The team at Commercial Domestic Investigations are always keeping up to date with the latest debt collection and business news from the UK and the rest of the world.
As the end of the year fast approaches, we wanted to take a look at the most important news stories and significant changes to come out of this year.
Credit Today reported that the Financial Conduct Authority (FCA) has found that every payday lender it reviewed suffered from “serious non-compliance” when it came to debt collection. This was bad news for the payday lending industry following on from the large fine Wonga landed itself with, after allegedly using debt collection letters from fake law firms.
Back in July we learned that HMRC last year applied to shut down 3,000 firms with unpaid tax bills. HMRC issued 3,000 winding up orders in 2014 and was successful in 1,816 cases, this is a year on year rise to 2015 of four per cent.
From July 31st many small businesses started to make large payments towards self-assessment accounts. This is now a crunch time for many of these businesses, especially those who are owed money on outstanding invoices and don’t have the knowledge or capacity to put proper debt collection procedures in place.
We were pleased to hear in August that the government revealed plans to secure a small business commissioner to tackle problems to do with late payment and other business related issues.
The Department of Business, Innovation and Skills revealed that the role would involve a ‘culture change’ in the way that smaller businesses handle issues with larger companies. Supply chain practices would come under scrutiny, and the new commissioner would help smaller companies with access to help, advice and conciliation services.
Back in September CDI were pleased to read about the release of the government backed Enterprise Bill. The Enterprise Bill is designed to drive growth in the economy and create jobs, one of the areas that the bill has focussed heavily on is the issue of late payments and debts which are stopping the growth of many small businesses.
The bill called for a clamp down on late payments and one of the methods for doing this was said to be the creation of a Small Business Commissioner who would help small firms handle disputes over late payment with larger companies. As of yet the creation is yet to be made.
New measures came into force from October 1 to help creditors who have lost out financially as a result of the improper conduct that occurs when a director is disqualified. The disqualified director in question can be required by the court to pay compensation. For creditors, financial redress is just one of the various ways in which the company director disqualification process is being strengthened.
Official quarter 3 figures revealed in November that the number of individual insolvencies increased nearly three percent to more than 19,000. The Insolvency Service’s latest statistics showed that 19,683 people became insolvent between July and September 2015 – which is a 2.8 percent rise on the previous three months but a decrease of 18.5 percent compared to the same period on 2014.
The services said this rise was driven by an increase in Individual Voluntary Arrangements (IVA’s), which increased more than nine percent on the previous quarter. However, they are still 18 percent lower than a year ago.
This month we discussed George Osborne’s Autumn Statement and looked into the impact any changes could have on SMEs. Overall, it seems that George Osborne’s latest Spending Review was a positive one for SMEs. The statement included extended business rate relief, new and expanded Enterprise Zones, and an apprenticeship levy that will address skills deficits while avoiding 98% of businesses.
About Commercial Domestic Investigations
Commercial Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
Commercial Domestic Investigations have recently featured in the press in The Guardian. To keep up to date with the latest debt collection news make sure to follow Commercial Domestic Investigations on Twitter and LinkedIn.
We now boast a national client base in excess of 30,000 companies. Commercial Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plus. Please contact us on 08444 159200 for more information.