Archive for the ‘Financial News’ Category

Debt Collection Helping to Slow Unemployment Rates

Wednesday, March 14th, 2012

As UK unemployment figures continue to increase, Federal Management are helping businesses to buck the trend by improving cash flow through debt collection.

UK unemployment rose by 28,000 to 2.67 million during the three months to January, with the unemployment rate at 8.4%, according to figures from the Office for National Statistics (ONS) with the number of people claiming Jobseeker’s Allowance increasing by 7,200 to 1.61 million in February.

The rise was the lowest increase of unemployment for almost a year.

Employment Minister Chris Grayling said:

“This is a more encouraging set of figures, with signs that the labour market is stabilising.”

One reason for the slow down in the rate of unemployment has been an improvement in cashflow that many companies are experiencing by utilising the services of Federal Management, the UK’s leading commercial debt collection agency. Federal Management vigorously and pro-actively pursue unpaid invoices and overdue accounts which then frees up the time of the companies to focus on sales and growth.

A spokesman for Federal Management said:

“As the slow recovery from the economic downturn continues, Federal Management are at the forefront of providing an essential business to business solution that allows companies to improve their cashflow and increase the potential for commercial growth. The time and money that thousands of businesses save on a daily basis allows them to continue to keep staffing levels high and, where possible, increase them to meet growing demand.”

Any business who is experiencing difficulty with a bad debt ledger, unpaid invoices or overdue accounts can speak to Federal Management to discuss how they are able to benefit from commercial debt collection by calling their New Business team directly on 0844 875 4022.

Tags: debt collection, federal management, improve cashflow, unemployment
Posted in Debt News, Financial News | 1 Comment »

UK Employment Giving Reason for Optimism

Tuesday, March 13th, 2012

A survey of more than 2000 firms by one of the UK’s largest recruitment agencies has given UK employment rates reason for optimism.

The research from Manpower has revealed that more firms are encouraged by signs of economic growth and are now feeling like they are more likely to take people on rather than lay them off.

The announcement comes ahead of official statistics which are expected to show a further increases in the rate of unemployment. Last month unemployment figures stood at 2.67 million. The Bank of England predicting that the UK is likely to ”zig-zag” in and out of growth.

However, Manpower UK managing director Mark Cahill said:

“It does feel like we’re turning a corner when it comes to the jobs market.”

“Businesses that were battening down the hatches in the last quarter appear to be considering taking on staff. We’ve noticed much more flexibility among employers, particularly in the market for permanent hiring.”

A similar survey was performed three months ago with firms feeling the state of the economy would force them to lay off staff but the latest survey found that many more businesses are a lot more optimistic, particularly in the East Midlands and North-West England. . The outlook in London was further boosted by the positivity surrounding the upcoming Olympic Games. However, there was a negative outlook in the rest of south-east and eastern England, and in Wales.

Last month, figures for the three months to December showed unemployment increased by 48,000, the smallest rise in almost a year.

And the Bank of England’s quarterly inflation report predicted the economy would grow by about 1% in the coming months.

Its governor Sir Mervyn King said he expected the economy to avoid a double-dip recession and that some businesses had indicated things had picked up at the start of the year. However, he warned it might not last.

Tags: economic recovery, employment rates, recrutiment, UK employment levels
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UK Personal Debt Levels Increase

Monday, March 12th, 2012

New figures reveal that the total amount of personal debt in the UK now stands at £1.456 Trillion.

The figures are an increase on the corresponding period twelve months ago when the personal debt level was £1.452 trillion.

Secured mortgage lending makes up the vast majority of the outstanding debt, a figures of £1.248 trillion which is slight increase from the £1,240 trillion that was owed last year. With 11 million households in the UK, the average outstanding mortgage debt is approximately £111,260.

The average amount of debt owed for every adult in the UK (including mortgages) currently stands at £29,634 which is around 122% of average earnings. Current household debt levels stand at £55,988 which again is an increase on previous levels.

