The Credit Services Association (CSA) is the only National Association in the UK for companies active in relation to unpaid credit accounts; debt recovery agencies, tracing and allied professional services.
The latest CSA estimates of UK consumer debt, based on figures being reported by collection companies, shows that the current amount passed for collection exceeds £58bn.
This is the first time that the industry body has published the full extent of outstanding consumer debt being handled by member companies and the figures show that over £1.2bn was successfully collected in the second half of last year alone – so the collections process is working for many, helping to recover debts that might once have just been written off.
But the overall figures are still shocking – over £1,000 for every single man, woman, and child in the UK in uncollected debt being processed by the various agencies. Six months earlier the figure was £52bn, indicating that the volume of debt passed for collection is increasing at a steady pace.
The uncertain economy is one reason for this increase. The UK had been steadily growing again since the economic meltdown of 2007/2008, but has recently dipped back into recession. This uncertainty is certainly not helping, but the efficiency of the collections process when handled professionally can also be seen as a positive contribution back to companies when they need it most.
Great transparency over collections data can only be a good thing for the industry as a whole; we are all doing our bit to help those organisations suffering the cash flow constraint of unpaid debt.
Photo by Blatant World licensed under Creative Commons