operator tonight said it would not comply with the measures.
Unusually high numbers of MPs were in the Commons to witness the final prorogation of parliament – the formal ceremony concluding each session. Parliament will be officially dissolved on Monday.
The Liberal Democrats criticised the drastic slimming down of the constitutional reform and government bill to get it through parliament. It was stripped of plans for a referendum on a more proportional electoral system using an alternative vote system. A proposal to phase out the last hereditary peers was also postponed in order for the bill to receive royal assent in time.
The Liberal Democrat justice spokesman David Howarth rounded on ministers and their Tory shadows accusing them of “collusion” in the “wash-up” period and producing a “disaster” of a reform bill.
Tags: debt collection, dissolution, Labour, parliament
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Wednesday, April 7th, 2010
LexisNexis(R) Risk Solutions today announced the availability of LexisNexis(R) Banko(R) Events Monitoring, a new feature available with the LexisNexis(R) Receivables Management Solutions suite that automates the process of monitoring bankruptcy events and helps collections organizations improve efficiency, reduce cost and identify new sources of revenue. In preliminary customer trials, the solution is proven to save collections agencies and first-party debt collectors 50 percent or more on costs associated with manually monitoring bankruptcy events.
“In our current economic environment, bankruptcies are increasing like never before, and collections professionals need access to the most current, comprehensive data possible in order to collect on accounts and reduce loss exposure,” said Robert Fite, vice president, LexisNexis Receivables Management Solutions. “LexisNexis Banko Events Monitoring allows collections professionals to focus on the business of making decisions, increasing efficiency and profitability.”
The number of people and businesses filing for bankruptcy is increasing at a staggering pace — 1.4 million petitions were submitted in 2009, a 32 percent increase from 2008. With the number of bankruptcy cases increasing dramatically, it is vital for collections professionals to monitor bankruptcy events such as attempts to have a court forgive certain debts, to have an accurate picture of their debt portfolio. Every time they want to check status on a debtor, collections professionals must conduct manual, labor-intensive searches using PACER, the federal court case electronic access system.
Banko Events Monitoring helps debt collectors overcome this problem by automating the monitoring process of bankruptcy events. The solution works by automatically monitoring every daily court docket entry for every bankruptcy case, and then provides collections organizations with relevant information on the debtors and events they need to track. As a result, collections organizations are empowered with information they need to make better and faster decisions about debt recovery. In addition, users save costs associated with purchasing individual PACER reports, improve employee productivity, minimize the need for manual investigations, and reduce their loss exposure.
In a beta trial of Banko Events Monitoring conducted with nine clients across several industries, including a collections agency, mortgage lender and automotive lender, the solution delivered average savings of 50 percent when compared to the cost of manually searching for bankruptcy events. To cite one example, an auto loan company had historically only been able to monitor approximately 7,500 of their 43,500 active bankrupt accounts. Banko Events Monitoring enabled the company to monitor all 43,500 of their active accounts — and for less than half the cost of manually searching 17 percent of the prior caseload.
LexisNexis Banko Events Monitoring is a key component of the LexisNexis Receivables Management solutions suite that helps collections businesses minimize unnecessary operational expenses and focus their efforts on the most collectible accounts. Banko Events Monitoring is an added functionality to Banko(R), a fully customizable solution that allows businesses to search comprehensive nationwide bankruptcy databases to quickly identify new filings and recently deceased individuals.
About LexisNexis
LexisNexis(R) (www.lexisnexis.com) is a leading global provider of information and services solutions, including its flagship Web-based Lexis(R) and Nexis(R) research services, to a wide range of professionals in the legal, risk management, corporate, government, law enforcement, accounting and academic markets. A member of Reed Elsevier [NYSE:ENL; NYSE:RUK] (www.reedelsevier.com), LexisNexis serves customers in 100 countries with 15,000 employees worldwide.
About LexisNexis Risk Solutions
LexisNexis(R) Risk Solutions is the leader in providing essential information that helps advance industry and society. Building on the legacy of proven LexisNexis(R) services from the past 30 years, our cutting-edge technology, unique data and advanced scoring analytics provide total solutions that address evolving client needs in the risk sector while upholding high standards of security and privacy. LexisNexis Risk Solutions serves commercial organizations and government agencies and is comprised of several affiliated corporations, each offering premier customer-focused solutions. For more information, visit risk.lexisnexis.com.
SOURCE: LexisNexis Risk Solutions
Tags: banruptcy, debt collection solutions, lexis nexis
Posted in Debt News, Financial News, International Debt News | No Comments »
Wednesday, March 31st, 2010
LEAD GENERATOR
Description
We are an ambitious and fast growing National Credit Management company. We currently have a requirement for a dynamic and assertive sales individual for the purpose of lead generation.
Key duties will include:
- Direct contact with new & existing clients.
