1. Developing a Code of Practice for all Debt Collection
Peter Wallwork MCICM
CEO, Credit Services Association

2. A Code of Practice for all Debt Collection
Who we are, what we do
What we want to achieve
What our positions are on the issues
What sector of debt collection we represent
What the Code of Practice is
What the problem is
What we are doing about it
What you can do to help

3. Credit Services Association
The Credit Services Association (CSA) is the only UK Trade Association servicing the Debt Industry – includes debt collection, debt purchase, tracing and other allied services
The CSA represents 90% of debt collection and debt purchase activity within the industry

4. Credit Services Association
Circa 300 members:
£57.5bn of debt held for collection = 48.5 million accounts
£50bn owned by debt purchasers
£4bn collections returned to the UK economy each year
Recognised Industry Code of Practice
Works closely with the Industry Regulators, Government and other Trade Bodies

5. Credit Services Association – Membership
Change in Membership since change in regulator to the FCA in 2014:
Members in 2012 – 422
Members in 2014 – 346
Members in 2017 – 301
M&A activity - consolidation
Change in shape of membership

6. Lobbying “voice of the collections industry”
The CSA has a strong consultative relationship with industry bodies, regulators, government and industry arbitrators;
Financial Conduct Authority / Ofcom / Ofwat / H M Treasury / Ministry of Justice / Cabinet Office / Information Commissioner’s Office / Financial Ombudsman Service / Lending Standards Board
Plus other industry Trade Bodies including:
UK Finance / CCTA / CCUA

7. Lobbying “voice of the collections industry”
Key Lobbying Goals:
Change Perception of the Industry
Achieve a Level Playing Field for debt collection
Establish the Code of Practice as the common standard for all debt collection

8. Challenging Times… General Data Protection Regulation (GDPR)
Data Protection Act 2018 – live from 25th May 2018
Senior Managers and Certification Regime
Replaces Authorised Persons Regime
CP17/20 – Incentives Remuneration and Performance Management
FCA review posted results March 2018

9. Challenging Times… Standard Financial Statement (SFS)
Trigger Figure review and increases
Call from CSA to Debt Advisers
Peter Wyman Report for MAS
Challenge to industry to pay Fair Share
CSA believes the owner of the debt should pay

10. Challenging Times… Breathing Space – Debt Respite Scheme
CSA Agrees it tries to contribute to a level playing field for collections but will it succeed??
Risk to industry of over-complicating existing ‘informal’ Breathing Space in CONC and CSA Code
Change to CCJs following MoJ Consultation
CSA Broadly agrees with proposals

11. How do Debt Collection Agencies rate in the scheme of things?
Water Companies 78%
LA’s - Council Tax 69%
Social Landlords 65%
Debt Collection Agencies 63%
LA’s - Benefits 63%
Banks 62%
Energy Companies 59%
DWP (Benefits) 47%
HMCTS (Court Fines) 40%
Mobile Phone Providers 37%
HMRC (Tax Credits) 34%
*Best practice league table as rated by Citizens Advice Bureau advisors - January 2016
Is there a two-tier problem developing with gov’t debt collection ? Are consumers in the hands of in-house gov’t debt collectors receiving less favourable treatment than those dealing with external FCA regulated DCA’s working for gov’t dept’s ?

12. Who do we mean when we talk about debt collection agencies?
It’s quiz time!

13. What are these called?

14. What are these called?

15. What are these called?

16. What are these called?

17. What are these called?

18. But the problem is…
They are all just Bongos to the general public – or at least they are all just drums
Only does the specialist who knows the industry really understand what each drum is, where it comes from and the noise it makes when someone hits it with their hands…

19. All of these are just debt collection, aren’t they??
Debt Purchasers
Early arrears
Reconnection visits
The Courts
Debt Collection Agencies
Legal
Enquiry Agents
Field Collectors
Tracing Agents
Enforcement Officers
Mortgage Arrears Counselling

20. CSA Code of Practice
We developed our Code of Practice, a Code recognised as ‘best practice’ by the Office of Fair Trading (OFT) and subsequently used as the basis for the Debt Guidance document developed by the FCA
We have also recently updated the CSA Code of Practice to include the high level standards of the FCA Regime:
Threshold Conditions
Principles of Business
Systems and Controls
Consumer Credit Rules

21. Going from Best Practice to Industry Standards
Should we be trying to have a standard more consistently applied across the industry?
Yes 
Why are we even asking this question?

22. Should we be trying to have a standard more consistently applied across the industry?
Significant changes in Financial Services debt collection over the last fifteen years
The ‘Regulatory Journey’ through time
The FSA and Treating Customers Fairly
We don’t call people in debt ‘debtors’ any more
Finding the right outcome is the right thing for everyone

23. Should we be trying to have a standard more consistently applied across the industry?
Why not?
Our debt is different
We have no choice but to supply
We don’t get to choose our customer
We have to continue to supply
We can’t afford to be soft on debt
We’ve no alternative

24. Multi-Regulatory Framework
Should we be trying to have a standard more consistently applied across the industry?
Why not one regulator for all debt collection..?
What standard should we use..?
How would it be applied..?
Who would police it..?
Is the CSA Code of Practice
The Common Denominator ?

25. What you can do to help…
Support the CSA Code of Practice as the defacto standard for all debt collection
Tell us if you see something in the Code that you think needs changing and we’ll consider making a change to it
Tell us if one of our members doesn’t do the right thing!

26. Credit Services Association
QUESTIONS ?