ARTICLE...
Tessera Viewpoint
May I take this opportunity to wish you all a Happy New Year and welcome to 2010. Let's hope for an easier and more lucrative year for the sector than 2009.
We have seen a number of positive developments since my last column and to start with, some good news – many of you will be aware our industry has seen success with the Limitations Act.
As a draft, the Bill proposed reforms that would reduce the limitation period from six years to three. The Association, with member input and involvement, lobbied successfully that this could seriously impact on debtors, where any reduction in limitations would see creditors wanting to recover debt more quickly rather than negotiate longer repayment plans, to the detriment of the debtor. The impact on buyers could also have been severe, and we were very relieved to see that the proposal was dropped.
We are also continuing our excellent relations with the OFT regarding DBSG matters, and at a recent meeting in London one of the main discussion points was that the review of the debt collection guidance will now not be released until around July 2010. The OFT have also confirmed that they will hold an informal consultation with all key stakeholders before the review is released.
I am sure our good relations with key regulators will continue into 2010 and we are starting to make good headway with our lobbying efforts. I truly believe that our considerations are now being taken into account, and there is now an understanding of the benefits we bring to the economy.
We will continue to monitor and widely scope the compliance issues throughout 2010, and if any members would like to become involved with lobbying activity please contact Claire Aynsley on Claire@csa-uk.com
The DBSG Committee is also working hard, with the first DBSG Data Quality Working Party Meeting taking place on 9th December. The meeting was arranged to discuss ways in which data quality could be improved across the credit cycle, in order to reduce the number of mistraces which lead to negative media attention and increased complaints, and to ensure that any regulation affecting debt sale is proportionate, fair and reasonable. Issues were identified where creditors, CRAs and buyers can help improve data quality, and in future editions of the newsletter we will keep you informed and up-to-date on all of these areas and also any issues/feedback from these meetings.
We also saw the DBSG Governance Working Party meeting take place on 12th November, where the main topic up for discussion was the possibility of "Seller Audits". It is believed that seller audits would benefit the DBSG and its membership but we would like your opinion – at this year's Half Yearly Meeting we are holding a debate surrounding this particular issue and looking at the pros and cons – make sure you don't miss out!
In my opinion, economic conditions have now begun to ease for buyers and sellers alike, and a return to larger volumes of debt sale is inevitable in 2010 as the price gaps seen in 2008-9 start to narrow. Funding for deals and new entrants is out there, albeit on relatively demanding terms, so for good players with strong management teams, a good track record and a clean compliance history, this year could be one of healthy deal flow at attainable prices. This will hopefully ease creditors' concerns over the volumes of new debt coming through into their collections and recoveries departments, and the move to innovative deal structures should mean that sales become more frequent this year.
And finally, the members-only Half Yearly Meeting will soon be upon us, and is being held at the Leicester Marriott on 9th and 10th February. Places are filling fast, and with the many debates taking place as well as presentations from industry experts, this is certainly not a meeting to miss!
Leigh Berkley,
Chief Esecutive, Tessera
Chairman, DBSG
