News & Industry updates
'Markets brace for Bank of England interest rate decision'
The Bank of England has raised its inflation forecast again, and now predicts it will hit 11% this autumn, when energy bills rise.
It had previously estimated that consumer price inflation would hit 10% – far over its 2% target. This new forecast shows that households face even more pain, with real wages already lagging inflation.
With inflation on the rise, you will need professional debt collection advice to help navigate unpaid invoices during times of high inflation. Call us today to discuss your debt recovery requirements.
'Why energy bills are increasing'
The UK’s energy price cap, the maximum amount a utility company can charge an average customer per year for the amount of electricity and gas they use, has been reviewed and risen by 54 per cent, meaning a steep rise in household bills this spring.
As of 1 April 2022, the cap rose from £1,277 to £1,971 for a household on average usage. That means a £693 per year increase for the average
In times of challenging market conditions, a firm but fair debt collection approach is required. We can tailor a debt recovery process for your exact needs, utilising years of debt collection and credit control experience.
'Ofgem energy price cap to be updated every three months ahead of ‘challenging winter’
Ofgem has warned of a "very challenging winter" for UK households as it confirmed changes to the price cap review process that will allow energy bills go up and down more quickly.
The regulator currently updates its price cap twice a year – in April and October — but it will now review the price cap four times a year instead – in January, April, July and October
With an anticipated difficult economy by late 2022, now is the time to make debt collection preparations and ensure you are doing everything possible to recover debt, before further economical issues worsen or hamper your cashflow
Regulation & Rulings
'FCA tells lenders to support consumers struggling with the cost of living'
The Financial Conduct Authority (FCA) is today writing to more than 3,500 lenders to remind them of the standards they should meet as consumers across the country are affected by the rising cost of living.
With household bills expected to continue to rise into the autumn, it is important that firms act now to make sure borrowers struggling with payments and customers in vulnerable circumstances can access the help they need.
As a profession debt collection firm, we adhere to the FCA rules and guidelines and believe that those in vulnerable situations should be treated appropriately and with respect. If you are unsure of your position when dealing with debt related matters and vulnerability, we can give debt collection recommendations to help you remain compliant and reduce the risk of bad press.
'Trade body raises concerns over targets set for free-to-client debt advice'
Credit Services Association (CSA) publication
The Credit Services Association (CSA), the UK trade body for debt collection and debt purchase, has released a new report exploring the provision of debt advice for those facing financial difficulties and in need of support.
The report found that although significantly increased funding had resulted in increased advice sessions, that was not reflected in the wider landscape.
Guidance and clarity are key topics within the debt collection industry. We as professional debt collectors ensure all initial correspondence to late payers provides information on managing debt situations and we offer further information on support via our debt collection website.