The UK, like the U.S. , is one of the pioneering countries in matters of credit and all that it involves. A is related to lending , including one of the inevitable parties - the recovery of arrears.
For decades, both in the countries of the west Debt Collection turned into a business that 's dedicated organization : collection agencies . Collection Agencies Association of Great Britain (CSA) has been around for over 100 years. Overall, in the United Kingdom engaged in debt collection services 450-500 companies and collectors , freelancers , ie independently operating collectors who live in a certain area of the city ( or rural) and personally familiar with all the residents . However, a major player in arrears are still collecting agencies (collection agency)
Provision of legislative
Evolving along with the entire state system , the market is overdue debt in the UK has become very effective mechanism due to its transparency , a common information field , in the framework of which the banking institutions and collectors , the availability of state policy in the field of financial education of citizens, the existence of a class of intermediaries , advisors , providers management service payments on loans, and carefully prescribed procedures of bankruptcy.
The legal framework for the activities of banks and collectors of arrears has been particularly active form after a boom in consumer lending. Originally lending and debt collection procedures act imputed to creditors "On Fair Trade " in 1973 (Fair Trading Act). According to this act created a supervisory body accountable to Parliament for the implementation of the provisions of the law that regulates all aspects of the organization of trade and consumer service - General Manager's Office of Fair Trade (Office of Director-General of Fair Trading - OFT).
Act "On consumer credit" in 1974 (Consumer Credit Act) expanded the powers of the Office of Oversight and market development over banking institutions engaged in consumer lending , and specialized credit institutions. In an act of "On consumer credit" were separately specified auxiliary credit organizations (ancillary credit business), which includes: credit bureau - CRB (credit reference bureau), a debt collection agency (debt collecting) and organizations that advise on debt payments ( debt counseling). According to the said Act, these companies had to obtain a license for its operations .
Collection of overdue debts regulated by a variety of acts . Among them, the act of " On the implementation of justice" in 1970 (Administration of Justice Act), which warns of section 40 of the prevention of pressure on the debtor.
Legislation on insolvency (Insolvency Act) 1986 and the Consumer Protection (Consumer Protection Act) in 1987 allowed to develop the jurisprudence of recovery of debt by filing for bankruptcy of the borrower and eliminate inconsistencies in the interpretation of the bankruptcy laws of the borrower.
Since the early 90s in the UK pulled many American experts express loans , reduced interest rates on loans , and therefore long overdue new consumer boom that is bound to affect the culture of the market. There has been a new round of unbridled consumption of loan products and, consequently, the growth of bad debts . There was a situation where the system of bank lending was not able to cope with this challenge because:
a) Lack of programs to work with borrowers and their training plan costs and the use of credits .
b ) If there is bias in relation to customers , as was detected only negative information on creditors .
c) Lack of proper tools for the communication between the borrower and the owner of the loan, for an equal dialogue between them.
These tasks are in the market arrears were settled in the late 1990s and early 2000s . An important step for this was an act of the Parliament of the " Data Protection Act " in 1998 (Data Protection Act), which contained a reference to the procedure for obtaining access to personal data (within the activities permitted by law) , storage (maintaining a topical form ) and use (only with the consent of the owner of the data ) . According to the new legislation, the creditor could apply to the mere credit bureau with the request to make changes to stored data , if they do not adequately reflect the level of creditworthiness of the borrower.
Remained unsolved problem of the creation of a complete system of dealing with complaints on overdue debts - the protection of their rights by the debtor could only be made in court. The question was solved enactment of the act , " the Financial Services and Markets" in 2000 (Financial Services and Markets Act), authorizing the creation of services , which required to deal with complaints of consumers , as an alternative to civil courts. They were the FSA (Financial Services Authority) and the Office of the Ombudsmen of the financial market (Financial Ombudsman Service - FOS), the Act "On consumer credit" in 2006 expanded the powers of FOS on the complaints by collection agencies .
Practical experience of collectors has been reflected in the requirements of the regulation and supervision: The Financial Services Authority in 2000 initiated a program of the fair treatment of consumers of financial products (Treating Customers Fairly), in which a broad opinion of the representatives of the financial market was introduced scheme of work with the client throughout the service chain , including no charge .
