Archive for the ‘International Debt News’ Category

Looking For a Debt Collection Agency? Let Us Help …

Wednesday, July 13th, 2011

If you are looking for a debt collection agency then finding the right one can be quite a daunting task. In the UK alone there are hundreds to pick from ranging in size from small one man bands to large corporations with employees in the thousands.

The problem is, which one to choose? You know you need to choose one of them – you have a legitimate debt to be collected and you want to ensure that you find the debt collection agency that is best suited for the task.

Let us help. The following guidelines will help you to find the rightconsumer or commercial debt collection agency for you.

The debt collection agency that you choose should represent you, or your company, in a professional manner and provide a satisfactory rate of recovery while maintaining your public image or brand.  As with anything, you want to get as much back as possible for as little as possible up front but when it comes to a debt collection agency you really do get what you pay for. If you overlook this factor you can end up with a commercial or consumer debt collection agency that not only prejudices your chance of a successful recovery but can also damage your own reputation.

The debt collection agency you choose should be:

  1. Fully licensed members of the Credit Services Association (CSA)
  2. Experienced in the recovery of your specific type of debt or related industry.
  3. Experienced in the type or age of debt you are looking to have recovered. An invoice that is 30 days overdue is a completely different kettle of fish to one that is 2 years overdue.
  4. Is ISO accredited to ensure the level of service provided is optimal.
  5. Provides you with regular updates as to the progress of your account to keep you informed of what is happening.

If the company you choose can tick all of the boxes above then you are well on the way to finding a debt collection agency who is right for you.

48% More Buyers are Obtaining Mortgages

Sunday, July 10th, 2011

In the last three months, West End specialist estate agency, LDG, has seen a 48% increase in buyers using mortgages to finance their purchases.

In the first quarter of 2011, 73% of LDG’s buyers paid cash for their properties, but this has now dropped dramatically to just 25%.

Ben Everest, a partner at LDG, comments:

“This huge swing in how property purchases are financed is very interesting and there could be a number of reasons for the shift.”

“For example, buyers who have large cash deposits may be opting to lock in to fixed rate finance deals while interest rates are still low; it was announced today (7th July) that rates will remain at 0.5%, but it is anticipated that they will rise later in the year.”

“Whilst mortgage availability is still a big problem at the lower end of the market, those who have large deposits are able to access favourable repayment rates and so the predicted capital appreciation which London properties can expect to achieve in the long term can eradicate the costs of borrowing, leaving buyers with more cash capital to use for other ventures which can give them a good return on their money.”

“The property market in the West End is very consistent at the moment; as anticipated, the spring market saw an increase in transaction volumes.”

“For both the first and second quarters of this year, around 60% of our buyers have been purchasing main family homes, and just under 20% have purchased for investment purposes.”

“These trends correlate closely with the first half of 2010, and I expect the consistency to remain as we move into the third quarter of 2011.”

“Similarly, the nationalities of our buyers continue to reflect those which we experienced last year; around 60% are from the UK, 20% are from countries within the EU, and a final 20% are from the rest of the world.”

“The London property market continues to attract foreign buyers as it is viewed as a ‘safe haven’ for investment and the weak pound means that buyers from Europe and the Middle East can benefit from exchange rates.”

 

CSA to be Consulted in OFT Guidance for Debt Collectors

Wednesday, May 11th, 2011

In the forthcoming update to the Office of Fair Trading (OFT) Guidance for Debt Collectors, which is expected in the latter part of the year, it has been announced that the Credit Services Association (CSA), who are the voice of the Debt Collection industry in the UK, will be consulted as a key stakeholder.

The CSA’s Code of practice, which was originally published in 2003, has had large parts of it’s content used as the basis for the new Guidance. It is expected that the new Guidance will have clearer instructions around data accuracy and a specific section dedicated to debt purchase according to CSA’s Head of Membership, Compliance and Educational Services, Claire Aynsley:

“It is vital that the consultation has insight from those in the collections and debt purchase sectors who have front line knowledge of collecting debts in often challenging conditions,” she says.

“Members of the CSA, and colleagues within the Debt Sale & Sellers Group (DBSG) will help ensure that any future Guidance is properly informed, so that best practice can be highlighted to the ultimate benefit of all parties.”

