CSA says Debt Collection and Debt Recovery Industry needs new rule book

The Debt Collection and Debt Recovery Trade body, the Credit Services Association (CSA) has called for the creation of a new ‘rule book’ in order to help the proposed Financial Conduct Authority (FCA) regulate debt collection agencies in the future.

Dr Roger Lucas, President of the CSA said “The Association has a highly successful and productive relationship with the OFT and there is a very real danger that in creating a new authority and a new regulatory framework, much of that good work will be wasted.”

The CSA President has cited that the success of any future ‘rule book’ is reliant on lessons already learned by the Office of Fair Trading (OFT) and a paper on reforming the consumer credit regime by HM Treasury/Department for Business Innovation and Skills (BIS) which requires much broader consultation.

“It is now widely recognised that many of the rules enshrined within the Consumer Credit Act (CCA06) are weighted towards the front end, and take little account of the issue of collections when a loan has gone sour…..New regulations must be informed, relevant and proportionate.”

Dr Lucas also suggests that the collections industry should be fully represented on the proposed FCA Board in order that that future decisions benefit from the widest range of views and expertise from the CSA members.

The CSA has also repeated a call to maintain the advantages of a voluntary code, which it describes as being preferred by governments since they are quickly adapted and are inexpensive on the public purse and to this end the CSA has taken part in several stakeholder discussions and seminars recently.

CCDR (Corporate Credit Debt Recovery Ltd) is a leading UK Debt Recovery specialist with international reach and a client base of SME’s and multinational organisations. Our services include:  Debt Recovery, Debt Mediation & Dispute Resolution, Business Reports and Debtor Tracing, Outsourced Credit Control and Corporate Legal Services.