Thus , the legal regulation of collection agencies with bad debts is quite versatile and takes into account the interests not only of the creditor, but the debtor. Word rests with the participants of the market that are designed to comply with these regulations for the efficient operation of the entire financial system.
Collectors freelance
In the UK, common phenomena that are far enough from the Belarusian reality : debt collection by private individuals , collectors , freelancers.
. Collector- time freelancer working with several different portfolios of outstanding debt collection agencies . Often this work is a family business . The scale of it as a rule does not exceed either the one area of the city or town in the countryside, but this is a freelancer for a steady income.
In the UK, there are quite a freelancer wide range of responsibilities when dealing with the debtor . Manifold in communication with the debtor can set their own schedule and rate of non-recurring charges. Such a system is reasonable and effective when in the city or the countryside there is no separation of the collection agency , and at the office in London, collectors is difficult to understand what the financial situation of the debtor and the capabilities of each of the provinces. Local same collector , knowing personally all debtors of his district and having a good commission from the agency is primarily interested in high performance , and because he, along with the debtor seeking appropriate ways and adjusts the maturity of the debt.
It would seem that the presence of the broad powers of the freelancer should cause many of them to the award of funds, relying collection agencies . However, cases of fraud among collectors , freelancers are extremely rare. Receiving money from the debtor's cash, collector issues a receipt , a copy of which is sent to a collection agency . A receipt is a "point of control" produced a proof of payment and the fact of appropriation of money , if the amount received freelance agency did not return . Therefore, failure to return the money the agency freelancer is not favorable : the loss of business and the lack of prospects for further development in this area.
collection agencies
The legal basis for the existence of collection agencies in Belarus and the UK is significantly different though the fact that Belarus collector activity is a form of licensed activities , although the collection of debts next " collection " method itself is possible. In general, the British collection agencies engaged in about the same and in the same form in which it is done by their colleagues in Belarus. Tellingly, a number of agencies are going beyond simply collecting and try to work on the prevention of risks.
"In an ideal world , of course, debtors will pay their bills on time and will not need to think about how to return the cost of resisting payment or fails to fulfill its obligations of the counterparty.
In reality, it is quite natural to be cautious , giving credit to customers and keep track of how much the loan is not paid and whether the payments are made on time . Inability to make the first can lead to the formation of problematic debts, while the inability to make a second major impact on cash flow , which in turn may reduce the success of a business .
Effective monetary policy is also effective as a starting point for avoiding foreclosure in the future, when the debtor accepts the fact that the contract is agreed on the terms and conditions , and then it is clear who should pay whom and for what.
Plan and implement effective policies , establishing the format of contracts, getting credit reports to potential client in order to be able to make informed decisions about how much extra credit to give and for how long - it should be the focus of your business. " - Write the staff of one of the agencies on its website gbms.org.uk.
debt arrangement scheme
Many organizations are emphasizing that they are willing to provide services to recover almost all over the world, regardless of the location of the debtor.
To entice customers , companies emphasize the positive aspects of their activities , allocate its advantages, such as prolonged exposure to the market , the positive feedback from partners and work efficiency . A number of organizations are working on the principle that " we do not get if you do not get anything ," ie, require compensation only if the duty chargeable successfully .
An interesting procedure for repossession of assets belonging to the debtor? debt arrangement scheme
"The easiest method of enforcement requires only filling a number of relevant documents to the court and the payment of a fee . Court then sends instructions to the sheriff or bailiff to the fact that it has seized property . Establishment of the sheriff or police officers may withdraw a sufficient amount of wealth or money of the home or commercial premises of the debtor to repay the debt and the cost of procedures to recover " - writes on his website of the agencies .
