The Credit Services Association (CSA) has responded to calls from debt charities to halt all debt collection during Covid-19.
The CSA is the UK trade association for the debt collection industry and its members act of behalf of major financial institutions which include banks, credit card providers and Government bodies. The CSA also manages over 750,000 commercial accounts, mainly on behalf of small UK businesses. It to returns approximately £4 billion to the UK economy and £400 million is given back to SMEs.
Debt charities have urged the Chancellor to ‘write off’ £10bn worth out outstanding council tax and social security debts and consider a ‘debt freeze’ for those struggling on low incomes. The CSA has acknowledged that whilst a compassionate and understanding approach to debt collection in the current climate is needed, the impact on the economy of curtailing debt collection activity would have a monumental impact on the UK economy, putting many UK SMEs at risk.
Peter Wallwork, Chief Executive of Credit Services Association commented, “We need to resist calls for wholesale changes which may look like the answer but fail to take into account the bigger picture and the wider impact on society and our economy. We need to help the greatest number we can but in such a way that doesn’t damage the credit/customer ecosystem irrevocably. Nearly 800,000 UK businesses may fail over the next four weeks. This is not the time to prevent them from recovering cash owed to them.”
The CSA has written to its 250 members to remind them to show support and understanding during this time and was pleased that the industry responded stating that they had already taken proactive action to support their customers.
Controlaccount Plc is a founding member of the Credit Services Association and their guidelines underpin all our activities. Should you wish to discuss how our no collect, no fee debt recovery could help your business, contact us here or telephone 01527 549 522 for a no-obligation chat.
If you have debt worries or would like some help in understanding how Coronavirus affects your finances or benefits, please contact https://www.stepchange.org/.
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