Posts Tagged ‘debt collection’

New Debt Collection comparison site launched

Wednesday, August 27th, 2014

Leading UK Debt Collection service supplier best4 network have announced the launch of a new website to partner its existing website best4debtcollection.co.uk

The new website launched in early August is intended to assist companies and individuals across the country and the world in their search for the right debt collection solution for their needs.

The new website best4debtrecovery.co.uk  will enhance their growing reputation and increase their exposure on the world wide web.

Tony Smith, team leader at Best4 said “We have enjoyed great success with our initial website, helping thousands of people and businesses in securing a low cost professional debt collection service.”

“We use only the very best in British Debt Collection and are pleased to partner companies such as Federal Management & Frontline Collections, gaining discounted rates for our users who in turn obtain the services of elite premium Debt Collectors”

The service that Best4 provides has been used by large companies as far afield as Japan with recently a large electronics company turning to the Best4 site in their quest to find the best that the UK has to offer in Debt Collection.

As well as dealing with large multi nationals and national firms, Tony informs us that they also look after small traders and landlords too.

“We receive enquiries from all sectors and are only to happy to help where there is a valid dispute.” He continues “We also receive some bizarre enquiries too ranging from a drunken man who wanted us to help him recover £20 from a card game in a pub to a woman who wanted to recover monies paid to a plastic surgeon because she wasn’t happy with the size of her boobs after a enhancement procedure”

Best4 have announced further plans to expand on their existing operations with a range of new services including a free letter before action for all new clients. Their trusted service has quickly developed a solid reputation by delivering a quick and efficient service that matches users with the right kind of service providers.

Choosing a Debt Collection Agency is a very important decision when there are so many factors to consider such as cost, transparency and brand/reputation protection.

All of Best4′s partners are considered their leaders in their respective niches and cater from all industries from private schools and nurseries through to large value commercial debts across the globe.

Federal Management Debt Recovery & Legal Services are one of the key suppliers to Best4. As the UK’s leading Commercial Debt Recovery service, this demonstrates the capability of the Best4 group and has served to only enhance their credibility within the debt collection industry.

In the modern day business world, Debt Collection is viewed as an essential aspect of credit control as quite often debtors do not respond. In light of the recent uproar of the use of ‘in-house’ debt collection tactics by banks and other financial organisations, the need for professional debt collection has grown substantially.

The Best4 network helps to feed the growing demand for value, quality and professional debt collecting services.

Author: James Finch

 

OFT to investigate Payday Lenders Debt Recovery practices

Tuesday, November 20th, 2012

The OFT has opened formal investigations into several payday lenders over aggressive debt collection practices. It is also today writing to all 240 payday lenders highlighting its emerging concerns over poor practices in the sector.

These actions are set out in a progress report published today as part of the OFT’s compliance review of the payday lending sector. It highlights concerns about:

the adequacy of checks made by some lenders on whether loans will be affordable for borrowers
the proportion of loans that are not repaid on time
the frequency with which some lenders roll over or refinance loans
the lack of forbearance shown by some lenders when borrowers get into financial difficulty
debt collection practices.
The OFT is continuing to gather and analyse information about the activities of payday lenders as its compliance review progresses. It also expects to warn the majority of the 50 firms inspected, which account for the majority of loans, that they risk enforcement action if they do not improve specific practices and procedures which came to light when they were inspected. The OFT will require those lenders it warns to provide it with independent audits to verify that they have improved their practices and procedures to comply with legal obligations and expected standards.

The emerging findings are based on information from a wide range of sources, including:

a ‘sweep’ of the websites of 50 payday lenders
a programme of inspections of over 50 individual lenders
686 consumer complaints
a mystery shopper exercise involving 156 online and high street lenders
1,036 responses to a survey of businesses, trade associations and consumer bodies.
The OFT will publish a full report in the New Year setting out further findings on compliance, including whether wider action is needed to tackle problems in the sector.

The OFT has also today published revised Debt Collection Guidance, focusing on continuous payment authority (CPA), a mechanism commonly used by payday lenders to collect repayments.

