ARTICLE...
The New Face of the Industry
The credit industry is undergoing a raft of wholesale changes – with the CSA and DBSG leading the way, thanks to the backing of their members.
From fee hikes and accreditation initiatives through to kitemark schemes and ways of best representing the needs of the industry to the widest possible audience, the boards of both the CSA and the DBSG are working hard to raise the profile – and the standing – of their members work.
First on the list was the price hike for CSA membership fees. Despite them not increasing for around 10 years, a very small minority still bemoaned the increase, questioning what the trade body does for the money. This confused the CSA's chief executive, Peter Wallwork: "I spoke to members before and after the decision and most were only surprised we hadn't done it sooner. Perhaps our mistake was failing to raise fees for such a long period."
In fact, the CSA has considered numerous other methods of generating income. However the board feared it would be accused of not doing enough for the industry and spending too much time chasing funds.
And what are the funds for? They're going to be used to offer more support to members – with smaller companies getting the help they need to find new business, while larger companies will benefit from further assistance in maintaining their compliance obligations.
The funds also go to help companies that turn to the CSA following a serious complaint or an OFT investigation. Peter likens it to getting a great insurance policy: "You only know how good it is when you claim."
But of course the CSA's primary purpose is lobbying: "We have many meetings with government and regulators. We get to know ministers and officials, and build relationships with them. This doesn't grab the headlines, but contributes a huge amount to the industry over time."
And it doesn't end there. Representatives from both the CSA and DBSG are working to improve the industry.
Current CSA President, Dr Roger Lucas, is leading by example and is championing a new scheme – the Collector Accreditation Initiative – which is looking to reduce inefficiency and confusion within the industry.
Roger explained: "The real benefit is taking a lead in demonstrating to the wider audience that there is already a high standard of compliance in our collections industry and that where there are gaps in knowledge, this can be easily identified against the benchmark that we will set.
"At this early stage we are keen to reassure members of our broad intent around standards, and we will define and set those standard in full consultation with members, as well as industry stakeholders.
"We'll need to ensure that there is a cost model which is achievable both in the development and ongoing maintenance phases of the project."
And Sara de Tute, the current vice president, is also fully prepared to take over Dr Lucas' efforts, when she takes over the role of president in September 2011.
Elsewhere, the CSA is aiming to persuade members to share data on collection rates – but progress has been very slow.
Peter Wallwork explained: "I didn't realise how tough it would be to get people to give us their data. I thought it was a no-brainer. Their main concern is that their competitors, sitting on the board, will see all their data. It is very difficult to get enough statistics.
"But we don't want complicated information, just the number of cases, their value and so on. It needs to be hard-hitting and easy to understand, so that we can use it when speaking to government ministers. Our information is a little too anecdotal, and it feels like we have our hands tied behind our back."
However, there may be a glimmer of hope on this issue. The CSA balloted members at the Annual Conference on whether data submission should be compulsory and won a near-unanimous mandate to explore the possibilities further.
This will be one of the many things the CSA discusses in further detail in its next half-yearly meeting in February 2011.
Original article courtesy of Credit Today. For further information visit www.credittoday.co.uk