conclusion
Thus, from the foregoing it can be a logical conclusion that the development of the collection market in the country depends on factors such as the development of consumer credit and the availability of a proper legal framework to regulate the collection . Britain has always been one of the leading countries in the legal regulation of business , and indeed the business activities , together with capitalism , it appeared earlier than in many other states . The result: today and in the level of development of the market of debt collection , this country is now one of the first places.debt arrangement scheme
For decades, both in the countries of the west Debt Collection turned into a business that 's dedicated organization : collection agencies . Collection Agencies Association of Great Britain (CSA) has been around for over 100 years. Overall, in the United Kingdom engaged in debt collection services 450-500 companies and collectors , freelancers , ie independently operating collectors who live in a certain area of the city ( or rural) and personally familiar with all the residents . However, a major player in arrears are still collecting agencies (collection agency)
Provision of legislative
Evolving along with the entire state system , the market is overdue debt in the UK has become very effective mechanism due to its transparency , a common information field , in the framework of which the banking institutions and collectors , the availability of state policy in the field of financial education of citizens, the existence of a class of intermediaries , advisors , providers management service payments on loans, and carefully prescribed procedures of bankruptcy.
The legal framework for the activities of banks and collectors of arrears has been particularly active form after a boom in consumer lending. Originally lending and debt collection procedures act imputed to creditors "On Fair Trade " in 1973 (Fair Trading Act). According to this act created a supervisory body accountable to Parliament for the implementation of the provisions of the law that regulates all aspects of the organization of trade and consumer service - General Manager's Office of Fair Trade (Office of Director-General of Fair Trading - OFT).
Act "On consumer credit" in 1974 (Consumer Credit Act) expanded the powers of the Office of Oversight and market development over banking institutions engaged in consumer lending , and specialized credit institutions. In an act of "On consumer credit" were separately specified auxiliary credit organizations (ancillary credit business), which includes: credit bureau - CRB (credit reference bureau), a debt collection agency (debt collecting) and organizations that advise on debt payments ( debt counseling). According to the said Act, these companies had to obtain a license for its operations .
Collection of overdue debts regulated by a variety of acts . Among them, the act of " On the implementation of justice" in 1970 (Administration of Justice Act), which warns of section 40 of the prevention of pressure on the debtor.
Legislation on insolvency (Insolvency Act) 1986 and the Consumer Protection (Consumer Protection Act) in 1987 allowed to develop the jurisprudence of recovery of debt by filing for bankruptcy of the borrower and eliminate inconsistencies in the interpretation of the bankruptcy laws of the borrower.
Since the early 90s in the UK pulled many American experts express loans , reduced interest rates on loans , and therefore long overdue new consumer boom that is bound to affect the culture of the market. There has been a new round of unbridled consumption of loan products and, consequently, the growth of bad debts . There was a situation where the system of bank lending was not able to cope with this challenge because:
a) Lack of programs to work with borrowers and their training plan costs and the use of credits .
b ) If there is bias in relation to customers , as was detected only negative information on creditors .
c) Lack of proper tools for the communication between the borrower and the owner of the loan, for an equal dialogue between them.
These tasks are in the market arrears were settled in the late 1990s and early 2000s . An important step for this was an act of the Parliament of the " Data Protection Act " in 1998 (Data Protection Act), which contained a reference to the procedure for obtaining access to personal data (within the activities permitted by law) , storage (maintaining a topical form ) and use (only with the consent of the owner of the data ) . According to the new legislation, the creditor could apply to the mere credit bureau with the request to make changes to stored data , if they do not adequately reflect the level of creditworthiness of the borrower.
Remained unsolved problem of the creation of a complete system of dealing with complaints on overdue debts - the protection of their rights by the debtor could only be made in court. The question was solved enactment of the act , " the Financial Services and Markets" in 2000 (Financial Services and Markets Act), authorizing the creation of services , which required to deal with complaints of consumers , as an alternative to civil courts. They were the FSA (Financial Services Authority) and the Office of the Ombudsmen of the financial market (Financial Ombudsman Service - FOS), the Act "On consumer credit" in 2006 expanded the powers of FOS on the complaints by collection agencies .
Practical experience of collectors has been reflected in the requirements of the regulation and supervision: The Financial Services Authority in 2000 initiated a program of the fair treatment of consumers of financial products (Treating Customers Fairly), in which a broad opinion of the representatives of the financial market was introduced scheme of work with the client throughout the service chain , including no charge .
