NEWS...
CSA Launches Trace Guidelines
The CSA Code of Practice is renowned throughout the Credit Servicing Industry as 'the' Best Practice document for debt collection practices, and now the CSA Code is even stronger.
Launched at the CSA & DBSG Annual Conference, the Code now features debt collection practices, tracing activity and debt purchase, making it the 'Industry' Code of Practice.
A new feature to the Code is the Tracing Guidelines which shows agencies, consumers and regulators what the Association expects of its members when carrying out their tracing activity. Backing up this section of the Code of Practice is a detailed Best Practice Guidance document, which gives an in-depth overview of how tracing should be conducted in today's environment.
Working in association with the Information Commissioners Office, the CSA has produced detailed Guidance for Trace Activity, which was officially launched alongside the updated CSA Code of Practice at the CSA & DBSG Annual Conference.
Tracing is essential to today's credit industry and clients are looking to trace 'gone-away' debtors more than ever in light of the credit crunch.
Absconded debtors are on the increase - from 3 million traces carried out by CSA Members in 2006 to in excess of 8 million in 2007!
Whilst there may be some debtors that reasonably 'forget' to advise their creditors of a relocation or change in circumstance, the vast majority of absconded debtors have done so with the intention of deliberately attempting to evade their financial responsibilities. This leaves behind a trail of devastation, especially to those innocent individuals who either move into a property formerly owned or rented by an absconder, or whose details have been used fraudulently to obtain credit.
Instances of 'mis-trace' have received media attention of late, and in true 'Watchdog' fashion, the attention has not been good! However, despite what these 'entertainment' programmes may tell us, the days of "blagging" information out of poor unsuspecting individuals is rapidly disappearing, and the Association is looking to stamp it out altogether with its Trace Guidelines.
The guidance is aimed to develop and improve practices within the trace industry and increase awareness as to the importance of this particular area of the Credit Servicing Industry. The Guidance details what is required of a tracing agent when carrying out their legitimate tracing activity to locate a subject and includes information on why a trace is needed, how tracing is governed and the different methods of tracing.
Focusing heavily on the Data Protection Act 1998, the guidance explains how personal data can be sourced, using that personal information lawfully and keeping records accurate.
And, whilst the Office of Fair Trading do not regulate tracing activity, when tracing for the purposes of debt collection, the OFT Debt Collection Guidance should be considered, and the Trace Guidance details the specific areas within the OFT's Guidance that is of relevance.
Specifically produced for the benefit of CSA and DBSG Members, the Trace Guidance can be found on the Members Only sections of both CSA and DBSG websites, as well as on request from Head Office. All members will also be sent their own copy to keep with all other Best Practice Guidance documents prepared by the Association.
If you require further copies please contact Claire Aynsley, Head of Membership & Compliance at claire@csa-uk.com or 0191 2718043.
Original article courtesy of DBSG. For further information visit www.dbsg-uk.com.