- Lead generation via tele-sales campaigns.
- Generation of appointments for field sales representatives.
- Dealing with inbound and outbound telephone enquiries.
- Professional with excellent telephone manner.
- Superb communication skills and have a great attention to detail.
- Work in accordance with all relevant legislation.
Candidates must be well organised and commercially astute. Contribute to the development of the organization by working in accordance with company policies and procedures. Candidates will be required to identify and attend relevant training as required, undergo regular supervision and annual appraisal.
This vacancy is due to the substantial growth of our organisation. To be successful in your application you must be able to demonstrate a proven track record in sales, lead generation and client management. This is a wonderful opportunity for the right candidate to join an already established and successful company.
Knowledge of ACT software or the Debt Collection industry a distinct advantage but not essential.
This position has a fantastic basic salary and commission structure.
How to apply
You can apply for this job by sending a CV/written application to Phil Glaiser at Federal Management Ltd, Federal House, 1C Maple Court Maple View, Skelmesdale, Lancashire, WN8 9TG or to pg@federalmanagement.co.uk.
Tags: Debt Collection Jobs, federal management, Sales, Telesales
Posted in Debt News, Financial News, International Debt News | No Comments »
Wednesday, March 24th, 2010
For the second time in less than a year, the New Jersey Assembly will consider legislation concerning the debt collection bill.
It is being argued that revising the Fair Debt Collections Act would help eliminate harassing, intimidating and abusive debt collection practices and it would also give those being chased a way to dispute and validate debt information to ensure its accuracy.
The legislation was scheduled to be voted upon on Monday but no longer appeared on the Assembly’s legislative agenda late Sunday night, would enhance additional federal protections and limit collectors’ ability to contact a debtor at work — except under certain circumstances — or at “any time and place” known to be inconvenient.
Assemblyman John Burzichelli, D-Paulsboro, said “We’re doing nothing here to relieve a consumer of a rightful debt, but this is a fairness bill that’s needed more than ever to ensure consumers aren’t harassed by unscrupulous debt collectors.” Mr Burzichelli is sponsoring the move alongside fellow Assemblymen Matthew W. Milam, D-Cape May Court House, Wayne P. DeAngelo, D-Hamilton and Paul Moriarty, D-Turnersville.
Mr Moriarty said “Just because someone is in debt does not mean they forfeit their rights to be treated fairly. Debt collectors may have a responsibility to get consumers to make good on what they owe, but they also have an obligation to treat consumers with respect and within the law.”
If approved the amended bill would prohibit, with limited exceptions, a debt collector from communicating with a debtor:
- earlier than 8 a.m. and later than 9 p.m.
- at the debtor’s place of employment, although the collector may send a single letter or make one phone call per month to a debtor’s place of employment if the debt collector hasn’t been able to contact the debtor at home.
- if the debt collector knows the debtor is represented by an attorney and can readily ascertain that attorney’s name and address.
If found to be abusing these rules, the offenders could be fined upto $10,000 for a first offence and then up to $20,000 for each subsequent offence. Violations could also result in cease and desist orders issued by the state Attorney General’s office and the awarding of treble damages, attorneys’ fees and legal costs to the injured party.
When originally looked at in July of 2009 Assembly members overwhelmingly approved the measure but it died when the state Senate failed to act on it before the last legislative session ended in January. If it’s passed again, the debt collection bill would go back to the senate for its consideration.
Tags: assembly, debt collection, fair debt collections act, new jersey
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Tuesday, March 23rd, 2010
Credit card customers of Halifax have been warned that they could end up being chased by debt collectors.
With the Scottish bank due to end its retail operations from June 18th, it has decided that it wants its 50,000 credit card customers to close their credit card accounts by then, either by transferring to another card provider or by clearing the balance, or face the prospect of being chased by debt collectors.
Halifax has said that it would offer those who were unable to clear their balance, or find a suitable transfer to another provider, the option of converting their card balance into a personal loan but Emmet Pullan of Debt Plan Ireland clams he has been told by the bank that this is not the case and personal loans will not be offered, instead the debt will be sold on to a debt collection agency.
Mr Pullan said “We would feel that customers should be aware of this situation as this proposed action may further impact their credit rating. Some debt collection agencies will have vigorous recovery techniques so customers should prepare to engage them with a repayment plan should the account transfer.”
A spokesman for Halifax/Bank of Scotland said no decision had been made yet on what will happen to those card customers who are in arrears when branches start to close in June. He also confirmed that anyone who fails to make payments on their card for six months in a row is being classed as “in arrears” and they may well find that their debt has been sold on to a debt collection agency if they do not contact the bank.
The Halifax spokesman stressed that customers should try to clear their credit balances by June 18 by switching or paying off the balance.
Tags: bank, credit card debt, debt collectors, Halifax
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