CCR-PUBLICSECTOR CCR-PS


>> Top row, left-right: Frank Johnstone; Mark Taylor; Wendy Miles; Alan Smith


up as a better place as a result of what they are doing.


Has there been a major growth in the amount of information that debtors have available? RG: The ‘free men’ defence seems to be more common at the moment and I am finding that claimants are changing their strategy and standing up to these defences. They will run against these defences because if they roll over and allow them to gain a precedent, then that perceived success might be rolled out across the internet.


FJ: It is undoubtedly true that all big firms are now well aware of social media and, as the FCA monitors what the consumer forums are claiming, so should creditors in order to make sure that they can minimise some of that criticism. Over the past 12 months, it is clear that people are moving back towards litigation. Claimants are persuaded that there is value in it.


SJ: Clients are becoming more sophisticated and have scorecards as to who to pursue first, and maybe they will sell on the rest. They are being selective, and they are trying to identify an enforcement strategy.


MT: We have seen an increase in litigation activity, particularly within the utilities and debt-purchase sectors.


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Bottom row, left-right: Chris Else; Richard Gwynne; Sadak Miah; Paul Sharpe


Litigation allows creditors to obtain judgment, secure their position, avoid limitation issues, and to consider the most effective enforcement method using the data intelligence available to them.


FJ: It is possible that they are also getting a better understanding of what is meant by ‘forbearance’. Previously, they may have shied away in the name of forbearance, but now there is a realisation that, in many cases, that can be inappropriate and litigation is an appropriate solution for a number of customers who have arrears problems. The FCA’s final notice on the


Yorkshire Building Society case clearly demonstrates that point. The problem there was that the company was not identifying solutions early enough and was not actually coming to a solution for the customer.


SJ: We are seeing this across our work. Everyone wants to do the right thing. Everyone wants to introduce new processes and technology in order to use analytics to drive the right decisions. But they are having varied results because it is not that easy, and those that think it is, are failing pretty quickly. It is difficult for them to move forward


to say exactly what the next step is. They look forward and they are not entirely confident in the analytics they are getting. So there is an element of


www.CCR-PublicSector.com


paralysis – which can delay finding that right solution.


FC: Part of the problem is that, inconveniently, debt collection is about people! So you can have as many computers as you like, but people can get in the way and, if you want to make principles-based decisions, solicitors are best placed to deal with that because they have an in-depth understanding of the give and take of compliance. You have to have intelligence about it.


CW: I do not think that the mid-market of companies are terrified of their customers because they are generally in business-to-business. They are a lot smarter about what is worth putting money into and what is not. For years we have tried to get clients


to put in decent terms about late payment, making sure they claimed compensation and getting really robust indemnity-cost clauses. It has been hard to get them to do that, but, over the past couple of years, I have found that many more have responded. The competence in credit management over the past 20 years has risen hugely.


SM: TCF in the litigation area is difficult because clients have different views on how TCF should be applied in in a particular litigation situation. Applying differing views of TCF is a challenge for case handlers.


June 2015


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