Salford Business Centre – The Highs and (more often that not!) the Lows

I thought that this month would be good time for a review of the Salford Business Centre as myself and my colleagues are continuing to experience problems with the service provided.

Unfortunately this would indicate no improvement has been made in respect of the service they provide despite the hard work of Brian Havercroft and the CCUA team which is somewhat disheartening.

A few incidents

Maybe I’m being too harsh on Salford and maybe improvements have been made but from where I’m sitting, I have yet to find them.

l’ll start with a few incidents that have occurred in our office over the last couple of months:

• Two requests for judgment sent in respect of two defendants. Only one Judgment Order received, so we chased to see if the second judgment request had been dealt with. In response we received a further copy of the Judgment Order we already had and a letter with no reference to our query.
• Request for judgment in respect of the first Defendant sent on 20 March 2013 and chased up on two occasions in April.  Received a response from Wakefield County Court on 7 May 2013 to advise judgment has not been entered in respect of the first Defendant. It appears Salford sent our letters chasing for the Judgment Order to Wakefield as the case had been transferred out for enforcement in respect of the second Defendant. Letter of complaint sent to Salford 10 May 2013.
• Judgment in default entered and application for Charging Order made. Subsequently received a Varied Order as it appears an admission form was received by them and not dealt with appropriately.

I’m sure the above examples are not isolated incidents but look forward to being corrected if they are.

The next step

However, moving on, the next step is to look at how the service can be improved and how we can assist with this process. Is further training required? Do they need more staff? Is the process of work allocation flawed?

One idea we came up with in our office was that it would be really useful if any correspondence could be logged on their system as soon as they receive it to ensure actions are carried out in chronological order.

At least then if we need to call them, they could inform us if they have received the relevant document and we can continue with action accordingly.

And on a positive note…

To finish on a positive note and to show light at the end of the tunnel, I have one example of very good service. A  Judgment Order was received whereby the defendant’s name was spelled incorrectly.

A telephone call was made to the Business Centre to inform them of this and two days later we received a informing us the incorrect spelling had been amended.

Maybe in a few months time, we can write a list of positive comments!

Author – Christine Power FCILEx – specialising in Debt Recovery at Lightfoots LLP

Update on Directive 2011/7/EU – Combating Late Payment in Commercial Transactions

The Directive

The Directive has been designed ‘to combat the culture of late payments in commercial transactions..’, however, it also indicates that companies should undertake their own checks to ensure customers are in a position to make payment and furthermore, protect themselves by preparing accurate and timely invoices.

The Consultation Process

The Department for Business, innovation and Skills (BIS) prepared and distributed a consultation which asked for views on four main areas. This resulted in 80 responses from individuals, businesses and their representatives which BIS advise was ‘satisfactory’ number for a consultation of this type.

Outcome

The Government response to the consultation has been published by BIS with the results as follows:

• Public sector payment terms will remain at the current 30 day payment period.
• The directive will be implemented by amending the existing Late Payment of Commercial Debts (Interest) Act 1998 rather than repealing and replacing it.
• The three tiered approach to compensation on debts will remain. (£40, £70 or £100 can be claimed dependant on the size of the debt).
• Any contract concluded before 16 March 2013 will be not be subject to the Directive.

Additional Information

Further questions were posed on the consultation to assess the impact of late payment and in particular where this may impact on the survival of a business. It appears from the responses received indicate that reduced cash flow leads to a lack of investment and in turn, results in increased borrowing.

Credit agencies reported that many small businesses were not aware of the Late Payment Interest Act and therefore were not claiming this. Once they became aware of the provisions of the act they started to use it.

Views from small businesses indicated that they are spending time chasing debts which could lead to a loss of profit as this is time that could be spent generating business.

Time for Change!

The changes will come into effect on 16 March 2013, but please note they will only affect contracts concluded after this date.

