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Brief Market Outlook for the Credit Industry

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To accurately assess the outlook for the credit industry, in particular the debt recovery market, it is essential to look at the sector from two perspectives. Both market compwescotetition and the global economy are primary factors in how debt recovery is going to proceed in the future. Not only does the UK’s economy as a whole play a big part in the performance of a debt agency, but so too does the performance of that company’s competitors.

The market as a whole is worth approximately £500 million, a figure that has not changed significantly since 2007, despite what was occurring throughout the financial world since that year. Competition is rife in the debt recovery industry, not only do large financial institutions and high street banks have their own departments that handle debt recovery, but the market is split between a few big name companies such as Wescot and many more companies that own a small percentage of the market share. One reason as to why there are so many debt recovery companies is that if collection rates are high and the business is efficient, there is more opportunity for a variety of aspects. Greater competition for example, has forced companies to present clients with greater price comparisons.

Looking more broadly, debt recovery companies have had to overcome a tumultuous economy, which has put pressure on their operations. Prior to 2007, there were a large number of personal loans being issued which naturally means a higher frequency of defaults; a stronger economy also provided customers with the means to eventually repay these debts. After the credit crunch however, consumers have been slow to borrow money and with more economic pressure on the individual, those who have defaulted are struggling to return their debt. This means that the industry as a whole has had to drastically change their strategies to remain abreast of the new difficulties.

For companies like Wescot, the outlook for the industry still remains positive. The fact that the market’s worth as a whole has not changed in seven years despite the banking crisis is testament to this. The debt recovery industry’s capability to adapt their methods quickly has ensured its security for the time being.

Changes in compliance standards

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The debt recovery industry has experienced significant change in recent times as many debt recovery agencies look to combat the economic downturn and maintain high collection rates. A significant change is in relation to compliance standards and the associated improvement in relationships between agencies and those individuals wescotinvolved in the recovery process. The financial services sector has suffered from decreasing levels of consumer confidence in recent times due to the current financial climate and the banking crisis. In order to rebuild trusting relationships with consumers, the industry has attempted to improve how debt collection agencies contact individuals, how they communicate with them and also how they recover the debt itself.

Compliance covers a whole host of aspects within all formats of business. It concerns the compliance of each company with regards to meeting regulatory requirements. Regular assessments and checks take place to ensure that companies are complying with industry standards and acting in a professional and honest manner at all times. It is hoped that changes in compliance standards will help to restore consumer confidence in the financial services sector.

Historically, debt recovery agencies have been somewhat aggressive in their pursuit of debt. Excessive phone calls, home visits and aggressive letters were prevalent with regards to the debt recovery process. Changes in the rules and regulations and increased levels of compliance by debt recovery agencies such as Wescot has resulted in improved relationships and increased communication quality between both parties.

The handover of responsibility from the Office of Fair Trading to the Financial Conduct Authority has had a big impact on regulations within the industry but credit must also be given to debt recovery agencies for meeting compliance standards.

Debt recovery agencies such as Wescot, one of the largest debt recovery agencies in the United Kingdom, have embraced the concept of compliance. The company see the financial outlay associated with complying with more stringent industry regulations as an investment and not a cost. Wescot understand the need to improve relationships with all concerned and restore some form of confidence in the financial services sector. Agents at debt recovery agencies are spending increased amounts of time communicating with individuals, assessing their situations and advising of the options available. Customers are now receiving high quality advice and guidance in relation to repaying the debt owed which has resulted in increased completion rates in relation to repayment plans.

The importance of improving consumer confidence

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Wescot Understanding what contributes to sustained economic growth is extremely important in relation to making the correct decisions to bring about such change. Immediately following the credit crunch, and with families throughout the country struggling financially, the Bank of England introduced extremely low interest ways in the hope of cushioning the blow of the tough financial times. The interest rates remained low for a substantial period of time which did indeed improve the financial situations of families throughout the United Kingdom. Following these cuts to interest rates in 2008 it was reported that families had more money to spend after they had paid household bills. Annual discretionary income trackers assess how much disposable income a family has after the deduction of the cost of living. These trackers had shown that following the drastic reduction in interest rates, a typical families disposable income increased from approximately £139 to £165. This increase lasted for roughly two years after the interest rates were lowered and brought a stability to the economy in the United Kingdom.

The improved stability of the market would not last. In 2010, the amount of disposable income that a family had to spend began to steadily decrease. This was due to a number of factors such as increases in the cost of living, rising prices for consumer goods and low levels of wage growth. Despite the cost of living increasing significantly over a five year period, the average household income only increased moderately therefore having a negative impact on a families disposable income levels.

