Citizens Advice launches DMP provider partnership with CCCS

National charity Citizens Advice is today pleased to announce that after a competitive tender process the charity Consumer Credit Counselling Service (CCCS) has been selected as the CAB service’s preferred debt management partner for a one-year pilot scheme involving up to 100 bureaux.

The partnership will enable bureaux to introduce clients who need to set up a debt management plan to CCCS as a trusted partner.

The pilot will see CAB clients continue to receive an impartial and complete debt advice service from their bureau and continue to be advised about all the debt remedy options available to them.

For clients who choose to set up a DMP through CCCS, the bureau will automatically transfer the client's records to CCCS who will then negotiate with creditors, set up the DMP for the client and manage the client debt portfolio.

A recent report from the Office of Fair Trading has highlighted that the choices that consumers make to settle their debt problems can have serious consequences on availability and cost of future credit. The partnership will play an important role in helping vulnerable consumers deal with complex and harmful financial problems.

Gillian Guy, Citizens Advice Chief Executive said: “Citizens Advice Bureaux are currently dealing with 9,500 new debt enquiries every working day. But clients who need, and choose, to use a debt management plan provider face an increasingly complex market in terms of the number of potential providers, the services they provide and how to identify quality providers.

“This partnership with CCCS as a trusted supplier will give clients the reassurance of a DMP provider that has been carefully assessed and selected. Our tender process set high standards for quality of advice, customer service and synergy with Citizens Advice’s aims and values. CCCS, an established provider of DMPs, demonstrated their resounding commitment to our aims and a shared vision of a constructive and innovative partnership for the benefit of indebted clients.

“We hope that the partnership will set an industry standard to offer consumers a genuine opportunity to access free, quality debt advice that will help and motivate them to resolve their debt problems.”

Malcolm Hurlston, Chairman of CCCS said: "Working together, CCCS and Citizens Advice can transform the landscape for people in debt. "Debt management plans, which CCCS introduced to the UK in the early 1990s and which over 100,000 of our clients are now using, are vital in helping people sort out their personal finances and learn about the need to organise monthly payments.

"Two principles are clear: first, people in debt should not have to pay for help. Secondly, they should be able to use the channel they prefer - and which will work best for them.”

"Allying Citizens Advice Bureaux pre-eminence in face to face advice to the skills we have developed on the internet and using the telephone will make it likely that together we can offer the right service to all who need us.”

The award is subject to final contractual details, but CCCS will help Citizens Advice with the set up costs to improve client experience and increase capacity.

The Future Depends on Due Diligence

The inevitable is just that - inevitable and as received wisdom has it that the only two certainties in life are taxes and death, I suppose I'll have to acquiesce. That said, I've yet to come across anyone who has cheated death, but I rather think over the years I may have shaken hands with one of two individuals who have succeeded in cheating the former.

Which brings me neatly to the Spending Review. I couldn't put finger to keyboard until we at least had a skeleton of what the future holds. To a large extent, the Treasury being the sieve it has been in latter years,we already had many of the bones, and what bones that were added merely served to fill in the gaps.

I've spoken to friends and colleagues and not one disagrees that a sick economy needs medicine ... possibly even some element of surgery. I suspect that in the last months of the previous administration, they had attempted to staunch the flow with bandages.

Will Messers Cameron and Clegg pull it off? They just might. They've managed to keep Vince Cable on message despite all of the u-turns he has been forced to make. Kenneth Clarke is once again a voice to be taken seriously and those reassuring rounded Yorkshire soundbites from William Hague have ensured that the coalition front bench is manned by heavyweights despite the lack of experience in Government of the two leaders.

Which is all at odds with what has happened in Banking and Industry at large since the early 1990's. Then, age and experience was rejected in favour of the thrusting bright new things who would shake up the system as never before. And they certainly succeeded in that! However, having never experienced a recession, let alone a depression, come "Lehman-Gate" they were caught like the proverbial rabbits.

Former President Honoured with Lifetime Membership

The Credit Services Association (CSA), the voice of the UK debt collection industry, has honoured one of its former Presidents - Godfrey Lancashire - with Honorary Lifetime Membership following the announcement of his retirement from the CSA Board.

In a presentation at the CSA Gala Dinner in September, current CSA President Roger Lucas spoke of Godfrey's considerable contribution to the collections industry, notably as a strong advocate of proactive media communications that had helped improve the public face of collections nationwide:

"In his term as President many of us looked forward to his speeches, not just for the informed and interesting content, but also for his delivery," Roger says. "They were always eloquent and never boring! This eloquence, backed by a quick thinking intellect, was made full use of by the CSA in asking Godfrey to respond to many requests for interviews on radio and TV.

"Not many trade association representatives get anything from Nicky Campbell on the BBC's prime time consumer program 'Watchdog', but Godfrey clearly won the man's respect and in so doing made most of us feel proud, and advanced the image of the collections industry in the minds of many."

Dr Lucas said that Godfrey's work included representing the CSA in numerous meetings with MPs and Ministers, and ultimately influencing Westminster opinion: "We may never know what the value of such meetings may finally deliver," he concludes, "but we are completely certain of the value of Godfrey's contribution to our Industry, as a real giant."

Although retiring from the CSA Board, Godfrey will continue as the managing director of his own tracing and investigations business, London House International.

The Score!

The Score magazine

You will shortly be receiving the latest edition of our quarterly publication, "The Score", which we hope you enjoy. There is a link which will also give you access to the last four back issues.

Do please feel free to contact us with your comments and, as always, many thanks for your continued support of London House.

In the meantime, I would like to take this opportunity to wish  you a Very Happy Christmas and a Prosperous New Year from all of the team at London House.

