ConsumerFinanceAssociation

Our Quarterly Magazine • Issue 5 • March 2019

Plus contributions from the FCA, Lantern and Croner

Magazine

StepChange Debt Charity shares an update on trends in the HCSTC Market

2 March 2019

Contents3 Welcome from the EditorWelcome to the fourth edition of the CFA magazine

4Update from the CEOJason Wassell

6HCSTC industry insights from StepChangePeter Tutton, Head of Policy at StepChange Debt Charity, shares an update on their clients with HCSTC

8FCA publishes data on the HCSTC sectorLucy Donovan, Head of Communications, explains the headline findings from the regulator

9Employment Law: What to expect in 2019

10Brokering a deeper relationshipThe CFA team reports on the recent meeting between Broker members and the CFA Board

11CFA: FCA information on preparing your firm for BrexitThe FCA shares some details on the steps firms should be taking to plan for possible Brexit scenarios

12Five years on… where are we?CFA CEO, Jason Wassell, shares some thoughts on five years of FCA regulation and the impact of FOS

14Policy UpdateHead of Policy for the CFA, Helen McCarthy, shares an update on the regulation of Claims Management Companies – changes are coming

15Lantern’s Approach to Treating Customers FairlyCEO of Lantern, Denise Crossley discusses how the company implements TCF

17Board of Directors

18Want a product or service? We have new Associate Members – check them all out

Consumer Finance AssociationPO Box 17401BIRMINGHAMB2 2GW020 3553 3668enquiries@cfa-uk.co.uk

3

Welcome from the Editor

issues. These summits are designed to explore an issue in greater detail, and I’m delighted to say that the April session will focus on the Senior Managers and Certification regime and will include a presentation from Clare Hughes, Partner at Addleshaw Goddard.

The highlight of the calendar year is set to be the CFA Conference and dinner once more, which will take place on the 9th and 10th of October at the Hilton DoubleTree, Manchester. Please note the date in your diaries, the booking website will open shortly and early-bird booking rates will be open to members until the end of April.

W e are back with our first edition of 2019. There is lots to update you on from the first few months of

this year. We have had publications from the FCA, and we have also held our own events in form of the CFA Complaints forum and a roundtable with broker members and the CFA Board.

Inside we hear from Denise Crossley of Lantern, one of our associate members, about their approach to treating customers fairly. Peter Tutton, Head of Policy at StepChange Debt Charity, also shares their recent experience of HCSTC in the clients they see. As usual we also have advice from Croner, this time focusing on employment law.

This edition’s policy update also focuses on the changes coming in the regulation of Claims Management Companies, as complaints continue to dominate proceedings for many members.

In other news, I would like to draw your attention to upcoming events. At the CFA, we are holding a range of summits for members, based on our priority

I would like to draw your attention to upcoming events. At the CFA, we are holding a range of summits for members, based on our priority issues.

Lucy DonovanHead of Communications E: lucy.donovan@cfa-uk.co.uk M: +44 (0)7814 760317

4 March 2019

Update from the CEO

On SM&CR, we have held some further workshops, with plans for more and I am pleased to say that the CFA Spring Summit in April will focus on the new regime. I hope many members will be able to join us.

Looking at other events, we also have a date for our 2019 Annual Conference. Like last year, we will be holding a dinner for members on the evening prior to the conference. If you interested in being involved in the conference, or in sponsoring the event, please contact the CFA team.

Lastly, I wanted to touch on the CFA Board meeting that took place in February. In line with our commitment in October, we have stepped up our external engagement. Understandably Brexit continues to throw a spanner in the works politically. Hopefully some certainty will emerge in the coming weeks. I know that Credit Strategy’s upcoming Credit Week will be a good opportunity to meet up with external representatives and members alike.

In the last edition, I spoke about the CFA’s plans for the coming year and the focus on three priority issues- complaints, the lender/broker relationship and GDPR and

the new Senior Managers & Certification regime (SM&CR). I hope you will see from this issue that we have been moving forward on many of these subjects.

On complaints, we continue our engagement with FOS and the FCA, and we have been involved in the new regulation for CMCs when the FCA takes over in April. Complaints continue to have an impact on the sector and we are seeing restructuring of the market which includes the departure of some firms.

With regard to the lender/broker relationship, in January we brought together both broker members and representatives of the CFA Board. The aim of this meeting was to better understand the current issues facing both groups. You can read more about the session later in this edition.

CFA CEO, Jason Wassell shares his thoughts on the first few months of the new year

2019: this year, like so many others is already flying by.

