DBSG Annual Roundup

The twelve months since my last annual round up of DBSG activity have been dominated by legislation and regulation. The new CCA06 regime of statements and notices came into force on 1st October 2008, and of course the OFT gained their new licensing powers in April 2008. These two issues alone would have kept us all fairly busy, but the addition of intense media scrutiny, the proposed removal of access to the edited electoral role, the forthcoming credit white paper and consumer credit directive, not to mention a possible reduction in the statues of limitation to three years, have all contributed to make this a year of unparalleled activity, both within the DBSG membership and at Head Office. Even in a benign financial environment, all of these issues would have made our times "interesting", but throw in a global financial crisis and the resulting disruptions to debt sale pricing and capital availability, and it all adds up to the perfect storm.

Against this unprecedented background, the DBSG has been surprisingly productive over the last year. Starting with a focus meeting in May 2008 to discuss the CCA06 issues and the now-infamous OFT press release last April, we quickly started consultation with BERR to lobby for concessions in respect of sending statements to known gone aways, IVAs and deceased debtors. This eventually lead to an options paper being produced last autumn, followed by a policy statement saying that we would still need to send all the statements out, but that some of the financial information could be abridged. We still do not know what form this abridged information will take, however it now appears that the OFT may well decide not take licensing action against creditors who fail to send statements to known gone aways, provided reasonable steps are taken to trace the consumer first. The DBSG CCA06 Compliance Working Party, Claire Aynsley and Robert Bell are doing a sterling job on these onerous provisions, and we will keep you up to date through the coming months.

As to the new OFT licensing powers, the initial flurry of published requirements against license holders has started to abate, both in number and impact, and the OFT now feel that they know our sector much better than before. The focus is now changing to one of data accuracy, and quite right too. The pressing need to improve the quality of data passed between creditors, CRAs, buyers and debt collectors is now recognised by all parties, and DBSG has participated in meetings with the CRAs, the OFT and ICO to explore the most effective ways of improving data accuracy. In addition, Andrew Bartle has worked with the CRAs and represents DBSG on SCOR to promote data accuracy and to discuss pre-purchase access to white data for buyers.

Thanks to Geoff Lawler and the Public Affairs Company, BERR (now BIS) engagement has continued apace and, in February, Godders, Kurt and I visited Gareth Thomas and Opposition MPs, resulting in the 30-day breathing space when an accredited advisor is first appointed by a debtor, along with additional consumer information from the CSA, and discussions about buyers and DCAs appointing Board-level managers responsible for compliance. We are also now hopeful that access to the full electoral register is a realistic goal for buyers and collectors, thanks to some very effective lobbying this year by the CSA.

In addition to our governmental involvement, the year has seen the first two DBSG Sellers' Lunches. This forum has provided a unique opportunity for sellers to get together informally, and the demand for places has been followed up with some very good feedback from sellers. Topics discussed have included the economic environment, CCA06 compliance, and structures by which debt sale can be maintained at a time of lowering prices and capital constrictions among buyers. The next Sellers' Lunch will be held in October and places are limited, so please book early!

Meanwhile, Kurt has spearheaded the CSA/DBSG Collectability Index, and we now have more than 12 months' solid data on settlements and instalment payments from six major buyers. Although the recent stats have been adversely affected by the credit crunch, the Index is now well respected and publicised quarterly in the trade press. Sean Feast at AGA has ensured we continue to receive thousands of free column inches, and has coordinated the production of industry fact sheets for the consumer, the media and politicians, highlighting the positive initiatives in which we're all involved.

The year ahead holds some significant challenges, but also some fascinating opportunities to build on our recent success. The DBSG is in a unique position to represent all those involved in debt sale, and to ensure we remain as the voice of the industry, the priorities for DBSG over the coming year will be:

1. To continue our engagement with Government and the Regulators, to ensure debt sale is better understood and taken into account in new regulation and legislation.
2. To remain on the front foot when dealing with the media and consumer groups, by providing useful and constructive PR whenever debt sale is discussed.
3. To work together within DBSG to promote best practice, data accuracy and compliance, including new guidance for the debt sale process and subsequent collection activity, new precedent agreements, and continued liaison with all stakeholders in debt sale in the UK and overseas.

I can't finish this roundup without mentioning some of the changes ahead. Kurt has decided to leave Head Office next April, and his legacy is one of which he can truly be proud. As well as growing the CSA into the professional, well organised machine it is today, it was only thanks to Kurt calling interested parties together around a very large table some years ago, that the DBSG was formed. In twelve months time, as I write my final report as DBSG Chair, we will have a new CSA Chief Executive in Newcastle, a new CSA President in Roger Lucas after Najib Nathoo steps down from a very effective stint, new members of staff in Newcastle, and a re-energised DBSG Governing Committee to face the challenges of 2010 and beyond. In the meantime, I look forward to seeing you at the forthcoming annual conference in Brighton this September.

Leigh Berkley
Chairman, DBSG

Original article courtesy of DBSG. For further information visit www.dbsg-uk.com/dbsg

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