Debt collection industry faces "perfect storm"

[huggy41]

very interesting read.

 

http://www.credittoday.co.uk/article/13991/online-news/debt-collection-industry-faces-perfect-storm

 

:sad::sad::sad: and i second his comments.

[sequenci]

Totally agree. The funny thing is that it is a very simply process to improve things significantly, and in fact there are agencies that have changed their approach and have seen a significant improvement in the amount of revenue they bring in.

 

I honestly believe I could spend just a day with any of their directors, explain a few simple changes that they could make and they would see a massive improvement if they were to implement them. In fact, I believe half of CAG could tell them.

[ScarletPimpernel]

I suspect that the current culture is deeply ingrained, though, and none will want to be the first to change to an ethical, compliant way of working.

[huggy41]

One survey respondent summed up the problem by saying: “Increasingly, there are more debt cases that cannot pay, rather than simply won’t pay.”

 

this is what the members of CAG have been saying for years but they just totally ingnored us and now they are having to back track and admit that they were wrong.

[sequenci]

The agencies really need to understand one fundamental point. And that is 'you reap what you sow'.

 

If they engage with their customers as a whole the customers will engage back.

 

Scarlet has hit the nail on the head.

[Bang!]

There is a recession in the UK. You cannot get blood from a stone. They are just stating the ble***** obvious!

[cerberusalert]

Neanderthals were a separate species from modern humans, but became extinct and were replaced by modern humans moving into their habitat.

[Fulhamboy]

The increase in stamp prices must have something to do with it. Are we now supposed to sympathize

with DCAs? The debts bought from creditors for a minimal fee must make them money. Its the debts they have to pursue on behalf of creditors that are the problem. What they will do in future is chase the larger debts , the ones with equity involved. not chase people who owe £10 to a catologue company.

A change in attitude from them, do not treat people like **** on the phone would be a start .

There is a recession on, as each day passes some one is made redundant some one is falling behind with payments. The longer the recession goes on the DCAs will become overwhelmed with debtors to chase. It could put smaller DCAs with limited resources out of business hopefully. rant over

[rhos123]

The increase in stamp prices must have something to do with it. Are we now supposed to sympathize

with DCAs? The debts bought from creditors for a minimal fee must make them money. Its the debts they have to pursue on behalf of creditors that are the problem. What they will do in future is chase the larger debts , the ones with equity involved. not chase people who owe £10 to a catologue company.

A change in attitude from them, do not treat people like **** on the phone would be a start .

There is a recession on, as each day passes some one is made redundant some one is falling behind with payments. The longer the recession goes on the DCAs will become overwhelmed with debtors to chase. It could put smaller DCAs with limited resources out of business hopefully. rant over

 

what! no more threatograms , pay now or else! happy days are coming:-D

[renegadeimp]

Of course the debts bought by DCA's make a profit. A huge profit.

 

The DCA pays around 7-15% of the actual debt amount. Then tries to chase the debtor for the full amount. In some cases, this can mean thousands of pounds in pure profit for the DCA. And for some reason debtors are very reluctant to stand up for their legal rights, then try to say how much they hate the DCA's, even though they refuse to do anything about it.

[cerberusalert]

They would get a better response if they included a s.a.e with their missives.

 

Personally I would only deal with them by email, much to their chagrin. When they complained I reminded them that if it was good enough for lawyers & the court system it's good enough for me.

[ScarletPimpernel]

Of course, if creditors engaged with their customers more positively, there'd be much less debt for the DCAs to collect, and much less business for the deeply unsavoury debt buyers.

 

The financial sector, of course, always wants to have its cake and eat it; it also has a short memory. Today's Times reports that the good old British Banker's Association is whining to the MOJ over the issue of some PPI claims companies misleading clients. The BBA does not appear to have found it ironic, given the way in which banks deceived and misled their customers when mid-selling PPI.

[sequenci]

Of course the debts bought by DCA's make a profit. A huge profit.

 

The DCA pays around 7-15% of the actual debt amount.

 

It depends on many factors but some debts are bought at a much higher percentage than that.