With regard to the lender/broker relationship, in January we brought together both broker members and representatives of the CFA Board. The aim of this meeting was to better understand the current issues facing both groups.

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HCSTC industry insights from StepChange

However by 2016, the proportion of clients with HCSTC had crept back up above 16%, with a wider range of lenders offering instalment loans.

We took this as evidence that the market was starting to adapt to the FCA interventions; and while we could see some definite improvements, we were still seeing problems with affordability including a significant proportion of clients with multiple HCSTC debts.

Moving on two years, here is a rough and provisional data snapshot from 180,000 clients we advised in the first half of 2018.

The proportion of clients with HCSTC

L ast October the Consumer Finance Association kindly invited me to join a panel discussion at the Birmingham conference. I promised

I would give an update on people seeking help from StepChange Debt Charity with high cost short term credit (HCSTC).

Back in 2016 our report Payday Loans: The next generation found that the proportion of StepChange clients with HCSTC had fallen rapidly following the cap and other FCA interventions- from 23% to under 16%. We were also seeing fewer cases of clients reporting severe conduct problems with lenders.

Peter Tutton, Head of Policy at StepChange Debt Charity, shares an update on their clients with HCSTC

www.cfa-uk.co.uk

Back in 2016 our report Payday Loans: The next generation found that the proportion of StepChange clients with HCSTC had fallen rapidly following the cap and other FCA interventions- from 23% to under 16%.

6 March 2019

7

Peter TuttonPeter has worked on credit, debt and related policy since 2004 at Citizens Advice and now at StepChange.

has increased to over 18% - not the rocket fuelled growth we were seeing before the FCA remedies, but getting back towards one in five clients with a HCSTC debt.

The proportion of clients with multiple HCSTC debts also appears to have grown since 2015 – from 9% to 11%; with a larger proportion of clients with higher multiples.

The average individual HCSTC balance has increased from £513 in 2015 to over £600 in 2018, perhaps reflecting larger instalment loans.

Drilling deeper, the circumstances of StepChange clients with HCSTC loans throws up some interesting insights:• Clients with HCSTC fall into two distinct

groups. Around 95% have other credit debts and around 5% (or 1% of all StepChange clients) only have HCSTC debts

• Clients with HCSTC debts are less likely to have additional vulnerabilities and less likely to have deficit budgets than StepChange clients overall. That said, around one in five of the 95% group had a deficit budget at the time they sought advice. The proportion was lower for the 5% group.

• The total debt levels of clients with HCSTC debts are lower, but clients with HCSTC and other debts had a higher number of debts than other StepChange clients, with around a third of their debts being HCSTC. This was not true of the 5% group.

• Both HCSTC client groups had higher contractual credit repayments than clients without HCSTC.

• The group whose only credit debts were HCSTC was highly over-represented among under 25’s, and among men.

• The 95% group are more likely to have priority arrears in addition to credit debts, but the 5% group less so.

So to conclude, what might this possibly mean?We are seeing resurgence in the proportion and number of people with HCSTC debts, and multiple HCSTC debts are becoming more common.

For the great majority of our clients with HCSTC debts, these form part of a wider debt problem. The concern here is that clients may be using HCSTC as a coping mechanism that can increase payment pressures and make debt problems worse.

But a small sub-set of our clients seem to be just or mainly getting into difficulties with HCSTC and they seem to be disproportionately younger men.

We are seeing fewer poor and vulnerable clients with HCSTC debts, which is good news. But affordability concerns remain, and may become more pressing as the move to instalment loans increases both the size of loans and the cost of borrowing for longer.

www.cfa-uk.co.uk

The average individual HCSTC balance has increased from £513 in 2015 to over £600 in 2018, perhaps reflecting larger instalment loans.

2015Number with

HCSTC% all

clients% clients

with HCSTC

1234

5+

6.6%3.4%2.1%1.3%2.2%

42%22%14%9%

14%

2018Number with

HCSTC% all

clients% clients

with HCSTC

1234

5+

7.0%3.8%2.6%1.7%3.3%

38%21%14%9%

18%

8 March 2019

FCA publishes data on the HCSTC sector

Lending volumes have risen since 2016, but remain well below levels seen in 2013.

The top 10 lenders account for around 85% of the total number of new loans.

The number of active firms decreased by over 15% in the past 2 years. This, however, has not resulted in a reduction in total lending.

It also provided us with a view on customer demographics, giving an insight into those that are using the product.

