Here at Commercial Domestic Investigations we’re always looking to share with you any news regarding debt collection. We understand that successful debt collection can have an incredible improvement on your cash flow as an SME owner.
This week it was revealed that more than half (52%) of all debt collection agencies that applied for full regularity authorisation have had applications accepted. This is a significant increase according to the Credit Services Association (CSA).
As part of the CSA’s Data Gathering Initiative (DGI), statistics were released regarding the debt collection agencies that submitted regulatory business plans to the Financial Conduct Authority. Of the 145 agencies that did this, 76 have now been fully authorised. The remaining agencies are believed to still be at the interim permission stage.
John Ricketts, Vice President of the CSA, compiled this data and believes the figures compare favourably with other parts of the wider credit industry.
“The success of members to date reflects the preparedness and professionalism of those in the sector,” Ricketts explained.
“We know from other DGI research that agencies have been investing significantly in compliance and in preparing for the obligations placed upon them by a new regulator, and it appears that this investment is paying off.”
The statistics however do reveal some anomalies. Out of the CSA’s 271 full, foundation and affiliate members 76 per cent (207) originally registered for interim permission with the FCA in April 2014, and 24 per cent (64) did not.
However, of those 207 members that did not register for interim permission, 11 subsequently cancelled their interim permission and a further 51 allowed their interim permission to lapse. The remaining 146 members continue to be regulated by the FCA.
Ricketts believed there could be a number of reasons for this: “Given the diversity within our membership, some will have found that FCA authorisation was not required because of their particular business model, perhaps because they are not collecting financial services debt or are only engaged in commercial debt collection,” he continued.
“Others will not have qualified for authorisation since they are acting as an appointed representative, rather than working direct, or have since chosen to become an appointed representative rather than be directly authorised themselves.”
The CSA added that the pace of authorisations appears to have accelerated in the first quarter of 2016.
Peace of mind
If you need any assistance in chasing unpaid invoices, it’s incredibly important to make sure you use a debt collection agency that is fully regulated by the Financial Conduct Authority, such as Commercial Domestic Investigations.
Contact us for an informal chat about your unpaid invoice and how we can help you. Our team have the experience and knowledge to help your company recover money owed. Working with our debt collection team gives business owners the peace of mind needed to move forward and get past negative cash flow.
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, LinkedIn and Google+.
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.