The massive amount of debt owed means large amounts of interest to be paid and over the twelve month period reviewed £62 billion was paid in interest on personal debts, or £173 million pound a day.

£2,432 is the average interest repayment on personal debt for every UK household.

Tags: mortgage debt, Personal Debt, uk debt levels, uk personal debt
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US Borrowing on the Rise

Friday, March 9th, 2012

As the United States continues on it’s recovery from recession it hit an event of note yesterday as new data showed the first quarterly rise in consumer borrowing since 2008.

The Federal Reserve released data which showed that there was a rise in consumer debt for the final quarter of 2011 at an annualised rate of 0.3 per cent. This was the first time since the second quarter of 2008 that there had been such a rise. Business lending also saw positive movement with an increase at an annualised rate of 4.6%, again the highest movement since 2008.

The growth of credit shows the progress consumers have made in reducing debts left behind by the recession, as well as healing in the banking system. Stronger credit growth should support consumption and make the economic recovery more resilient.

The positive news is a strong indication of the progress made by consumers on the debts that they had accrued before and during the recession, and the efforts they had gone through to reduce them. It is also an indication of US banks bringing themselves back into order. Further growth should aid in further improving the debt recovery and aiding in the recovery of the US economy.

Tags: Consumer Borrowing, Consumer Debt, US Economy, US Lending
Posted in Debt News, Financial News, International Debt News | No Comments »

Debt Collection Aiding Freeze in Council Tax

Thursday, March 8th, 2012

An improvement in levels of debt collection has contributed to Monmouthsire County Council announcing a freeze in council tax for 2012/13.

The council is one of only three local authorities in Wales which have so far committed to a standstill.

The final meeting at the Cwmbran County Hall saw the council approve an an additional £750,000 to be invested in school literacy and numeracy programmes over the next three years plus an additional £300,000 to support vulnerable children and adults.

Other key decisions included a standstill in the price of school and community meals, a clear pledge to deliver on the £80 million programme for 21st Century Schools, a continued commitment to invest in and improve the road network and a continuation in waste recycling services that have made Monmouthshire the top performer in Wales.

Despite significant funding cuts from the Welsh Government, MCC continues to effectively manage its finances and expects to underspend its budget in the current year.

Changes to working practices, streamlining internal processes, improved debt collection and cost reduction programmes have allowed the council to recommend increases to its spending on core priorities without increasing council tax.

Cabinet member for finance, Councillor Phil Murphy, said:

“The budget details an increase in spending on schools and the vulnerable, and no increases in the price of school meals and the community meals service while maintaining the current council tax rates.”

“In summation, we are able to freeze council tax rates and invest more into our main priority services.”

Tags: council tax, debt collection, monmouthshire country council
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Card Fraud Falls to Lowest Level in 11 Years

Wednesday, March 7th, 2012

The amount of money lost due to fraud on credit and debit cards fell last year by 7% to £341m – its lowest level for 11 years.

Credit and debit card fraud has seen a sharp decrease to fall to its lowest level in 11 years, according to the UK Cards Association.

The total amount of money that was lost in credit and debit card fraud in 2011 dropped by 7% to £341 million. The primary factor in the drop was put down to a 41% decrease in fraudsters impersonating people as a means to obtain or fraudulently use credit cards.

Fraudulent card use as a result of card cloning also saw a fall of 24%.

The UK Cards Association said it was the third year in a row that card fraud had fallen, with a drop of 44% since losses peaked in 2008 and it brings credit and debit card fraud to its lowest level since 2000 when £317m was lost through fraud.

An increase in the use of anti-fraud measures was one of the main reasons given for the improvements with online card verification software, such as Verified by Visa and MasterCard SecureCode, and the increased use of chip-and-pin technology abroad being among the key components.

Melanie Johnson, chair of the UK Cards Association, said:

“This is… clear proof that our endeavours to fight fraud are packing a punch.”