37% of payday loan borrowers and 29% of short-term instalment borrowers are aged 25 to 34

37% of HCSTC borrowers are tenants (including council tenants) and 26% are living with parents

Payday loan borrowers (61%) and borrowers using short-term instalment loans (41%) have a lower level of confidence managing their money than the wider UK adult population (24%)

67% of payday loan borrowers and 49% of short-term instalment borrowers are over-indebted compared with 15% of UK adults

Where do HCSTC customers live?• the North West has the highest number

of loans per head of adult population (125 per 1,000) and Northern Ireland the lowest (74 per 1,000)

• average loan values are highest in Greater London

This broadly reflects what we know about HCSTC users. They are often younger and living in rented accommodation, in areas such as London and the North West.

The full data sets can be downloaded from the FCA website if you would like more information.

It is helpful that the FCA has published this data, and we will be using this information in our external meetings, to demonstrate how this sector has changed. It also demonstrates the ongoing demand for the product by consumers that struggle to access mainstream finance.

In January, we were somewhat surprised when the Financial Conduct Authority (FCA) announced that they were publishing data on the HCSTC market. We weren’t

expecting a publication of this kind and it is the first time that the regulator has shared data like this about the HCSTC industry.

The data was collected from the returns that regulated firms submit to the FCA. The regulator uses this information to continue to inform how they should regulate the sector, and if any changes need to be made to the current rules.

What did the data reveal?The data covers a number of different areas including the size of market, customer demographics and their thoughts on their approach to financial management.

Most of the figures published in this data set are based on analysis from 1 July 2017 to 30 June 2018.

In terms of market size, both firms and external stakeholders are always keen to know what the industry looks like now. These figures shed some light on the number of loans and trends in the sector.

Over 5.4 million loans were made in the year to 30 June 2018.

The average loan value in the year to 30 June 2018 was £250. The average amount payable was £413 which is 1.65 times the average amount borrowed.

Lucy DonovanHead of Communications E: lucy.donovan@cfa-uk.co.uk M: +44 (0)7814 760317

Lucy Donovan, Head of Communications, explains the headline findings from the regulator

Employment Law: What to expect in 2019

itemised payslips to all workers. The new payslips must include the number of hours worked where the workers’ pay varies by the amount of time they have worked.

In preparation of this change, you should review your payroll systems to ensure they are up-to-date and in line with the new changes.

Auto Enrolment ContributionsFrom 6 April the minimum contributions for auto-enrolment pension schemes will increase for both employers and employees. Under these new requirements employers must contribute a minimum of 3% of an eligible worker’s pre-tax salary to their pension pot, with the individual contributing 5% themselves.

EU Settlement SchemeBritain is set to leave the European Union on 29 March 2019. As it stands Brexit shouldn’t have a great deal of impact on employment law as the government have committed to keeping the majority of the EU laws relating to employment.

If Britain is to leave the EU with a deal, EU nationals with 5 years UK residency by 31 December 2020 will be entitled to apply for

Dates for the diary1st April: National Living Wage Increases

4th April: Businesses must Publish Gender Pay Gap Reports

6th April: Statutory Sick Pay (SSP) goes up

6th April: Pension Contributions increase to 8%

6th April: Changes to Payslips

7th April: Statutory Pay for Maternity, Paternity, Adoption and Shared Parental Leave Increases

‘settled status’. Those with less than 5 years’ residency can apply for ‘pre-settled status’.

In the event of a no-deal, the dates for the settlement scheme will change and a new immigration policy will be put into place with effect from March 2019.

Practical steps you can take include reviewing your workforce. Do you employ EU nationals currently or plan to do so in future? You should also remain well informed of the ongoing Brexit developments and the implications it may have on your business short term and long term.

Need help preparing for the changes?As part of your membership with CFA you can speak to a Croner expert for help with any of the above issues, including pay gap reporting, changes to payslips, worker rights, Brexit and the EU Settlement Scheme.

Call 0844 561 8133 today and quote your membership number.

2018 was a fascinating year for employment law, with a variety of changes and landmark cases in employment rights. 2019 promises

to build upon some of the big issues raised in 2018, with some big changes coming to workers’ rights and wages.

Pay ReportingNew legislation will require UK businesses with more than 250 employees to report the pay gaps between their CEO’s and the average employee. Alongside this, companies will be required to publish supporting and explanatory information to ‘justify’ their CEO salaries.

For a second year, companies with 250 employees will be required to publish their gender pay gap figures on 4 April 2019. Although many will be doing this for a second time, these figures are expected to be heavily scrutinised in order to determine whether efforts have been made to address previous highlighted discrepancies.

With the deadline fast approaching, if you haven’t already, you should start preparing your reports now. Where pay gaps become apparent, consider what justification can be given and what actions can be taken to narrow these gaps.