Written by Christine Power – Chartered Legal Executive

A review of debt recovery procedure in light of changes in the economic climate and the court system

In the past…

A responsible individual or company seeking to recover overdue monies, would no doubt, be minded to instruct a local firm of solicitors with a good Debt Recovery reputation. As we will see below, there is no reason for this to have changed.

Clients naturally want to recover the sums due to them in a timely fashion and if possible, with as little outlay as possible. However is this still possible bearing in mind the economic climate and the change to the way claims are issued?

In the past once a debt recovery instruction was received, the procedure would be;

• input instruction on case management system
• letter before claim sent to debtor
• if no response received, issue court proceedings

The claim form would be drafted and sent to the local court and if a last minute payment was made by the debtor later that day or the following morning, a quick call to the court would usually stop the claim being issued. If proceedings were issued, the Defendant may make contact to discuss the matter further or if no contact was made, judgment would be entered in default.

A suitable enforcement option would then be recommended and put into action and sometimes multiple enforcement methods would be used over time, if necessary.

Know your debtor

In the currently economic climate, debtors are less able to pay and on top of this, changes to the court system are causing delays with the claims procedure. Every debt recovery seminar or course will start with the phrase “manage your client’s expectations”. This is of paramount importance as we do not wish it to appear as though they are spending good money after bad with the possibility of no return.

To live up to our clients high expectations we must ensure we have been provided with as much information as possible in respect of the debt. As well as the usual information such as name, address and debt amount, further information is valuable.

Such information can include; has contact been made with the debtor in respect of the sums due? Is the relationship a long standing one? Do they have any information in respect of the debtors circumstances?

Getting started

The first step and maybe now the most important one is to prepare a clear, concise, informative letter before claim setting out clearly the information required under the Civil Procedure Rules. Getting a response to this letter is crucial to ascertain the debtors attitude to the debt and any information gleaned will assist us provide the client with suggestions as how best to proceed.

The issue of court proceedings is no longer dealt with at the local court with all claims being sent to Salford Business Centre.  At time of writing, Salford Business Centre is causing delays with the issue of claims and judgment orders. Upon calling the centre for updates or clarification, the staff do not appear to have any further information.

For us this is frustrating, however we must ensure our clients are aware of these problems should we encounter them and trust they will bear with us. The Civil Court Users Association is actively seeking improvement in the service and things can only get better with their involvement and input.

One of the main causes of upset for a creditor is, having obtained judgment, finding their choice of enforcement has not been successful despite them having spent more money.  Although some clients continue with action, regardless of whether or not the sums will be recovered, most clients want (and often need) to have the debt paid.

Statistics

The Ministry of Justice, Court Statistics for the first quarter of 2012 show that 10% fewer cases were issued than in the first quarter of 2011. This continues the downward trend from the peak in 2006. Enforcement has also decreased by 10% on the same period the previous year and they note the number is half the applications received in the first quarter of 2008.

In conclusion

In conclusion it would appear that the old debt recovery adages are still true namely ‘manage your clients expectations’ and ‘know your debtor’. Expectations are high from our Clients, therefore we must work closely with them so they may help us to help them. Debt Recovery actions are always most successful when action is taken swiftly and we can pre-empt any potential problems.

Also, as the statistics show fewer claims are being issued, a more effective letter before claim and the right level of experience in negotiations may ensure that a claim is now really only issued as a last resort.

Author – Christine Power is a Chartered Legal Executive who specialises in debt recovery.

A Happy New Year

December was a quieter month on the Association front.

Unfortunately I was unable to attend the Northern region meeting at the beginning of the month but understand it went well and the members brought up some useful ideas to take forward in our regular discussions with the Ministry of Justice.

A week later I attended the CCBC User Group meeting in Northampton. Lisa Keating, the Chair, has been beavering away behind the scenes in discussions with officials over the case numbering and bulk data transfer projects. Certainly there has been much movement in the plans and Lisa and Andrew Aspell, the vice chair, should be congratulated on their efforts to date in ensuring the users receive the best service possible.

