Legislation – how can you legislate for it!
18th November 2008
Two pieces of legislation, one of which is in force and one under review, seem to offer no assistance at all to a debt collection sector already struggling to cope with record amounts of debt, both consumer and commercial.
The plans to cut the period of statutory limitation for civil debt from six years to three will undoubtedly have a major impact on the debt collection industry in general and the debt purchase sector in particular.
Professional involved in these sectors and urged to make their feelings on the topic known by sending their comments to the Ministry of Justice.
Secondly, the implementation of the Consumer Credit Act 2006 includes the requirement to provide debtors with much more information about their accounts, all at the cost of the debt collector and with no apparent positive impact on collectability.
Importantly, the CCA also places a requirement on firms to send notices to ‘gone away’ debtors – even when they know the debtor in questions does not live there!
Not only does this appear ludicrous, costly and ‘un-green’ it could (according to Ray Watson, Director of Consumer Credit at the Office of Fair Trading) encourage identity theft.
NB: Users of DebtimeSQL, the specialist debt recovery system developed and supplied by Linetime Limited receive all system changes brought about by mandatory regulation under their annual product support and maintenance contract, at no additional charge.
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