No win – No fee Debt Collection…. too good to be true??

Tuesday, April 12th, 2011

A recent e-news article from the UK Debt Collection Bureau explores the myth behind no win – no fee Debt Collection.

Whilst British Business remains in the grip of tight economic conditions, over the past couple of years, there has been a rise in the demand for Debt Collection Companies advertising themselves as operating a ‘No win – No fee’ policy when this clearly is not the case. As this practice continues to grow, so does the misinformation surrounding this ‘no win – no fee’ culture within the Debt Collection Industry.

The position of some is that as they seemingly pay nothing initially, the Debt Collection firm in question will work harder to recover the money and that there is nothing to be lost, only gained. The simple truth of the matter is very different and should be taken very seriously.

The ‘No win – no fee’ term is simply being used as a marketing slogan in the Debt Collection Industry to mask over a hidden ‘drip pricing’ structure and quite often companies that advertise themselves as ‘no win – no fee’, require a membership of joining fee which straightaway, is an immediate contradiction of their key selling point which should give a clear indication of what is to follow.

Often these companies will charge exorbitant commission rates, quite often as high as 50% (even higher in some instances) and will have hidden costs contained within their services. It is also common that these type of companies are fronts for firms of fee earning solicitors who will simply wish to matter to proceed to litigation so they can begin to apply their hourly fees (Average £250 per hour) as well as any other costs incurred therein. There have been instances where a debt has been collected and the actual amount that was owing in recovery fees was nearly 3 times what the actual debt was in the first place

Other ‘No win – no fee’ companies have ties with Debt Management and Insolvency firms looking for free, direct and easy lead generation as once details of a debtor are supplied, they will bombard them with details of ‘how to clear their debts with one easy payment’ which  involves the usual bankruptcy, liquidation or IVA/CVA option. This a far more financially lucrative option than actually attempting to collect the debt and will severely prejudice any of your attempts to recover what is owing to you.

With most ‘no win – no fee’ Debt Collection companies, it is simply a numbers game. It is a simple economic fact that a company cannot operate without cash flow so how can a Debt Collection firm work for ‘free’ or deliver the service they promise for ‘free’ without some sort of guarantee. Some Debt Collection firms actually have it written in their Terms & conditions that if they fail to collect then you will be liable for their costs.

No company can operate without cash flow so the question is, what will they actually do to recover your money? They cannot offer you any form of service by means of updating you etc and they will try to charge you where possible. More often than not, it is simply a numbers game. If you have a case with no merit then maybe this is a valid option for you but once again, you may be liable for an invoice in the event that they cannot collect it.

5 Facts to consider

Fact 1: Many Debt Collection Companies that advertise as ‘No Win – No fee’ will still require a joining fee or membership fee as they like to call it. 

Fact 2: No Bona fide Debt Collection Company operates any form of ‘Money Back guarantee’ scheme

Fact 3: Some ‘No win – No fee firms’ allegedly have ties to Debt Management & Insolvency Firms which will seriously prejudice the potential of successfully recovering your debt.

Fact 4: The commission rates charged by ‘No win – No fee’ firms will be far higher than other means.

Fact 5: Most ‘No win – No fee’ operate excessive drip pricing structures and minimal transparency in relation to what is actually being done.

As the old saying goes ”if something is too good to be true then it probably is”. You may think you have nothing to lose by using a ‘No win – No fee’ debt collection company, you will probably lose more than you thought!

Banks Asset Recovery May be Delayed by Consumer Debt

Wednesday, March 30th, 2011

Fitch Ratings says it expects that elevated levels of consumer debt may prolong the recovery of the asset quality of South Africa’s major banks.

Earlier the ratings agency had said the due to the high levels of consumer debt and a difficult operating environment there had been an increase in the amount of consumers who had been applying for a debt review as part of the National Credit Act’s debt review process.

It is estimated by Fitch Ratings that the value of the debt review exposures of the four major South African banks was 21 billion rand during 2010. It was also estimated that 200,000 debt review applications had been received by December 31st 2010 and that there was approximately 7000-8000 new applicants each month.