Godfrey Lancashire.

London House news [Dec. '10]

We have now held our annual Franchise Owners' Conference in the wonderful surroundings of Whittlebury Hall, Silverstone. This event grows every year, and this year was no exception. Many of our Franchise Owners joined us (those that could not were completing repossessions, undertaking surveillance, or snow bound!) and we listened to some excellent speakers in the morning who were clients and friends of London House. Our thanks go to Parry & Co Solicitors, Concateno Drug Testing Services, The Credit Services Association, Forensic Vetting and Derek Arden for their support.

The afternoon was given over to London House matters and an opportunity to share best practices and discuss the continued growth of London House.

Of particular note is the award of Franhise Owner of the Year, voted for by the Franchise Owners themselves. This year the award went to Dave Williams of Central London for his continued support and help given to the whole network. Well done Dave, it's very well deserved.

Godfrey Lancashire

Can we have our money back please?

London House had a case recently where our hunches, skills, determination and "dog with a bone attitude" paid off for our client.

We were instructed by a client to trace a subject who it was believed had committed cheque book fraud in excess of £1m. Our searches led us to find several linked addresses to the address provided, and one address in London was of interest to us. Attending discreetly at the address we obtained information that led us to believe there was a lead to follow in Spain. Spending time in Spain we ascertained that the subject had established residence there and continued enquiries in the area finally took us back to two additional properties in London that our client had no knowledge of. This subsequently led to our client securing legal charges over both assets and put them in a position to negotiate a full and final payment.

Focus on... Debt or Asset Recovery

Increasingly we are being asked to help clients recover commercial bad debts or to locate assets that they may not have been aware of. Our Franchise Owners always attend at the address of the debtor on behalf of our client and negotiate in a skilled, professional manner to recover overdue invoices. In the event that the debtor proves reluctant to pay, we are able to advise on the best way forward for that particular case.

We can also be asked to try and locate assets that the debtor may have "hidden away" such as property or machinery. Whilst always operating within the Law we complete our instructions discreetly and report back to our clients. Our report will provide them with details of our findings and help to paint a picture of the subject's lifestyle.

Debt or Asset Recovery

Football's coming home?

Well what can we say, except a resounding No, or should that be Het.

Despite being given verbal assurances of enough support to get us through to the last round of voting those votes failed to materialise.

Not even the attendance of our own three lions for the last days bouts of diplomacy were enough to get us past the first round of voting. Two votes - one of which was our own! Gutted!

Milton Keynes and the rest of the country look on in astonished amazement. We had the best presentation, the best technical bid, the best commercial case. Tales of fraud and corruption will occupy the press for months to come. We know some good investigators!

... last month gone!

It has been an interesting month with lots happening, not least the snow and ice which has gripped our shores, and now Christmas is just around the corner. Where has the last month gone!

We hope you enjoy the following but please do let us know if there is any industry related matter you would like us to cover in future editions.

The Credit Insurance Market Place

by Tony Hannigan

There has been a considerable change in risk appetite and flexibility during the last 12 months. Anecdotally at least, 2009 was the most difficult trading year the credit insurance market has ever experienced, if in reality it was worse than the recessions of the 70’s, 80’s and 90’s when comparing claims costs on a like for like basis is questionable.

However, what cannot be argued with is the dangerous combination of increased claims activity in both number and value of claims submitted, very low premium spends and a general exodus of policyholders deciding to self insure which the market sustained in 2009.

This combination left the market with an imbalance between revenue income and potential liability. This could only be controlled by implementing a programme of reduced credit limit coverage on buyers and in many cases withdrawing cover completely. At policy renewal, increasing premium rates and restricting policy flexibility was the norm. This renewal philosophy across the entire Market made any attempts at innovation and flexibility extremely difficult.

Coming into 2010 the market has contracted considerably. Individual insurers have not formally publicised the true impact of lost business due to their underwriting approach, but is fair to say it has been significant. Claims numbers across the market during 2010 have been considerably lower than expected. Indeed the performance to date of the major credit insurance underwriters all re-affirms this.

Whether this is due to an actual upturn in the economy, or the result of a reduced policyholder base producing less over all claims numbers and avoidance of claims due to credit limit reductions and cancellations, is difficult to gauge at this time. What is far easier to gauge is the considerable upturn in the market’s appetite for retaining existing policyholders and to win new business. This is reflected in both buyer risk underwriting, premium costs and policy structure flexibility. There is experience of clients being offered up to 8 separate insurers, all vying to win their business at this renewal, whilst only the incumbent underwriter was prepared to offer any terms at all in 2009.

Furthermore cover appetite on some well known buyers has returned too. In 2009 there would have been no or very little cover available on the likes of Ford Motor Company, Jaguar Land Rover or Clinton Cards, cover has now returned, subject to the overall attractiveness of the specific case to underwriters.

This shift change can only benefit existing credit insurance purchasers and new entrants to this type of cover. There are also some signs of innovation returning to meet prospective clients needs. In particular, Towergate Credit has recently launched a new credit insurance product aimed at the sub £350,000 SME market. A sector that now has to all intents and purposes been unable to purchase cover due to the relatively high entry premium costs (c£3,000) and excess deductibles of £500 - £1,000 per claim that reduce considerably the benefits of cover. Towergate’s new product branded InvoiceProtect has a fixed £1,870 premium, £250 excess deductible and simple administration requirements.

For more information, please contact Tony Hannigan,

Senior Account Handler Complete Commercial

on Direct Dial - 01908 693210

or Email Tony at tony.hannigan@towergate.co.uk

or visit www.towergatemiltonkeynes.co.uk