Personal Debt approaches £1.5 trillion

Personal debt is now standing at £1.46 trillion according to Credit Action, the debt charity.

However, although the amount appears on the surface to be yet another eye-watering statistic, the figure covers £1.23 trillion which is secured against property (this property stock stays fairly steady at about £6 trillion ... over 4 x the indebtedness). Also, the headline figure went up by 1% year on year.

Current figures have kicked out an average debt per capita of just over £8,750 (excluding mortgages). Including mortgages, that figure shoots up to just under £58,000.

Current forecasts hint at a figure in excess of £113,000 by 2015. For the 11 million mortgagees out there, they owe an average £30,000 representing 126% of annual income. Perhaps more worrying, the average household personal debt on credit cards, personal loans - ie unsecured finance stands at £4,500. Extrapolate out households without any unsecured debt and that figure grows exponentially. We can’t be complacent.

Most European countries, even those in crisis, do not have personal debt figures of this order. Bear in mind the already flagged up public sector redundancies and the inevitable knock on into the private sector, and a 1% rise can be seen as a target, but the eventual figure could be considerably higher.

Cheque payments winding down

The Payments Council have set 31st October 2018 as the target date for closure of the UK Cheque Clearing - the use of cheques will stop from this date. The final decision on a closure date will be taken by the Payments Council in 2016 and will be dependent on there being a clear consensus across all interested parties.

This decision was taken against a backdrop of falling cheque volumes and after detailed consultation across the UK among cheque users. However, cheques remain a key means of payment, so the withdrawal of cheques will be a significant change for many businesses and individuals.

The use of guaranteed cheques has seen a particularly sharp decline in recent years and the guarantee service will cease from 30th June 2011.

While businesses will still be able to accept cheques after this date, they will not be supported by the scheme. Any cheques written up to 30 June 2011 will continue to be guaranteed as normal.

Although businesses can still continue to write cheques as normal, they should start to consider what the implications of their withdrawal means for their organisation. Some questions to ask yourself ...

• Do you currently receive cheques as payment? If so, how do you want to be paid in future?

• Will you still accept cheques once they are no longer guaranteed?

• Do you currently pay by cheque? If so, how will you pay in future? Remember, June 30th 2011 is already less than a year away!

Stepping Down, But Not Out

You may be aware that Godfrey Lancashire is stepping down from the Board of the Credit Services Association at the CSA & DBSG Annual General Meeting on 9th September 2010.

Godfrey has served on the Board of the Association for almost 14 years, and his dedication, vision and commitment have undoubtedly helped to shape the industry we see today and paved the way for the future.

Godfrey’s particular passion for the raising of industry standards has been evidenced in his interest in the development of industry training and the shaping of the CSA diploma, of which Godfrey remains a tutor.

With a successful term as President, Godfrey has since taken the CSA Public Affairs lobbying to great heights, and has graced the halls of Westminster on numerous occasions to fly the flag for our industry and create awareness of the challenges we face.

I would like to take this opportunity to thank Godfrey for all of his hard work and dedication to the CSA, and there is no more fitting place to do so than in your own London House publication! Godfrey – your support to the industry has been unwavering and your contribution great. You will be missed.

Dr Roger Lucas

President, Credit Services Association

About us

Godfrey Lancashire and Brian Hughes founded London House in 1995 to provide a professional range of services to Banks, Law Firms and many other blue chip companies. We undertake work for private individuals and all types of business - large and small. Our core business is gathering information and providing comprehensive reports to enable our clients to make cost effective decisions and assist them with any appropriate action.

We offer a range of credit management services which are tailored for both the consumer and corporate sectors but our expertise lies in the field. We endeavour to paint a picture and provide important information to our clients. We are distinguished from some of the more traditional agencies by offering a nation-wide company with local knowledge and the ability to discuss individual cases as required which can often lead to cost effective action.

With our head office in Milton Keynes and Regional offices throughout the UK, we are able to keep our prices competitive. All our regional office managers have extensive experience within the investigation industry, some with Police background, and work to the highest ethical standards and to the Industry published Code of Practice.

Godfrey Lancashire ACIB FICM, Managing Director, spent 25 years with Barclays Bank, the last five of them as Head of Risk Management. Godfrey has considerable experience of the credit industry, with particular expertise in collection and recovery operations. President of The Credit Services Association, 2005-2007.

Brian Hughes MICM, Director of Operations, a member of the World Association of Professional Investigators, has more than 15 years professional experience in the credit industry. A qualified investigator with extensive knowledge of the legal profession and court procedures, Brian is responsible for training and for ensuring quality and service levels are met.

Mark Blaber, Business Development Director, spent 25 years in the banking industry. Positions held during that time include Senior Corporate Manager with NatWest and Regional Business Manager with Abbey Business.

The First 15 Years

Turn your life around with London House

By investing in a London House franchise, Simon Moppett has turned his life around and now has complete control of his work/life balance.

Juggling spending time with his young family while working shifts as a nightclub manager was difficult for Simon Moppett who often came home in the early hours of the morning. Eager to rectify the situation, Simon decided to start his own business and in February launched a London House franchise. Now he is able to spend quality time with his two-year-old son and wife and is on course for a first year turnover in the region of £30,000. 

'I had been a nightclub manager for 16 years,' reflects Simon. 'I really enjoyed the work because I was always on the go and it was a fun environment to work in. However, working split shifts became difficult when I married, because my priorities changed and spending time with my family came first. 

'As I had been in a position of authority for many years I did not want to work for someone else and could not face the structure of a nine-to-five routine. I was drawn to the idea of running my own business and knew the benefits of franchising - so purchased a copy of The Franchise Magazine for inspiration. An advert for commercial investigation franchise London House caught my eye immediately.' 

Established in 1995, London House provides a range of services to banks, law firms, other blue chip organisations and private individuals. Services vary from debt recovery and witness statements to missing persons, fraud investigation and pre-employment screening for drugs and alcohol. The role of the franchise owner is to collate the information requested by the clients and report back to them. 

'I had never done any work like this before,' continues Simon. 'So I knew I would find the work both challenging and stimulating especially as I would be offering clients a variety of financial and investigative services. I met London House founders Godfrey Lancashire and Brian Hughes at their head office and was overwhelmed with their honesty and knowledge of the business. Godfrey and Brian encouraged me to contact existing franchise owners, which I did and they too gave positive and honest feedback. Confident with my decision I went on to launch my franchise which covers Preston, Blackburn and Fylde.' 

As part of the franchise package Simon completed a two-week comprehensive training course conducted by Brian, who also went through the operations manual and gave him on-the-job training. 'I cannot fault the support,' says Simon. 'Someone is always at the end of the phone if I have a problem and I have made friends with several franchise owners. 

'As my own boss, working from home, I now have complete control over my work/life balance, which is great as it means if I want to take a day off I can. I love the fact that the harder I work and more I achieve now the bigger my rewards will be in the future. It is a great incentive. Right now my aim is to continue building up the business in my territory with the intent of taking on a second territory in the next couple of years.' 

Reported by Jess Sturman

London House [A - Z offices]

London House International has a selection of offices throughout the UK.

Contact details of each office can be viewed by clicking on Read more >>

Our Head Office is based in Milton Keynes.