“Customers have also played their part in driving down losses by taking heed of advice about looking after their personal and financial details.”

Tags: credit card fraud, debit card fraud, fraud levels, UK cards association
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HMRC Debt Recovery & Northern Ireland Businesses

Monday, March 5th, 2012

Northern Ireland Finance Minister Sammy Wilson has met with HM Revenue & Customs (HMRC) to discuss matters of outstanding tax and debt recovery

Mr Wilson has recently met with the Director of Debt Management and Banking in HMRC after recent correspondence between the Minister and office of the Chancellor of the Exchequer.

The Minister has received numerous representations from local businesses, insolvency practitioners and from the legal profession regarding the approach taken by HMRC in seeking to recover outstanding tax liabilities and wanted to clarify the approach taken by HMRC in Northern Ireland.

Sammy Wilson said:

“The meeting with the Director of Debt Management from HMRC was very useful and provided me with the opportunity to express my concern about issues that representatives from the businesses community, insolvency practitioners and the legal profession have raised with me in relation to the recovery of outstanding tax liabilities.

“With the harsh economic situation, the hard stance of the banking sector and so many businesses in turmoil it is important that, I as Finance Minister, explore what steps might be taken to alleviate struggling businesses at this time.”

The issues discussed during the meeting included HMRC’s policy and procedures in relation to debt recovery and its attitude to Northern Ireland as a UK region, the Time to Pay arrangement and developing a closer liaison between officials.

The Minister continued:

“Agreement was reached that there would be a greater channel of communication between my officials and HMRC and that work will continue to assist, where appropriate, the possibility of early warning signs and changes in policy that may impact on businesses within Northern Ireland and that my Department can consider and then take forward.”

“HMRC stated that they remain committed to supporting viable businesses facing temporary financial difficulty. They emphasised that the important thing is for businesses to contact them before payment is due to discuss individual situations so that they can help.”

“With the draft Programme for Government setting out the Executive’s commitment in rebuilding and re-balancing the Northern Ireland economy, it is crucial that we still continue to pursue Northern Ireland’s interests on UK policy which impacts on our local economy.”

Tags: debt recovery, HMRC, Northern Ireland, outstanding tax
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HMRC Debt Recovery Tackling Tax Evasion

Thursday, March 1st, 2012

Her Majesty’s Revenue & Customs (HMRC) has significantly improved it’s level of debt recovery and the way it tackles tax evasion, delivering £4.32bn of extra tax yield between 2006 and 2011, a report from the National Audit Office has said.

At the same time, it has cut staff numbers and introduced a range of improvements in its compliance work – but it could still do more.

The NAO said the HMRC had introduced information technology (IT) to identify evasion more effectively but it wasn’t yet exploiting the full potential of the new systems. HMRC had also been forced to defer and reduce the scope of projects to keep within budget limits, so the benefits were not as great as they could have been.

The ‘Compliance and Enforcement Programme’ cost £387m to 2011/12 and was made up of over 40 projects. It aimed to increase compliance yield, ie the measure of extra tax coming from compliance work, by £4.56bn between 2006 and 2011. It managed £4.32bn and forecast that it would generate another £8.87bn between now and 2014/15. However, the NAO said the HMRC won’t meet all of its targets because some of its forecasts were over-optimistic.

NAO head Amyas Morse said:

“This major programme has helped HMRC to increase tax yield substantially and has introduced ways of working which will strengthen HMRC’s compliance work in future. The Department could, though, achieve better value for money from its investment in compliance work by improved understanding of the impact of individual projects and ensuring that its staff have the capacity to exploit new systems to the full.”