Thus , the legal regulation of collection agencies with bad debts is quite versatile and takes into account the interests not only of the creditor, but the debtor. Word rests with the participants of the market that are designed to comply with these regulations for the efficient operation of the entire financial system.
Collectors freelance
In the UK, common phenomena that are far enough from the Belarusian reality : debt collection by private individuals , collectors , freelancers.
. Collector- time freelancer working with several different portfolios of outstanding debt collection agencies . Often this work is a family business . The scale of it as a rule does not exceed either the one area of the city or town in the countryside, but this is a freelancer for a steady income.
In the UK, there are quite a freelancer wide range of responsibilities when dealing with the debtor . Manifold in communication with the debtor can set their own schedule and rate of non-recurring charges. Such a system is reasonable and effective when in the city or the countryside there is no separation of the collection agency , and at the office in London, collectors is difficult to understand what the financial situation of the debtor and the capabilities of each of the provinces. Local same collector , knowing personally all debtors of his district and having a good commission from the agency is primarily interested in high performance , and because he, along with the debtor seeking appropriate ways and adjusts the maturity of the debt.
It would seem that the presence of the broad powers of the freelancer should cause many of them to the award of funds, relying collection agencies . However, cases of fraud among collectors , freelancers are extremely rare. Receiving money from the debtor's cash, collector issues a receipt , a copy of which is sent to a collection agency . A receipt is a "point of control" produced a proof of payment and the fact of appropriation of money , if the amount received freelance agency did not return . Therefore, failure to return the money the agency freelancer is not favorable : the loss of business and the lack of prospects for further development in this area.
collection agencies
The legal basis for the existence of collection agencies in Belarus and the UK is significantly different though the fact that Belarus collector activity is a form of licensed activities , although the collection of debts next " collection " method itself is possible. In general, the British collection agencies engaged in about the same and in the same form in which it is done by their colleagues in Belarus. Tellingly, a number of agencies are going beyond simply collecting and try to work on the prevention of risks.
"In an ideal world , of course, debtors will pay their bills on time and will not need to think about how to return the cost of resisting payment or fails to fulfill its obligations of the counterparty.
In reality, it is quite natural to be cautious , giving credit to customers and keep track of how much the loan is not paid and whether the payments are made on time . Inability to make the first can lead to the formation of problematic debts, while the inability to make a second major impact on cash flow , which in turn may reduce the success of a business .
Effective monetary policy is also effective as a starting point for avoiding foreclosure in the future, when the debtor accepts the fact that the contract is agreed on the terms and conditions , and then it is clear who should pay whom and for what.
Plan and implement effective policies , establishing the format of contracts, getting credit reports to potential client in order to be able to make informed decisions about how much extra credit to give and for how long - it should be the focus of your business. " - Write the staff of one of the agencies on its website gbms.org.uk.
debt arrangement scheme
Many organizations are emphasizing that they are willing to provide services to recover almost all over the world, regardless of the location of the debtor.
To entice customers , companies emphasize the positive aspects of their activities , allocate its advantages, such as prolonged exposure to the market , the positive feedback from partners and work efficiency . A number of organizations are working on the principle that " we do not get if you do not get anything ," ie, require compensation only if the duty chargeable successfully .
An interesting procedure for repossession of assets belonging to the debtor? debt arrangement scheme
"The easiest method of enforcement requires only filling a number of relevant documents to the court and the payment of a fee . Court then sends instructions to the sheriff or bailiff to the fact that it has seized property . Establishment of the sheriff or police officers may withdraw a sufficient amount of wealth or money of the home or commercial premises of the debtor to repay the debt and the cost of procedures to recover " - writes on his website of the agencies .
conclusion
Thus, from the foregoing it can be a logical conclusion that the development of the collection market in the country depends on factors such as the development of consumer credit and the availability of a proper legal framework to regulate the collection . Britain has always been one of the leading countries in the legal regulation of business , and indeed the business activities , together with capitalism , it appeared earlier than in many other states . The result: today and in the level of development of the market of debt collection , this country is now one of the first places.debt arrangement scheme
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