Civil Enforcement Changes - 6 months on Paul Sharpe Sales and - - PowerPoint PPT Presentation

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

Civil Enforcement Changes

• 6 months on

Paul Sharpe Sales and Marketing Director Equita Limited

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

The Agenda

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

The Media

Crackdown to stop bailiffs using aggressive tactics BBC TV The new laws include a ban on bailiffs entering homes at night and from using physical force against debtors. Bailiffs will also be prevented from entering homes when only children are present, and from taking household essentials such as washing machines. Citizens' Advice Bureau said the rules needed to go further, and called for greater accountability in the industry Bailiff Powers in England and Wales cut under new rules - Guardian Restrictions on entering homes and seizing property are praised by campaigners who say industry is rife with abuse

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

The Challenges

• Transition arrangements clarified 7 days before go live date
• I.T. Changes still being worked on day before go live
• Council requirements during compliance stage!!!
• Council’s trying to interfere with process
• Training of Enforcement Agents without any formal training material
• Communicating changes to the customer
• Huge drop in revenue for 1st 6 weeks

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

Key areas of impact

Compliance/Enforcement

Council Tax

• Compliance stage 14-35 days
• 7 day working producing good results
• No negative reaction to new fees
• Direct payment process a nightmare
• 50% plus payment rate at compliance

Non Domestic Rates

• Concerns by clients of impact of

compliance stage on revenue

• Relatively low response at compliance
• compliance stage 10 day
• Impact of 7.5% one case £18k !!!!
• Will we see an impact next year

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

The General Impact

• Marked drop in the number of complaints – May – August (14%)
• Some manipulation of vulnerability rules by “advice groups”
• Significant increase in engagement at earlier stages in the enforcement

cycle

• Enforcement Agents report knock effect harder at enforcement stage
• Anecdotal allegations of some agencies manipulating “sale stage”
• IN HOUSE SUDDENLY ATTRACTIVE

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

In House vs External

IN HOUSE EXTERNAL Retain revenue in house Deliver flexibility Treat those who are vulnerable fairly Greater resource Joined up process Systems Manage own resource base Its what we do!!!

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

In house the issues

Concluded that an in-house enforcement service would bring a number of benefits primarily enabling a holistic approach to debt recovery, and an appropriate level of support for vulnerable residents and those facing the impact of welfare reform

• How does this fit into the cuts agenda
• Is it about service or greed
• What happens when the resource is squeezed
• How do you retain enforcement agents with no rewards structure

WELFARE REFORM – TRANSFORMING DEBT RECOVERY

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

Small balance cases – what to do

• New fee regime can be seen to be penal
• Cases <£200 compliance stage only – an option
• Liability order vs Debt Collection
• CTRS – Ignore it and hope it goes away
• Debt collection only

AN IDEA

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

Small balance cases – what to do

• Combined Letter/telephone collection platform
• Pro-active approach to engagement
• Not an enforcement company
• Commercial models based on Risk/Reward and Guaranteed
• utcomes to drive the right customer treatment

We guarantee to provide an effective service in line with the new regulations whilst protecting your vulnerable customers 8

The Future

• Ministry of Justice to conduct 12 month review in April 2015
• In house option will either fly or crash and burn???
• Hot air replaced by reality

NO MORE PHANTOM VISITS, FEE MANIPULATION, BAD PRACTICE

IT MIGHT ACTUALLY WORK