 

Regardless of percentages you are right, some DCAs do indeed make a fortune.

[sequenci]

Of course, if creditors engaged with their customers more positively, there'd be much less debt for the DCAs to collect, and much less business for the deeply unsavoury debt buyers.

 

The financial sector, of course, always wants to have its cake and eat it; it also has a short memory. Today's Times reports that the good old British Banker's Association is whining to the MOJ over the issue of some PPI claims companies misleading clients. The BBA does not appear to have found it ironic, given the way in which banks deceived and misled their customers when mid-selling PPI.

 

You've nailed it in one sentence.

[sillygirl1]

Instead of using outsourced agencies to deal with what may be an inherent operational problem many companies just 'pass the buck' for a quick fix solution.

 

I received a text message from a DCA today with a reference number, phoned them up and told them the phone no longer belonged to the person they wanted and refused security. I then put the number in the blocked call vault on my phone. I then got a normal call from them and blocked that too.

 

This 'auotmated' culture where debts are automatically passed on whether or not there is a problem is crazy, as are most 'automated' systems.

 

The companies need to realise that people are in dire straits and cannot afford to pay more than token payments to acknowledge debt, and when you are on basic JSA as your only income it is night on impossible to feed yourself and pay bills, let alone get printer ink and stamps for job hunting.

[Fulhamboy]

Salmon swimming upstream to spawn, bears at the waters edge ready to pounce. The relation ship between debtors and DCAs. Its the stigma of debt thats the problem. How many posts start, received letter in the post, rush to the phone DCA hears the pleading in your voice and you are hooked. What I dont understand is if you are on benefits or vulnerable and provide proof they still hassle you, shows how vindictive they are.

Berklycard phoned me from the Philippines the other day and wanted to know why my payment was late, treated me like a naughty schoolboy!

[Bang!]

TV Licensing used to send paid return envelopes with their accusations.

 

But shoving so much in the envelope that there was a charge to pay for delivery seemed to be the reason for their stopping.

 

Did you know you can fit an entire pair of underpants in a DL10 envelope?

[renegadeimp]

It depends on many factors but some debts are bought at a much higher percentage than that.

 

Regardless of percentages you are right, some DCAs do indeed make a fortune.

 

The larger debts are yes. However smaller debts that are £1-2k in amount rarely are.

[andydd]

TV Licensing used to send paid return envelopes with their accusations.

 

But shoving so much in the envelope that there was a charge to pay for delivery seemed to be the reason for their stopping.

 

Did you know you can fit an entire pair of underpants in a DL10 envelope?

 

[andydd]

No mention in the article that people are wising up, thanks to CAG and the like . The internet has made research possible and people are now more likley to be aware of their legal rights and even challange a DCA in court.

 

Andy

[Fulhamboy]

Once bitten twice shy , so you had your ears chewed off by a charming DCA at your expense ( your phone bill ) you soon wise up. Thank the heavens for this site.. As I posted earlier are we are supposed to sympathize with them ? Like fxxxx

[rhos123]

Once bitten twice shy , so you had your ears chewed off by a charming DCA at your expense ( your phone bill ) you soon wise up. Thank the heavens for this site.. As I posted earlier are we are supposed to sympathize with them ? Like fxxxx

 

DCAS are nothing but vultures in the human world, they like you to think its a CRIME to having debts. well IT IS NOT!!

Edited May 15, 2012 by rhos123

[Fulhamboy]

Slightly off message, with creditors at a drop of a hat, happy slapping every ones credit files with defaults ( try getting a mortgage) who will they have left to give credit to? A parasite killing its host

[sequenci]

DCAS are nothing but vultures in the humam world, they like you to think its a CRIME to having debts. well IT IS NOT!!

 

You see, I disagree. I think the answer is that some are. Some are perfectly reasonable. Although, sadly, most seem to fall into the first category.

[huggy41]

I have a nice letter to send to Halifax in the morning the very last one as because of the debt crises nor I or Halifax can waste money on postage so will only deal with them by email but i need to find out how much loss Halifax have at the moment so i can back up my stand on emails only.