New Debt Collection and Enforcement Procedures.

We have today (26.09.07) been asked to fill in a consultation paper on a change in Debt collection and recovery procedures, some of which will bring us in line with Europe.  The paper covered all aspects of how debtors behave through to the various options available to us and them when we chase them for payment. They went as far as to say which current type of action have achieved the best results.  (Ironically the best results were achieved by business' like DRS).

We have stated that we agree with PAN (pre-action notices), the details contained within them is similar to our letter before action, therefore the change across to these will not affect us.  It may affect a few companies who use a number of repeat letters for the same debtor.

We have also agreed to the European CPO (Claims Payment Order) this really is the equivalent to instructing the Bailiff or Sheriff.  The main difference being that after the issue of a PAN, the CPO can be started without the need to issue proceedings at court.  This will effectively save a certain amount of time, money and the excuses we sometimes hear from debtors.

On the whole we welcome this change and hope to see it take effect.