1. Agenda About FENCA EU payment index interesting figures the reasons/the consequences Recommendations Impact on collection business Challenges

2. 2NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 About FENCA 48% Foundation:January 1993 Seat: Brussels, Belgium Aims:- Protect and take care of the interests of the national member associations - Promote the development of European legislation within the debt collection industry about FENCA:21 (45 Affiliate Members) 1.600 debt collection agencies 65.000 employees 42 billions collected Board5 members Andreas Aumüller, President Maria Marcopoulos, Executive Director please see:www.fenca.org

3. EU Payment Index

4. 4NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Payment index 24 14 30 Europe Source: Eurostat EU 28 Population: 503 Million 20 Million companies (without financial sector) 125 Million employees 24 Languages 28+ sensitivities

5. 5NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Payment index Average payment duration and late payment in days B2B Source: intrum justitia- European Payment Index 2013/ KSV1870

6. 6NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Payment index Average payment duration and late payment in days B2C Source: intrum justitia- European Payment Index 2013/ KSV1870

7. 7NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Payment index Average payment duration and late payment in days Public sector Source: intrum justitia- European Payment Index 2013/ KSV1870 159 24 41 61 170 90 50 8 4 109 80 33 20 3427

8. 8NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Payment index late payment B2B Late payment is a „cultural thing“

9. Late payment the reason for the consequences

10. 10NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 late payment Reason for late payment 46% Reason for late payment B2B financial problems65% intential late payment45% administrative ineffieciency43% disputes7% Reason for late payment B2C forgetting to pay53% financial problems49% intential late payment37% unemployment16% disputes10% Source: intrum justitia- European Payment Index 2013/ KSV1870 Late payment between necessity and bad habit The cheapest form of credit

11. 11NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Late payment the consequences 58% Write off increases From 2,8% to 3,0% EU everage Equals the value of 350 billion Euro 48% say, to cut investments 49% see no growth 90% think, situation will not change the following 12 months 52% get paid on time < 30 days 87% say, their clients face financial troubles Get paid late causes late payment Public sector gives bad example Future negativ Vicious circle 350.000 Jobs lost 2012 due to late payment!

12. late payment – interesting figures

13. 13NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Late payment correlation to unemployment rate 46% Source: intrum justitia- European Payment Index 2013/ KSV1870 EU Commission 3,2%

14. 14NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Late payment Correlation to days in court (1st Instance) 46% Source: intrum justitia- European Payment Index 2013/ KSV1870 CEPEJ www.coe.int

15. 15NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Late payment correlation to collection costs 46% Source: intrum justitia- European Payment Index 2013/ KSV1870 Collection Costs in Spain, Greece, Portugal, Ireland or Italy de facto not enforceable Collection Costs easy to enforce

16. 16NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Recommendations 48% There is a high degree of correlation b/t speed in court and late payment in a given country: speed up the court process There is a high degree of corelation b/t cost for late payment (collection cost) days payment late: put or leave high collection cost in place there is a high degree of correlation b/t late payment of public and private sector: Public sector – pay on time! Availability of bank credit is important: implement measures to stabilise and incentivise banks

17. Impact on collection business

18. 18NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 resent impact on collection business Harmonization of Consumer rights Late payment directive 2011/7/EU -Between businesses (B2B) -Public authorities (PA) -Not for individuals (B2C) Reform on data protection legislation

19. 19NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Impact on Collection Business Norway 2011 o 50% less collection costs Nederlands 2012 o New regulation based on the late payment directive Norway Nederlands Germany Austria o On the agenda 2012/2013 with no result Germany o Old „system“ put into regulation after 2 years of uncertainty and heavy work

20. 20NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013Walter Koch, FENCA/KSV1870 Challenges Implement rules/regulations/codes of conduct for collection agencies and execute them Collect as much data as you can bundle force - get together with other agencies Use the collected data for political and press work Convince Authorities that collections agencies are important in fighting late payment Convince Authorities that late payment is a damage for delay and thus the one who caused the damage - even it is a private person – has to bear the costs (interests and recovery costs - creditor’s as well as the one from collection agencies or lawyers) Try to get involved in the law making process

21. большое спасибо Contact: Federation of European National Collection Associations FENCA Walter Koch Avenue Adolphe Lacomblé 69-71 Boite 5 1030 Bruxelles, Belgium Telefon: +43 5 01870 8348 Mail: koch.walter@ksv.at