Tags: debt recovery, HMRC, tax evasion, tax yield
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CFPB to Supervise US Debt Collectors

Wednesday, February 22nd, 2012

The Consumer Financial Protection Bureau, or CFPB, has announced a proposed rule to include debt collectors and consumer reporting agencies under its nonbank supervision program. According to the CFPB, this would mark the first time these important and far-reaching consumer financial market participants are subject to federal supervision.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, authorizes the CFPB to supervise non-banks in the specific markets of residential mortgage, payday lending, and private education lending. In addition, for other nonbank markets for consumer financial products or services, the CFPB has the authority to supervise “larger participants.” As directed by Dodd-Frank, the Bureau must define such “larger participants” by rule, and an initial such rule must be issued by July 21, 2012. Last summer, the CFPB sought public comment about possible markets to include in the initial rule and available data sources the Bureau could use to define larger participants in - markets.

Under the proposed rule, debt collectors with more than $10 million in annual receipts from debt collection activities would be subject to supervision. Based on available data, the CFPB estimates that the proposed rule would cover approximately 175 debt collection firms — or 4 percent of debt collection firms — and that these firms account for 63 percent of annual receipts from the debt collection market.

Under the proposed rule, consumer debt collection or reporting agencies with more than $7 million in annual receipts from consumer reporting activities would be subject to supervision. This would include approximately 7 percent of consumer reporting agencies based on available data. The proposed threshold would allow the CFPB to cover about 30 consumer reporting agencies. The CFPB estimates that these 30 companies account for about 94 percent of the annual receipts from consumer reporting.

This is the CFPB’s first in a series of rulemakings to define larger participants. The CFPB chose annual receipts as the criterion for both debt collection and consumer reporting because it approximates market participation in these two markets. As the CFPB adds new markets, it will choose the best criteria and the appropriate thresholds for each market.

Tags: CFPB, consumer reporting agencies, debt collectors, United States, USA
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FSA Managing Director Margaret Cole to Leave Post

Monday, February 20th, 2012

The Financial Services Authority have announced that managing director and Board member, Margaret Cole, will leave the organisation later this year, after nearly seven years at the UK regulator.

Margaret Cole, said:

“I joined the FSA to help in the fight against wrongdoing within the financial services industry and I believe a lot has been achieved in my time here.”

“We have shown the FSA is not afraid to take on difficult cases and will not shy away from pursuing criminal prosecutions, however difficult to prove. It’s painstaking work and the legal process takes a long time but there are people sitting in prison now because of our commitment. And the next 12 months will see more trials and more convictions as the pipeline of our cases comes to fruition in the courts.”

“It has been a challenging but rewarding few years and I believe, with the help of a team of quality people, I have created a successful enforcement platform to take into the UK’s new regulatory authorities. The time has come for me to seek a fresh challenge, knowing that I leave the continuation of a winning strategy in safe hands.”

Hector Sants, FSA chief executive, said:

“Margaret has been pivotal in transforming the FSA’s approach to enforcement and she leaves a substantial legacy, widely respected in legal, regulatory and international circles. She has been a strong leader and advocate of the importance of delivering a credible deterrent to those that attempt to commit wrongdoing, as well as being an invaluable member of my executive team.”

“Her expertise across a broad range of management disciplines and the work she has done in setting up the conduct business unit has put us in good shape to develop the future conduct regulator.”

“I would like to express my personal thanks, and those of the organisation, for all that Margaret has achieved and I wish her every success in whatever future challenge she chooses next.”

Adair Turner, FSA chairman, said:

“On behalf of the FSA Board, I would like to extend my appreciation to Margaret for her outstanding contribution to the effectiveness of the FSA over the years, her strong management credentials and for the expertise and quality judgement she has brought to our Board discussions. She has made a lasting impact. We will be sorry to lose her for the organisation’s final year but she will depart with our thanks and best wishes.”

Martin Wheatley, CEO-designate of the FCA, said:

“I’m enormously grateful to Margaret for establishing the conduct business unit, which will go on to form the foundation of the Financial Conduct Authority.”

Tags: financial services authority, FSA, margaret cole
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