The guidance helps to ensure that traders with a consumer credit licence do not misuse CPA. It makes clear that the OFT expects lenders’ use of CPA to be reasonable and proportionate, and to have regard to a borrower’s financial position.

The guidance sets out the minimum standards expected of traders and includes clear examples of unfair/improper use of CPA including:

using CPA without the informed consent of the borrower or in ways that have not been agreed
failing to explain adequately how CPA works and how it can be cancelled
not taking steps to establish the reasons for the payment failure and whether the borrower may be in financial difficulties
trying to take payment where there is reason to believe that there are insufficient funds in the account
continuing to use CPA for an unreasonable period after a scheduled payment was due.
Breaching OFT guidance can lead to enforcement action.

David Fisher, OFT Director of Consumer Credit, said:

‘We have uncovered evidence that some payday lenders are acting in ways that are so serious that we have already opened formal investigations against them. It is also clear that, across the sector, lenders need to improve their business practices or risk enforcement action.

‘Our report shows that a large number of payday loans are not repaid on time. I would urge anyone thinking about taking out a payday loan to make sure they fully understand the costs involved so they can be sure they can afford to repay it.

‘Our revised guidance makes it absolutely clear to lenders what we expect from them when using continuous payment authority to recover debts and that we will not accept its misuse.’

The Payday loan industry has been the subject of close media scrutiny recently and Frontline Collections became one of the first UK Consumer Debt Collection Agencies to publicly denounce the payday loan industry citing a lack of ‘ethics’ and ‘moral coding’ within their lending criteria.

£6 Million Recovered Each Day by Debt Recovery Agencies

Thursday, July 12th, 2012

Figures show agencies recover nearly £6 million of debt every day.

  • New generation of consumers in debt for the first time
  • Industry calls for access to the Full Electoral Register to counter data accuracy issue

Levels of debt being collected by members of the Credit Services Association (CSA) have returned to pre-Christmas levels, according to the latest Quarterly figures, as consumers look to regain control of their finances.

The gross monthly total of consumer debts collected for the final month in Q1 2012 (March) stands at £172.088 million – a return to a level last seen in November 2011 (£172.862mn) following a dramatic fall in December (£147.476mn).

CSA President, Sara de Tute, attributes this to an increase in placements in November contrasting starkly with the consumers hanging on to their money in December to spend on Christmas: “It is quite usual for the monies collected to decline over Christmas and the immediate aftermath as agencies show forbearance with the consumer’s position,” she says.

At the end of Q1 2012, the total value of unpaid consumer debt held by CSA members for debt collection stood at £58 billion (£58.316bn), comprising £31 billion (£31.264bn) placed by creditors with Debt Collection Agencies to collect, and a further £27 billion (£27.052bn) of purchased debt owned by Debt Buyers. This represents a slight increase on the total for Q4 2011 (£58.179bn – a difference of £137 million).

The total volume (i.e. number) of consumer debts awaiting collection by CSA members remains at a staggering 32 million (31,781mn) as at the end of March 2012, a slight fall on the previous Quarter (32,130mn). Debts are being outsourced for collection by ‘new’ creditors within the private sector and parts of national government – including the Department for Work and Pensions (DWP) and the HMRC – who no longer see an issue with recovering monies vital to the public purse.

The total value and volume of unpaid debts are high, Sara says, partly as new types of consumers fall into debt for the first time: “Our members are noting a trend of ‘new’ consumers falling into debt for the first time, and are working with them to agree a repayment schedule or reach a settlement wherever possible, and this is reflected in these latest figures.”

Yvonne MacDermid, Chief Executive of Money Advice Scotland, is not surprised that the CSA is seeing many different types of people in society, affected by debt arrears: “The recession is affecting everyone in one way or another,” she says.

“Many consumers have nothing left to cushion them from any emergencies which arise, and as a consequence they find themselves perhaps for the first time in arrears. The key to getting back on the road to recovery is to seek help from the money advice agencies, many of which offer advice for free, and, of course not to ignore the problem and to make contact with creditors or their agents.”