Disposable or discretionary income plays a hugely significant role in the stability and improvement of the economy. It has been concluded that in order to strengthen the economy in the United Kingdom, consumer confidence must be restored. Consumer confidence is vital in terms of the amount of money a family is prepared to spend each and every week. Should a family have a low level of disposable or discretionary income, the confidence of that family to go and spend the money will invariably be low. This results in a sterile market place and problems for businesses and individuals alike as families tighten their purse strings and refuse to spend on items that they deem to be unnecessary.

Debt collection agencies such as Wescot are a good indicator as to how the economy is performing. Recent industry reports suggest that companies such as Wescot have reported that levels of unsecured debt had dropped significantly since 2005 as families attempt to tighten their budget in the wake of the credit crunch.

Wescot Minimise Mis-Tracing through Data Strategies

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Dramatic changes in mortgage lending in the UK, such as the loss of 110% of value loans and the reduction in availability of interest only packages has led to an increasing number of people either renting property or living at home or with other family members for longer periods of time. This in turn has created a situation where tracing in the debt collection industry has also changed, with true goneaways becoming harder to spot than ever before. Members of the Credit Service Association are undertaking huge volumes of tracing, with some form of data cleansing occurring at the point of load across some 70% of all wescotnew businesses. When compared to the figure of just 40% as recently as 2007 this shows a significant increase.

Throughout the tracing market, there have originated a number of new products offering smart-data tracing solutions, yet these fall into the category of indicative lead generators and there can be seen a direct correlation between the increase in the use of these and the growing number of mis-traces. As the regulation of credit services and debt collection moves this year to the Financial Conduct Authority from the Office of Fair Trading, mis-tracing will become a key area of focus. Where poor solutions are allowed to enter the product delivery chain, those who hold approved-person positions can now expect to be held accountable. The CSA is now seeking the promotion of higher standards across the industry.

Wescot is the largest debt collecting agency in the UK today, servicing over five million client accounts annually and employing more than 650 staff. The aim of Wescot is to deliver favourable outcomes, creating arrangements between individuals in debt and clients which take circumstances into account and to provide each client with the products which suit their individual needs whilst simultaneously protecting their brand and their image. There are strict compliance standards in place when it comes to the ethical collection of debt, many of which Wescot helped to evolve and implement as market leaders. The compliance standards in place far surpass others in the industry and have been recognised by both Trading Standards and the Lending Standards Board.

Compliance for Complete Consumer Confidence

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When talking about businesses in the financial services sector, the term compliance has two meanings. In the first instance, it refers to a company complying with rules which have been imposed by an external organisation, which could be the government or a regulatory body. In the second instance, compliance refers to obeying the rules and sticking to the systems imposed internally which contribute towards compliance with external regulations. The main regulatory body monitoring compliance within the financial services sector changed in April 2014, from the Office of Fair Trading to the Financial Conduct Authority. This brings with it numerous changes in terms of compliance which financial services businesses now have to adapt to.

There are five keywescot functions which are performed by a compliance department – identification, prevention, monitoring/detection, resolution and advisory. A compliance officer will initially identify any risks posed to a business or organisation, then create and implement systems and controls which protect against those identified risks. These controls are then constantly monitored and their effectiveness reported on. A compliance officer is on hand to resolve any difficulties with compliance as and when they arise and to offer advice to the business or organisation on rules and controls. Compliance is vital for complete customer confidence, helping to build up trust and improve client relationships through the consistent delivery of appropriate customer outcomes. Internal compliance systems are usually evolved through conversations with customers alongside adherence to external regulations.

As one of the largest agencies for debt collection in the UK, Wescot is by no means unaware of the changes coming in. In terms of debt recovery, the compliance standards have been evolving for several years now, placing more focus on Treating Customers Fairly. Customers today are often surprised by the approach of Wescot, which places far more emphasis on reaching a mutually beneficial solution to debt rather than demanding pre-determined repayment amounts. As an ethical debt collection agency, Wescot has long been developing standards of compliance which are unsurpassed within the industry, leading the way for others and in some cases actually helping to shape the new government regulations.

Wescot are Dedicated to Customer Service by Sponsoring CCR Interactive

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The team at Wescot Credit Services are hoping to learn new ways to improve their services for customers as well as promote general industry excellence by sponsoring the CCR Interactive one day event and Credit Excellence Awards.

CCR Interactive is a one day credit industry conference event that includes the Credit Excellence Awards and the Awards Dinner. As a popular event and with a highly regarded sponsor like Wescot Credit Services, the CCR Interactive event is set to host a high calibre of speakers and delegates who can lead interesting and informative debate. Paul Jenkins, Chief Officer of Wescot, has expressed the value of expert delegates discussing new approaches to industry standards. He explained how, during a period of unprecedented uncertainty and change within the credit industry, it is essential that there is strong leadership from high calibre speakers who can promote the values of ethical practice. The team and Wescot Credit Services are looking forward to learning many new ideas from the discussions raised at the CCR Interactive event.