Due to unforeseen delays the banks have seen their attempts to begin debt recovery of the debt review exposures hampered.

Daniel De Bie, a director in irch’s financial institutions teams said “To minimise the impact of these delays certain banks have proactively used loan restructuring and in certain instances have sought to terminate the debt review process.”

“However, a recent high court ruling on credit providors’ right to terminate the debt review process and a moratorium until the end of June 2011 may further delay banks’ debt collection efforts and negatively effect collateral values.”

Fitch said it believed that the asset quality indicators of the four major South African banks would remain at elevated levels due to the delays.

Bailiffs Required for Coventry

Tuesday, January 4th, 2011

Those trying to dodge paying outstanding traffic debts in Coventry should be aware as Coventry City Council is on the hunt for bailiff firms to hunt down the non-payers.

A tender has been opened inviting bailiff companies to vie for one of three openings to collect revenues and parking enforcement over a period of three years. Those bidders who are successful will be required in pursuance of road traffic debts arising from non-payment of parking penalty charge notices and bus lane enforcement penalty charge notices issued under either the Road Traffic Act 1991, Traffic Management Act 2004 or Transport Act 2000.

The contract is said to be worth £3.75million with tendered bids to start in January 2011.

HMRC plots £1bn debt recovery contract

Wednesday, December 8th, 2010

HM Revenue & Customs (HMRC) is planning to launch a major tender for the provision of debt recovery services that will have the capacity to accommodate debt placements to the tune of £1bn per year.

HMRC’s commercial directorate has revealed a prior information notice – a forerunner to a full tender – to provide potential bidders with information on its plans to seek debt collection-type matters. Full details are sketchy but the body is presently undertaking a “gathering exercise… to identify the types of services that may be required”. The provisional plan is to split the contract into lots for debt collection agency services and allied debt collection services. Bidders for the latter will need to comply with a performance specification to enhance debt recovery rates through more effective use of available data, analytical tools or market knowledge.

Significantly, there is potential for further pan-Government opportunities. Successful bidders could be allowed to work for other Central Government departments, executive agencies and non-departmental public bodies. This would open the door to work with scores of organisations, including Acas, the Health and Safety Executive and the Serious Fraud Office.

Last month, it was reported that HMRC’s bad debts stood at £6.4bn, which is a 40 per cent leap on 2009

Debt collection firm files for Chapter 7 bankruptcy

Tuesday, September 21st, 2010

A company that used to specialize in collecting delinquent debt has sought protection from creditors for itself.

The ironic bankruptcy case struck Hudson and Keyse LLC of Painesville, Ohio, which has been open for more than two decades.

The company, which filed for Chapter 7 protection at the U.S. Bankruptcy Court’s Northern District of Ohio, owes more than $63 million to more than 200 creditors, and reported assets of about $288,000, according to Crain’s Cleveland Business. The company effectively closed and fired its 40 employees on September 1. It has downsized from about 150 since 2008.

Hudson and Keyse has been in financial trouble since 2008, thanks to “inappropriate management,” according to CEO Mark Finston. The company owes the most – about $60 million – to Vion Holdings of Atlanta, and the majority of its creditors are vendors. Also counted among those it owes money are several employees due thousands in back wages.

The industry news source Inside Accounts Receivable Management said the company was paying creditors as much as twice the market price for the debt it purchased and attempted to recoup.

Utilities get debt collection option

Friday, September 17th, 2010

Regulators have given Texas utilities a payment-recovery option when electric users sign up with new providers and abandon their old power debts.

The Texas Public Utility Commission on Wednesday approved a so-called switch-hold rule, which takes effect June 1.

Customers who are behind on their payments cannot just refuse to set up payment plans and then switch to another provider.

The Dallas Morning News reported Thursday that utilities must provide electricity to low-income customers during very hot or cold weather and to people who rely on electronic medical devices to survive. Companies must also offer deferred payment plans in some circumstances.

In return, the companies asked for the ability to place a switch-hold on customers who do not pay.

“I think we’ve struck a great balance,” said Donna Nelson, the PUC commissioner who worked on the rule. “People who are trying to do the right thing aren’t harmed or penalized.”

PUC Chairman Barry Smitherman says all customers have to do is pay off the bill before they switch to another provider.