Financial Increases and PayslipsNational minimum wage is due to increase by 4.9% from £7.80 to £8.21 for workers over the age of 25. Workers under 25 will also receive an increase of wages from 1 April 2019.

From 6 April 2019, statutory sick pay (per week) will rise from £92.05 to £94.25.

Also on 6 April, new legislation will change how UK employers provide payslips to their workforce. Under this new legislation, employers will need to provide

www.cfa-uk.co.uk

9

March 201910

issues that the lenders are tackling there was considerable discussion about FOS/Complaints.

CFA directors were open to a general discussion about how they expect the sector to develop over the next few months in response. Though of course individual firms were careful not to talk about specific plans.

There were some very important contributions to a debate about what the future eco-system might look like for HSCTC lending.

The CFA team was also able to walk through the various tactics we have implemented over the last year, talking about the range of discussions held with regulators and other stakeholders.

The second reason for the meeting was to allow the CFA Board to hear from the brokers on issues that they wanted to raise.

There was a very useful discussion about flows of information, and how customer data needs to be protected.

Around the period of the introduction of GDPR, both lenders and brokers talked about what this would mean in terms of new responsibilities. This prompted further debate about how lenders and brokers could work together.

Throughout there was agreement that there were benefits in CFA members - both lenders and brokers - working together to create good customer outcomes.

Looking at next steps, there was agreement that the session was helpful in bringing everyone up to the same point. It was felt that there should be more meetings to take these discussions further.

T he relationship between brokers and lenders is obviously important and was one of the first issues for discussion by the

current CFA Board. Directors agreed that the business model for many short-term lenders relies on keeping open the option for lenders to work with brokers.

For the CFA team, this has influenced our policy work and the team are keen to monitor any developments. This has become a matter for discussion with the Financial Conduct Authority, seeking to ensure that there are no new additional regulatory threats. For example, the introduction on any additional regulation in this area might have a real impact on business models.

So earlier this year, the CFA Board met with many of the CFA Broker members for two reasons. The first was to provide a briefing on some of the largest issues impacting on lenders.

As you would expect, in talking about

There were some very important contributions to a debate about what the future eco-system might look like for HSCTC lending.

Brokering a deeper relationshipThe CFA team reports on the recent meeting between Broker members and the CFA Board

CFA broker membersBizfella

Digitonomy

Lead Affinity

LeadsMarket

Money Gap Group

Nouveau Finance

Sandhurst Associates

Stop Go Networks

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11

It can be complex to navigate whether your business falls within this category, and to what extent. Late last year, the FCA published a series of questions to help regulated firms determine if they’re affected by Brexit. If you have not looked at this already, you should do so urgently.

The FCA have said they expect firms’ Brexit contingency plans to be well advanced now, including plans for communicating with customers. The FCA have also made it clear that firms must communicate clearly with affected customers, and in good time.

The FCA has also published updated information on preparing your firm for Brexit, which includes the latest information specific to:

• General Insurance• Retail Banks and Payments• Retail Investments• Pensions and Retirements Income and• Wholesale firms

For further information, including the questions to help determine if you’re affected by Brexit, visit www.fca.org.uk/firms/preparing-for-brexit

T he Financial Conduct Authority (FCA) has published updated information to help regulated firms finalise their preparations for when

the UK leaves the EU. It provides further details on the issues firms need to consider and the actions they may need to take.

The FCA is continuing to plan for a range of scenarios in relation to Brexit, including the possibility of the UK leaving the EU on 29 March 2019 without a deal. A significant part of this work is to ensure regulated firms are ready for exit day. With this in mind, the FCA has continued to publish further updates as more information about what Brexit will mean for financial services has emerged.

UK-based firms that only do business in the UK may be affected less directly than others - or not affected at all. However, firms which carry out business between the UK and the European Economic Area (EEA) – whether through a passport or directly under EU legislation - will be affected.

The FCA have said they expect firms’ Brexit contingency plans to be well advanced now, including plans for communicating with customers

FCA information on preparing your firm for BrexitThe FCA shares some details on the steps firms should be taking to plan for possible Brexit scenarios

www.cfa-uk.co.uk

March 201912

The FOS continues to say that they are merely making individual decisions based on FCA regulation and other considerations. What we seem to see at the CFA, is the creation of new policy or aspects of policy.

There are two factors that we think are in play. First, that the FOS is under increasing pressure to move quicker through their decision-making. Second, after now seeing forty thousand complaints it is inevitable that those decisions are building upon the concept of affordability.

