Skip to content

Debt Collection News Roundup – August, 2018

Here at Access Credit Management we like to make sure we bring our readers interesting and relevant news about our industry so once a month we’ll be publishing a News Roundup.  This should keep you up to speed with all the important goings on within the sector so that you have a resource that keeps you fully informed of all the latest news. 


It would be interesting to know what you, the readers, think of the stories that feature here.  Please join in by adding your comments on our Facebook page, tweeting on Twitter or email us if you come across anything that you think we should include.

Our first item this month is about a group of GPs who have banded together to hire a commercial debt collection provider to recover sums owed for shift they worked via a locum agency.  Locums who worked for the agency claim that they are owed sums ranging from £8000 to more than £8,000 despite waiting for more than six months for payment to be settled.  The locum agency director admitted that the company has an estimated total outstanding amount owed to GPs of around £50,000, saying that cash flow problems have led to unpaid invoices.  Locums owed money by the company have received letters in the past month from an insolvency consultant to inform them that the company is still waiting for monies due which would enable it to make further payments. 

Moneysaving expert, Martin Lewis claims that Britain has a debt crisis that is rapidly heading towards big trouble.  With more than eight million people facing worrying levels of debt, the average British household now owes £58,000, including mortgage debt.  According to Lewis, many household don’t understand just how serious a problem debt can be, especially when faced with a crisis or change in circumstances. 

Meanwhile, the collapse of payday loan company Wonga warns that despite its collapse, customers are still required to repay any outstanding money.  The lending company has struggled following industry-wide complaints against payday loan companies who are accused of taking advantage of vulnerable people.  Repayments will be overseen by administrators in the short term despite the fact that claims management companies (which bring most of the claims against Wonga) are saying that chances of gaining back compensation are slim.  The Financial Conduct Authority (FCA) which regulates payday loans states that any payday loan has to be affordable, which means that you shouldn’t need to borrow more money in order to pay back the loan.  This means that those wishing to claim compensation would need to prove that their payday loans were unaffordable.  Payday loan companies came under pressure following a crackdown by the FCA in 2014, resulting in the collapse of some companies.  New regulations that came into force in January 2015 requires that loan companies carry out more stringent affordability checks, set a price cap that lowers the typical interest rate and ruling that nobody should ever have to repay more than twice the amount borrowed.