“The normal, average person understands that and doesn’t have a problem with it,” said Smitherman.

Ronnie Lowe, director of the Lancaster Outreach Center, praised the new rule.

Lowe deals with people who he says switch electricity providers often to avoid bills, then ask the charity for help. Another trick is putting the electricity bill in a child’s name, which can create a blot on a child’s credit report before he can even get his own credit card, according to Lowe.

“One of the things that we’re trying to do is promote self-sufficiency,” said Lowe. “We really want people to understand that the bill is their bill, and they’re responsible for it.”

Lowe, a member of TXU Energy’s Low Income Advisory Board, says the utility gives the Dallas-area outreach center about $60,000 a year to pay utility bills for the needy.

Some advocates question whether the PUC can bar electric companies from signing up customers dropped by other providers.

“We’re going to explore legal avenues to rein in what we see as an abuse of their power,” AARP spokesman Tim Morstad told the Fort Worth Star-Telegram.

Facebook postings can damage users in legal, financial arenas

Wednesday, September 8th, 2010

Comments and pictures parents post on Facebook can come back to haunt them during custody battles, debt-collection efforts and job applications.

A compromising Facebook post “is like a smoking gun in that you can’t destroy it,” said attorney Shawn Kenney, the law department team leader at Thrush Law Group.

Kenney said he’s seen custody cases hinge on arguments of parental incompetence stemming from Facebook posts. He recalled a case in which a father posted a picture of himself proudly displaying a 3-foot acrylic bong. In another case, Kenney said a mother wrote about how she’d been out with her girlfriends “getting trashed for the third time this week.”

“When people put information on Facebook it may not be in their best interest and does come back to haunt them in ongoing litigation involving custody,” Kenney said, adding he’s also seen a mother call her young boy “my pimp” and a father post a picture of himself baring tattoos while posed with a butcher knife, joking that he was a killer.

Divorce attorney Robbie Lewis, who owns the Law Offices of Robert G. Lewis, P.C., has also seen Facebook rear its often-ugly head in custody battles.

“The whole face of discovery in divorce has really changed over the last few years,” Lewis said. “I can’t tell you how many times clients have found out about extramarital affairs through looking through their spouses’ telephones in the middle of the night, or checking their spouses’ e-mail or Facebook accounts.”

Lewis said in the past, clients would hire private investigators to dig up dirt on spouses. Now the evidence can be found with a few mouse clicks.

“People put silly things on Facebook accounts – pictures of themselves or other people in bars doing inappropriate things” that end up presented at trial, Lewis said.

Attorney Grady Wade, who, along with his work in other legal fields, defends clients in debt collection cases and sometimes collects debt for creditors, said while he doesn’t personally use Facebook to investigate debtors, anything people post publicly on Facebook is fair game.

“If they put stuff up there, it’s pretty much for public use,” Wade said. “If they don’t make the page private, then it’s for public use and they don’t have any expectation of privacy.”

The Fair Debt Collection Practices Act, which prohibits abusive behavior and restricts the methods collectors can use to locate debtors, doesn’t prohibit using social networking sites.

Wade said third-party debt collectors aren’t allowed to publicly shame debtors. For instance, a collector couldn’t become a friend of a debtor under a false pretense and then post something on his wall about him owing money.

The restrictions don’t apply to the creditors themselves, Wade said, adding that he’d advise clients to record any contact with a third-party collector.

Tucsonans applying for jobs at the University of Arizona, the region’s second-largest employer, had best clean up their Facebook profiles.

UA human-resources manager Chris Wolf said managers dig up whatever information they can to vet job prospects, and Facebook is within limits.

“If a candidate regularly references violent behavior, then that may be a red flag,” Wolf said. “It’s more likely that a hiring manager will discover that someone references topics such as their political views – irrelevant when it comes to determining whether they can perform well, yet it may create an unintended bias.”

No matter the context, Kenney said people should stop thinking of Facebook posts as semi-private announcements to close friends. He recalls a mentor’s advice from decades ago, advising him to be careful about what he put in writing and says it applies to social networking sites:

“Never put anything on there you wouldn’t want on a billboard on the highway,” he said

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