Taken together that means we have pressure on the FOS to build simpler decision-making models. We are also seeing more decisions that introduce ideas, such as “contingency funds” or the inclusion of discretionary expenditure in affordability calculations. Building out the definitions of affordability.

We even hear of a new element of affordability, which seems to be called “sustainability”. This is based on the idea that the number of loans is in itself proof of unaffordability and of detriment. There are suggestions that it is based upon the idea that the product is single-use.

For the CFA this raises questions about the role of the FOS and whether this is really the organisation that should be handling mass claims.

Wider afield and five years on, firms still seem to be dealing with great uncertainty.

What is worrying is that much of the discussion held between firms, the trade association and our regulator during those early days seems to have been forgotten. As the Consumer Finance Association, we

have a challenge to return to explaining why short-term lending exists. We need to explain the factors that create the borrowing need, and that responsible lending may involve repeat lending to smooth income or expenditure over several months.

There is clearly a discussion to be had regarding how the FOS operates, and whether it is fit for purpose. There is a larger debate about the need for product, the benefits of consumer credit and the importance of maintaining access to credit.

It is a challenge that needs us all to come together, to share experiences and work collectively. Only then will make progress.

W e knew that principles-based regulation would not deliver absolute certainty, but we were told that the

FCA would identify issues and tackle them with their improved toolbox.

Our relationship with the FCA started with a flurry of activity in the months before they officially took over from the Office of Fair Trading. We saw FCA officials start to lead in a series of discussions with firms to set out expectations and there was considerable change.

In the last few years it seemed as if the regulatory landscape was much calmer, following the introduction of the price cap and a number of significant detriment reviews. It seemed as if we had drawn a line under the past.

However, a trickle of affordability complaints became a flood, made worse by the work of claims management companies (CMC).

We now find ourselves under pressure from the FOS, and yet we find no relief from the FCA. There seems to be a willingness to allow the FOS to deal with these issues and to determine the detail of what affordability means.

If there has been such a large problem around affordability, it has been under the regulator’s watch. The liabilities that members are identifying now, have come about based on an understanding of what the FCA required of us as lenders.

We have even heard of cases were firms have been asked to give more weight to the FOS adjudicators and ignore months of in-depth discussions with FCA supervisors.

We now find ourselves under pressure from the FOS, and yet we find no relief from the FCA. There seems to be a willingness to allow the FOS to deal with these issues and to determine the detail of what affordability means.

Five years on…where are we?CFA CEO, Jason Wassell, shares some thoughts on five years of FCA regulation and the impact of FOS

Jason WassellContact Jason on 07734 695 714or email jason.wassell@cfa-uk.co.uk

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There are detailed rules specifically for CMCs, covering key areas such as lead generation, investigating claims and keeping customers informed. The FCA’s principles for business will also apply to CMCs, as will the Senior Managers and Certification Regime in due course.

The full FCA authorisation process for CMCs starts in April. There are two application windows. The first authorisation window includes CMCs handing claims about financial services products.

There will be a new, and separate, permission for firms generating leads for CMCs. Firms that only generate leads are in the second authorisation window.

All the information the FCA has about CMCs, and the individuals involved in running them, will feed into the authorisation process. And any CMC with a formal disciplinary history, including CMCs under investigation, will have to explain this to the FCA as part of the authorisation process.

We know that the FCA is champing at the bit to get started with CMC regulation. We have been sharing information about the worst CMC practices with the FCA over the last year or so. Of course, we have also offered to provide evidence of these practices. It is in the interests of both consumers and firms that the CMC market is cleaned up and works for customers rather than being solely focused on lining the pockets of CMCs.

FCA regulation should make a big difference in the way CMCs operate. Some will leave the market before the FCA takes over, others will fall away during the authorisation process.

Changes won’t be instant though. It will take a bit of time for the authorisation process to run its course, and for CMCs to really become familiar with what is

expected of them. Unfortunately there will be some who think they can simply carry on regardless. This makes reporting continued poor behaviour all the more important – if the regulator doesn’t know what is happening, it can’t take action.

We will keep reporting poor behaviour, some of which verges on criminal, and are encouraging members to report non-compliant CMCs to the FCA.

It will be interesting to see how the CMC market changes in the short-term. In the longer-term, even bigger changes are likely when the FCA uses its power to cap CMC fees on all claims related to financial services. We’ll be pressing the FCA to use this power sooner rather than later.

C omplaints and claims management companies (CMCs) have been an issue for lenders over the last couple

of years.From originating a small proportion of

complaints, CMCs are now responsible for up to 80 per cent of complaints submitted to short-term lenders.

