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Adam WonnacottBurlington Group
“Enforcement Team of the Year 2014”
Who are Burlington?
Authorised and regulated by Financial Conduct Authority and Solicitors Regulation Authority; authorised by Ministry of Justice as High Court Enforcement Officers
UK-wide service provision, making over 1500 customer contacts per month
Offering lenders a full spectrum of debt management services that include outbound multi-channel collections, field services, debt litigation and High Court Enforcement.
Who are Burlington?
Members of the Finance and Leasing Association, Credit Services Association, and the Civil Enforcement Association
Winners of the ‘Enforcement Team of the Year’ Award 2013 and 2014 and finalists in the British Credit Awards and Credit Today Awards 2015
CSA Accredited organisation (‘Collector Accreditation Initiative’)
Scope
Comparison of regulatory regimes in financial services and taking control of goods
Similarities:
• Both are subject to recent regulation • Both contain safeguards designed to ensure fair treatment of consumers • Both set out protection for vulnerable consumers
Differences:
• Whilst there are consequences for breaches of TCOG legislation, there is no regulator to enforce compliance
• TCOG legislation is prescriptive, whilst FCA regulation is ‘outcomes focused’
The FCA model finding favour: Parallel markets
As a result of the level of resource engaged by the FCA to produce their consumer protection model, some large organisations (including other regulators) have sought to adopt parts of the regulatory model
In 2014 OFWAT produced guidelines “Dealing with household customers in debt” to state that water firms should only engage FCA regulated DCA’s (this has recently been revised)
Many utilities firms prefer to engage with FCA regulated service providers, notwithstanding the fact that the FCA does not regulate these consumer markets
The FCA model finding favour: Parallel markets
Utilities and regulated markets appear to want more comprehensive levels of consumer protection in the debt collection/enforcement process
However, only firms whose activities are covered by the Financial Services and Markets Act can apply to be regulated by the FCA
Is there room to consider a ‘gap analysis’ between TCOG and FCA regulation and identify what is needed to increase confidence?
Where are the potential ‘gaps’?
Cultural: Treating Customers Fairly (the six outcomes)
Risk-based approach/Quality Assurance: How do firms measure the risk of non-compliance on an ongoing basis?
Complaints: Looking at ‘root cause’ of complaints to see if processes (or people) cause customer detriment; role of the ombudsman?
Affordability/forbearance
Summary
FCA regulation has raised the bar as regards consumer protection
Creditors in regulated environments see FCA authorisation as desirable or a pre-requisite – could some local authorities follow suit?
Does this suggest that there are gaps in TCOG and, if so, what can we (as an industry) do about it?
What happens if the industry fails to regulate itself – is independent regulation inevitable?