Wescot The CCR Interactive event is good news for customers as the event will be encouraging businesses to strive towards fairer practices. The Credit Excellence Awards will be rewarding companies with the best business practices and holding them up as examples to follow. The Awards Dinner will then provide a greater opportunity for speakers to raise issues and for delegates mingle and debate ideas.

For customers, Wescot Credit Services’ sponsoring of the CCR Interactive event represents their continuing dedication to better business ethics. As debt collection can be a sensitive and complex issue in which companies need to deal carefully with all parties concerned whilst diligently collecting on all debts owed. As sponsors Wescot can encourage a positive agenda and lead the discussion in how to promote fair customer treatment.

Wescot Credit Services is one of the UK’s leading debt collection companies. Over ten years of trading Wescot have learnt the importance of treating all clients fairly in order secure a positive outcome in all debt collection situations. By constantly striving for customer fairness Wescot has become one of the largest agencies in Britain. Wescot Credit Services employ over 650 members of staff and have offices in Glasgow, Hull and Saltcoats. Over 5 million clients a year trust the reliability of the Wescot agency.

Wescot Set to Sponsor CCR Interactive and the Credit Excellence Awards

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Wescot The CCR Interactive is a one day event which includes the Credit Excellence Awards and Awards Dinner. CCR Interactive is an event held to celebrate excellence in the credit industry. The event is run organised by the publishers of CCR, CCR International and CCR Public Sector, all highly regarded industry journals. CCR Interactive has recently announced the new sponsor for their event will be Wescot Credit Services.

Wescot Credit Services specialise in debt recovery by practicing both extreme diligence on behalf of their clients as well as a total dedication to treating customers fairly, making sure all parties are satisfied with the outcome of a debt situation. Wescot is one of the largest firms of its type in the country; they employ over 650 staff in offices ranging across Glasgow, Hull and Saltcoats who serve over 5 million account holders every year.

Wescot are committed to sponsoring the CCR Interactive event in order to help promote the highest possible industry standards, fairness and the exchange of ideas between leading companies. Chief Officer of Wescot Credit Services Paul Jenkins explained how valuable they themselves had found past CCR Interactive events as well as how important it is for companies to take accountability for encouraging thought provoking debate.

Paul Jenkins of Wescot continued to explain how, during a period of unprecedented change and uncertainty across the credit industry; it is more important than ever to sponsor and promote events like CCR Interactive. By setting an agenda that will attract high calibre speakers, the team at Wescot hope to enjoy the discussion of genuine industry experts who can promote the value of business ethics and encourage greater industry standards. Although Wescot Credit Services are already dedicated to treating customers fairly, they always strive to improve their customer services.

The organisers of CCR Interactive have spoken about how pleased they are to enjoy the sponsorship of Wescot Credit Services. In order attract the best possible speakers and have the greatest impact it is important for the event to be represented by a reputable sponsor. As a major company, Wescot perfectly represent the standards of excellence and dedications to fair customer treatment that CCR Interactive and the Credit Excellence Awards stand for.

Wescot are looking forward to a productive day of knowledge and networking.

Wescot | What to Expect When Dealing with a Debt Collection Agency

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Generally, if you fail to make the payments on your debt or if you ignore the phone calls and letters sent to you by your creditor, it’s possible that your debt may be handed over to a debt collection agency. Your creditor may have enlisted the help of the agency to recover your debt or they may have sold them your debt, in which case you would owe the agency rather than your original creditor.

Wescot Credit ServicesIf you receive a letter from a debt collection agency, it’s important not to panic. Many collection agencies, such as Wescot, have strict codes of conduct and compliance regulations, so you can expect the agency to deal with you professionally.

It’s important not to ignore correspondence from a debt collection agency. While it may seem tempting to bury your head in the sand, unless you literally have no funds or are planning to file for bankruptcy, it’s advised to cooperate with the collection agency as much as possible. Usually, the longer you delay sorting the issue out, the worse it will become. Ultimately, if you do not pay the debt collection it can end up on your credit report which will detrimentally affect your ability to get credit in the future.

Don’t feel like you can’t negotiate with the debt collection agency. It’s often worth seeing if you can agree on an affordable repayment plan or even reduce the balance of the debt if you are really struggling.

Debt collection agencies will generally contact you by letter or by phone. If you would prefer just to be contacted by letter then you can request this. Many people find this allows them to document their correspondence with the agency better. A debt collection agency may also visit your house but only if there is no other way to contact you. It’s important to remember that a collection agency does not have the same power as a bailiff so you do not need to worry about having your personal effects repossessed at this stage. This can only happen following a court order or if you have an unpaid council tax bill.

Despite what you might think, dealing with a debt collection agency does not have to be scary or unpleasant. While you should simply ignore a letter from a debt collection agency, it’s worth making sure you understand what they are asking you to do before taking any action.