The Analysis CSA


Universally challenged


The media must make a distinction in coverage between reputable and non-reputable debt collectors


John Ricketts President, the Credit Services Association info@csa-uk.com


Universal Credit are two words that have spawned many thousands in recent weeks, as commentators appear quick to have their say on the government’s new benefits scheme. What appears clear from what we hear


and read, is that the issue is not so much about the scheme itself – indeed it seems to receive general approval – but more about how the scheme is being implemented. The government seems keen to push on with the trial; the opposition want the trial to be put on hold while a number of problems are ironed out. And the biggest problem appears to be the time which it is taking for the benefits to come through (it can be six weeks or more), and the implications this is having on debt and the recipients’ ability to meet their monthly payments during any ‘waiting period’. If the facts are taken on merit, and the


Repayment plans are agreed with


customers based on an assessment of their income and expenditure, and which take into account when benefits payments are due. In every case, the repayment plan will be set to achieve a fair outcome, and our members will also continue to exercise forbearance – as they do currently – in line with FCA requirements and the requirements of our own code. Our members will do everything they can


to ensure that a difficult situation does not become an impossible one for those waiting for their Universal Credit payment. The challenge for the media – and


reports from various charities are similarly to be believed, then an alarming number of people are losing their homes because they are falling into arrears with their rent. Landlords, and some local authorities, appear not to be prepared to wait for the benefits to come through, to see their rents settled. They are kicking families out of their homes with alacrity, and that has to be a concern to us all.


various debt-management companies


the


Industry concerns Clearly, these private landlords, and certain local authorities, do not seem to be demonstrating the same forbearance and understanding that our own members show, and that is a worry. Not only is it a worry for the individuals concerned, who are often the most vulnerable in society, but it is also a concern for our own industry, and professional debt collection agencies who find themselves tarred with the same brush. We would like to reassure customers on Universal Credit that


members of the CSA will continue to show forbearance and work with the most vulnerable in managing through their debt. Professional debt collection agencies, that we represent, are either fully authorised by the FCA, or, at the very least, adhere to the CSA’s comprehensive Code of Practice.


November 2017


We are well versed in accommodating change, and have demonstrated this only very recently by working with thousands of customers impacted by


collapse of


the consumer who they represent – is to understand that debt collection is not a holistic activity. Not everyone who ostensibly ‘collects money’ – including local authorities, private landlords and even certain utilities – are bound by the same rules and regulations as CSA members. Whilst debt collection agencies who are collecting financial- services debts are regulated by the FCA, there is no such single regulator for the multitude of utility debts, council debts, or firms collecting rent arrears.


We would agree with those who say that the action of certain


parties in forcing individuals into a spiral of debt is unacceptable. But we would also say that to compare private landlords, and their difficulties with Universal Credit, with any challenges faced by one of our members is like comparing a push bike to a rocket ship. Members of


the CSA are professional organisations


with significant resources and sophisticated systems and one single aim: to communicate with the customer and collect to an affordable arrangement. We are well versed in accommodating change, and have


demonstrated this only very recently by working with thousands of customers impacted by the collapse of various debt-management companies. We match our talk with action. To that end, Universal Credit is just the latest issue to arise. Our


members will not compound the issue; if anything, we can be part of the solution, and will work closely with charities and the debt advice sector to achieve a fair outcome for all. CCR


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