As well as volume, there have also been numerous other issues with the content of complaints submitted by CMCs, and the tactics used by some CMCs.

Template letters are common, with customers simply picking the reason for the complaint from a drop down list and the CMC appearing to do little to verify the complaint. For some lenders this results in as many as one in four CMC complaints related to individuals who had never had a loan from that lender.

CMCs are regulated now but the Claims Management Regulator hasn’t had the powers or resources it needs to take action against widespread poor behaviour by CMCs.

From 1st April 2019 it is all change when CMC regulation becomes the responsibility of the FCA.

In fact that change has already started. From 1st January, any CMC wanting to stay in the market could apply for temporary permission from the FCA. A CMC that hasn’t applied by 31st March will not be able to operate in the market.

We don’t have any detailed information about the number of CMCs that have applied for temporary permission so far. Anecdotally we have heard that the number is larger than expected, and includes some unexpected applications from CMCs that were expected to leave the market. All will become clearer on 1st April 2019.

The FCA has made its expectations of CMCs very clear.

From 1st January, any CMC wanting to stay in the market could apply for temporary permission from the FCA. A CMC that hasn’t applied by 31st March will not be able to operate in the market.

14 March 2019

www.cfa-uk.co.uk

Helen McCarthyHelen has more than 20 years’ experience in the public policy arena. She started her career as a civil servant in the Department of Work and Pensions before moving

to HM Treasury. Since leaving the civil service, Helen has held senior positions in a large financial services trade association and major financial services companies. Most recently, she has been a senior policy researcher at Citizens Advice. Helen joined the CFA as Head of Policy in January 2014.

Policy UpdateHead of Policy for the CFA, Helen McCarthy, shares an update on the regulation of Claims Management Companies – changes are coming

Lantern’s Approach to Treating Customers Fairly

the customer journey. Other contact methods are being explored and tested throughout this year including SMS Chat.

Lantern have a dedicated Customer Care Team to help our most vulnerable customers manage their accounts as effectively as possible. We always endeavour to identify customer’s vulnerabilities and take the appropriate action to help support them. Dealing with vulnerable customers requires complete flexibility and understanding of each customer’s situation. Some will wish to and be able to pay their account and we have a duty to help them do so. The business will always signpost customers to free debt advice charities where it is appropriate to do so.

Here at Lantern we monitor all our customer facing activities through quality

assurance. Our approach is to focus on compliant customer outcomes rather than traditional call scoring methods. We place the customer at the heart of everything we do by ensuring their treatment is at the forefront of our approach to account management.

We have taken time and effort to invest in a dedicated Learning & Development team who work with our customer service agents from Day 1 of their journey with Lantern. This helps us to ensure that our staff are engaging with our customers in an appropriate manner and also allows us to identify training needs where these may arise.

I feel the future is very much bright for Lantern as we move forward with our growth plans to be a leading light in debt purchase while maintaining our unwavering commitment to Treating Customers Fairly.

Our business has come a long way since I joined back in October 2014. We are now under new ownership, have

strengthened our senior team and grown steadily, however one thing that has never wavered is our approach to the customer and ensuring consistent fair outcomes.

Lantern’s approach to customer treatment focusses on engagement and understanding, open communication and fair customer outcomes. Our message to customers is that we are here to listen, to understand their circumstances and help provide them with a bespoke outcome that suits their needs.

We are committed to providing customers with a choice of contact methods. We appreciate that many customers do not wish to speak on the phone. In addition to letters and email correspondence Lantern provides a webchat facility which all our customers can use. We also offer access to our online portal which allows customers to view and update their account information as well as access documents such as credit agreements and statements of account. In this phase of our growth journey we are keen to embrace new technologies that aid efficiencies while at the same time enhance

Lantern’s approach to customer treatment focusses on engagement and understanding, open communication and fair customer outcomes.

CEO of Lantern, Denise Crossley discusses how the company implements TCF

www.cfa-uk.co.uk

Denise CrossleyDenise is a highly respected collections industry specialist, with significant experience in the field of debt recovery across a wide range of sectors and in recent

years has focussed on recoveries in the Debt Sale & Purchase market of the Alternative Lending sector. In October 2014 Denise was appointed CEO of Lantern, a specialist niche debt purchaser and led the business through FCA authorisation & new investment. Prior to joining Lantern, Denise owned and managed a number of successful DCA’s in the sector, all of which were ultimately acquired and then served for several years on the wider Exec Boards of those multi-nationals. Denise is a Fellow of the Chartered Institute of Credit Management and a Non-Executive Director of the Credit Services Association (CSA) where she has served on the Board for a number of years.

