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EVENT SUMMARY+ ¦ Credit and Collections Technology Think Tank 2024

2024 Collections Benchamarking An interesting dicussion that the Credit and Collections Technology Think Tank for 2024. Certainly some bit themes around data, transparency of process and honesty in communication, all to build trust with customers over the longer term. Regulation and regulatory compliance was a big topic, reflecting the volume of change underway. Likely to continue as a theme into 2025. The Global Collections Benchmarking study is also out. If you would like a copy of the 2023 report and… Read more

INSIGHTS ¦ Credit Information Market Study: Implications for Creditors

The Credit Information Market Study (CIMS), initiated by the Financial Conduct Authority (FCA), aims to enhance the quality and consistency of credit information in the UK. This initiative involves several key proposals designed to improve data sharing and reporting practices among financial firms and credit reference agencies (CRAs). Key Highlights Mandatory Data Sharing: In-scope firms will be required to share credit data with designated CRAs to ensure more comprehensive and accurate credit information. Regulatory Reporting: A new reporting framework for… Read more

INSIGHTS ¦ The psychological toll of local and national government debt collection practices

Link Description The "In the Public Interest?" report examines the psychological impact of debt collection practices by local and national governments. It explores how debt collection escalates stress, harms mental health, and creates feelings of shame and isolation. The report highlights the urgent need for reform in public sector debt collection, especially for people with mental health issues. It calls for improved communication, more flexible timelines, and better support for vulnerable populations, while also detailing the systemic shortcomings of current… Read more

INSIGHTS ¦ Financial Health Report 2024

Link Description The "Financial Health Report: Affordability and Forbearance Subgroup" provides an in-depth analysis of the financial landscape in the UK following the cost-of-living crisis. It focuses on key trends in mortgage affordability, debt burdens, and financial resilience across different demographics. The report highlights the financial pressures faced by UK consumers, particularly in areas such as mortgages, energy costs, and personal debt, while also addressing gender disparities in debt repayment and savings. It aims to guide financial institutions in making… Read more

INSIGHTS ¦ How debt collection practices cause psychological harm

Link Description The "Debts and Despair" report explores the severe psychological impact of debt collection practices on individuals, particularly those experiencing mental health challenges. It provides data-driven insights into how rising living costs, coupled with aggressive and frequent debt collection tactics, are affecting the well-being of UK citizens. The report focuses on the mental health consequences of debt, including anxiety, depression, and suicidal thoughts, and offers recommendations for how financial institutions, regulators, and the government can reform debt collection practices… Read more

KEY THEMES+ ¦ DEMSA Newsletter

What you need to know this week Nikhil Rathi discussed Consumer Duty at StepChange Connected 2024, emphasising a shift in philosophy rather than new rules. Abby Thomas highlighted the increase in unaffordable lending complaints in her speech at the same event. MorganAsh launched a new customer portal "It’s Who I Am" to encourage vulnerability disclosures. FCA holds interest rates at 5%, and CPI remains at 2.2%. Consumer confidence has dropped, influenced by concerns over government budget plans. The ICO Sandbox… Read more