NEWS...
Plea for Data as Industry Stabilises
The CSA and DBSG have reported that customer payments to debt collection agencies have stabilised this year.
The association's 'collectability index' provides an indication of both debtor ability and willingness to pay by measuring the full settlements and payment plans agreed with the industry's biggest collection companies.
The index of instalments and the index of settlements stabilised in the first two quarters of 2009, despite a continuous decline in 2008.
But the CSA doesn't want the industry to rest on its laurels. It has appealed to members to share their data on collections activity as only a handful of the biggest players have contributed so far.
Tessera's Leigh Berkley, chairman of the DBSG, explained: "Politicians and te media want the statistics. We need these numbers."
He added that the DBSG is likely to appoint an external provider to reassure members over issues of confidentiality.
"We're going to go for external provision so creditors and debt purchasers can trust the information will be collated on a fully confidential basis."
we need this to get the industry data and statistics we need. They're vital to our manifesto commitments regarding Public Affairs and Public Relations. Whenever we approach government, regulators or the media we need reliable, recent figures we can rely on, to press home our case and to throw light on the good work of our industry."
Kurt Obermaier, the CSA's chief executive, suggested that the figures could highlight a bottoming out on consumers' ability to pay.
"These are early indicators though and no firm conclusion can be reached until quarters three and four – maybe even 2010."
Meanwhile, the proportion of settlements has dropped.
An average of 33% of consumers were able or willing to settle their debts in full in the first two quarters of 2008, compared with just 25% during the same period in 2009.
Original article courtesy of Credit Today.