15

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16 May 2019 | Grosvenor House Hotel, London | #CreditAwards

#CreditAwards

Credit Awards 2019 marks its 20th year as the industry’s most respected awards programme. This is an important milestone within our heritage and we are proud to say that we have served the credit industry with distinction, integrity and excellence. We would love for you to join us for what is going to be a spectacular awards ceremony.

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Hosted by Jimmy Carr

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CFA Board of Directors

Richard FullerRichard’s 20-year career in retail financial services includes 15 years with DFC Global Corporation (to March 2008), where he served in various operational, functional, and senior management positions in both the UK and

Canada. Since 2010 he has been Managing Director of Cash Shop Limited, a 14-store chain based in Nottingham.

Chris deBoerChris is the President and CEO of GAIN Credit with more than 20 years of experience in sales, client partnerships and key account management. His experience has focused on technology solution sales comprising software, services, and analytics

across a number of industries. Prior to joining GC, Chris managed a team of industry professionals tasked with maintaining and growing relationships with Fair Isaac Corporation’s five largest customers.

Tim AnsonFor the last 23 years, Tim has worked in Financial Services. Between 1995 and 2006 he worked for HBOS plc in a number of disciplines including Operations Management, Strategic Projects and Product Management.

Tim joined Provident Financial in 2009 as Head of Business Strategy and Products. He became Commercial Director for CCD in September 2013 and is responsible for a number of functions including Marketing, Partnerships, Business Strategy, Product Management, Customer Insight, Call Centres, Credit Management & Analytics, and Media & Communications.

Sheraz AfzalSheraz Afzal is Risk and Compliance Director for The Money Shop, and Suttons & Robertsons, where he has responsibility for the oversight of the firm’s risk, compliance and regulatory relations. He has led significant programmes of

work to transform the UK business in order to achieve authorisation by the Financial Conduct Authority (FCA). Prior to this, Sheraz held a variety of senior roles at Welcome Financial Services (Cattles) where he was part of the team turning around the business, and then the run-off of the loan book.

Nick DrewNick Drew has more than 17 years’ experience in the financial and online payments industries. He joined CashEuroNet UK in 2014, leading all aspects of the business. Previously, he led software engineering activities at BT Ventures

and managed a series of FCA-regulated “e-money” businesses, including PSP International and ClickandBuy, part of the Deutsche Telekom Group. Nick studied Electronic Engineering and has several accreditations in the field of software development.

Adam FreemanAdam is the founder and Chief Executive Officer of Mr Lender, one of the UK’s leading High-Cost Short-Term Credit (HCSTC) firms. Adam has led the growth of Mr Lender over the last 10 years winning multiple awards for providing outstanding

levels of customer service. He has also participated in major industry events which has allowed him to become a pioneer of change within the HCSTC market, including appearing before Parliament to discuss the sector.

Scott GreeverScott currently serves as Elevate Credit International’s Managing Director and has been a part of the UK business for six years. Immediately prior, Scott led the technology teams for Elevate Credit in the US. Scott’s

28-year career includes positions in the Security Systems and Technology, Banking, Consulting, and Telecom industries.

Neil PoolNeil has worked in the cheque cashing and consumer finance sector since 1995. As a Director of Cash For Cheques, he served on the board of the BCCA in the early and mid-2000s, on the team that wrote the code of practice for cheque cashing

and payday lending. From 2007 Neil worked as a consultant to the online lending industry, working with UK, European and North American businesses. Most recently he served as CEO of MMP Financial, an online lender. Neil takes a very keen interest in any sport that does not involve horses, playing cricket regularly through the summer.

18 March 2019

As we were going to print the CFA was welcoming Asset Collections and Investigations as new members.

To appear on these pages you just need to be an Associate member of the CFA, so if you provide support, products or a service to our members, both lenders and brokers, joining could not be simpler.For further information please call Brian Corke on 07734 695715 or email brian.corke@cfa-uk.co.uk

Blue OwlBlue Owl is an online platform (with international patent pending) helping firms meet their regulatory requirements around electronic marketing – from FCA financial promotions regulation to GDPR (PECR/ePR). The latest feature to be added is a data consent widget which proves marketing consent for direct customer communication and/or 3rd party marketing. www.blueowl.net

Want a product or service?We have new Associate Members – check them all out

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FOR THE HOMEPAGE

Credit-connectCredit-connect is a unique one-stop online resource for professionals within the alternative credit lending and collections sector. The website shares segmented relevant news and information. From a marketing perspective, Credit Connect can help your company directly target niche business relationships with industry decision makers. In addition Credit Connect also produces the annual Credit & Collections Technology Awards. For more information, please visit www.credit-connect.co.uk or call 01622 437104.

Credit Resource Solutions Limited Credit Resource Solutions Limited offer contingent debt collections services unique to the industry. A new breed of debt collection agency with an innovative approach providing bespoke solutions for our clients. As dedicated investors in new technologies we drive customer contact through a number of platforms including telephony, E-mail, live webchat, SMS, IVR and Flash messaging giving us a diverse contact centre.

Credit Resource Solutions is a new breed of debt collection agency specialising in the short term lending market. Our dedicated investment in bespoke collections technologies (such as our Customer Portal myCRS, Chatbot CRiS and Client MI Site) make us stand out in the market as a key partner of online based lenders. We offer a complete range of collections services – starting with white-labelled early arrears management, through to traditional collections and ultimately litigation. Our unique administration service can also save you time in handling repayments for accounts under Debt Management Accounts. View our services in more detail at www.creditresourcesolutions.co.uk. Alternatively, we can be contacted via email: sales@creditresourcesolutions.co.uk or phone: 01422 324516.

ARC (Europe) LtdARC (Europe) Ltd is a fully authorised (FCA reference 716072) debt collection company that has served the financial services sector for over seventeen years. ARC comprises of a team of very experienced, highly skilled credit professionals from diverse backgrounds who are passionate about delivering great results for its clients whilst meeting the highest conduct standards in doing so. Speak to us now and see how we can help your business improve its profitability.

Mike Lock, Business Development Managermlock@arceuropeltd.co.uk01932 251010 (option2)

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SLL CapitalSLL Capital purchase historic debt up to 4 years old and can facilitate forward flow arrangements. We understand the importance of protecting a brand’s reputation and the FCA requirements in treating customers fairly and customer forbearance. We will consider all sizes of debt portfolios from 50 to 50,000 accounts. We have found that many companies prefer to “dip a toe in the water” when selling debt for the first time and we have found this approach very beneficial in getting to know each other. Call Mark or Nigel Bryant with any debt selling queries on 020 8253 4131 or 07799 103815.

LanternLantern is an industry-leading purchaser across a number of consumer finance sectors, with particular specialism in Alternative Lending. We have developed rigorous compliance processes and bespoke customer journeys, providing both lenders and customers with the highest level of assurance. Owned by Copper Street One (an entity of Copper Street Capital LLP), Lantern has financial expertise and substantial funding strength for growth. At Lantern, we happen to believe in doing it the right way and to provide an industry-leading, low risk purchasing service for performing and non-performing debt portfolios. Please contact Matt Subert, Director of Acquisitions, 07921 848829 matt.subert@lanternuk.com or Michelle Moore, Head of Sales & Client Relations, 07730 748153 michelle.moore@lanternuk.com www.lanternuk.com

EquifaxEquifax is a global information solutions company that uses unique data, innovative analytics, technology and industry expertise to power organisations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions. Headquartered in Atlanta, GA., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs 10,100 employees worldwide.

Hogan LovellsThe Hogan Lovells Financial Services Regulatory Consulting team offers a fresh approach to solving regulatory challenges supported by deep legal insight. Our regulatory consultants bring a unique perspective borne from holding senior positions in financial services firms, the Big Four, FOS and the FCA. We know that firms often look to advisors for support on regulatory challenges. The support they need typically requires both legal and regulatory interpretation and assurance alongside implementation and operational support. Hogan Lovells offers all of these services, providing firms with consistent support from beginning to end, through practical advice and guidance that is suitable and proportionate to their circumstances. Whether helping firms through authorisation, growth and diversification, resolution of historical issues, change implementation and management or the periodic independent monitoring needed to confirm alignment to existing regulation regulatory change, we work alongside clients to minimise impact to their BAU activities enabling them to adapt to and face regulatory challenges with confidence and certainty. For more information, please call 01932 251010 (option2).

CCAS CCAS is a leading UK consumer credit consultancy. We help firms put the right compliance measures in place; procedures that will stand up to FCA scrutiny without getting in the way of doing business as usual. You can rely on our technical knowledge and our experience of dealing with the regulator. We can also provide you with the necessary specialist resources, in a way that is flexible, scalable and meets your needs.

TruNarrative Safe Commerce is simpler when Fraud detection, Identity and Compliance are unified into a single approach.

We sort your good customers from villains, quickly enabling decisions with our financial crime management platform.

ConsumerFinanceAssociationcfa-uk.co.uk