Just before Christmas the Ministry produced a paper on its digital strategy.  Under the theme of transforming our services they will start with four exemplar digital services for delivery by 2015 amongst which are civil claims (money & possession claims) and fee payment starting with employment tribunal fees). Also under this theme they intend to digitally redesign all other services, prioritising those handling over 100,000 transactions per year, to meet the new digital by default service standard.

The roadmap they have produced shows that in 2013 in civil claims the redesign starts with possession claims and then moves onto money claims. Fee payment with employment tribunal fees first phase by July 2013.

Transactions for 2013 will include credit card payment on money/possession claims, registration and authentication of money claims and secure bulk data. These last two have already been subject to meetings between users and officials bearing in mind new court numbering will need to be introduced at the beginning of 2014 and which the Association through the CCBC User Group has been monitoring and assisting.

The document shows the Association as one of the special interest group stakeholders and we will ensure close contact is maintained with HMCTS/MOJ to ensure the views and interests of members are well represented.

Next month sees meetings beginning again with officials so any issues you may have please let me know through the office on claires@ccua.org.uk

Troubled times

November saw two meetings at Petty France; firstly our regular meeting with HMCTS followed by a meeting with policy officials at the MOJ a few days later.

The HMCTS meeting went well although we did express our concerns over the CCMCC at Salford, for full details see my notes of the meeting on the members linked in site; the minutes are produced by HMCTS and be available shortly.

Having stayed overnight in London, next day I attended the London/South East Regional meeting of the Association in the morning. It was good to see potential new members at the meeting and also to be approached by current members volunteering their assistance.

If you are reading this note and are not yet a member then contact our administrator on claires@ccua.org.uk to obtain details of the next regional meeting closest to your office and come along to see what goes on. You never know you may find it interesting and want to join the association to have your voice heard.

After the regional meeting I got the train to Manchester for the Debt Recovery Awards, the host, Ruby Wax, was very good and the evening went well. Well done to all those who were nominated for the awards and congratulations to the winners. As a judge I can say there were some very good entries and the discussions took some time.

The next day saw me back on the train to London to visit clients and then in the evening attending the 125^th anniversary dinner of the High Court Enforcement Officers Association, a very good event in excellent surroundings. Finally I got home on the Saturday lunchtime, just a shame you cannot get train miles as I would have clocked up a few.

The meeting with MOJ was to discuss the Association consultation on the increase in the small claims limit. The meeting did not go well as it is clearly government policy to increase the limit despite the views of the professionals that to increase it will cause major issues.

We have asked for a meeting with the Minister and the Chairman of the Legal & Technical committee, Jeremy Chaplin is driving this forward.

The day following this meeting I chaired the CCUA council meeting and it was good to see two of the regional vice chairs in attendance, together with the vice chair of the CCBC user group.

We received confirmation that our next House of Lords dinner has been set for Monday 8^th April; we are currently awaiting confirmation of the guest speaker, further details to follow.

After the formal business discussion took place on plans for the Association and ideas that came forward show that the 25^th anniversary year will be very productive in ensuring the interests of users are put before the government. We have a committed group of officers and they are as keen as I am to see that we get value for money for the fees we pay.

As this is the last note before the end of the year may I take this opportunity to wish you all a very merry Christmas and a happy (and prosperous) New Year.

October: A month of conferences, meetings and a trip down under.

October has been a very busy month starting with the CCRi conference in London where I chaired the Litigation stream.

The Association had a stand ably manned (if that is the correct word) by Jacky Cooper and it was good to meet so many members.

A week later I attended the South West regional meeting and am pleased to confirm that Kat Quinton has now taken on the mantle as vice chairman to assist Martin Wood. Whilst it may only be a small group they are very keen and I am certain Martin and Kat will begin to generate more interest in the area.

Of course the big event was our conference on 16^th and I am very grateful to all those who took part and the organising committee. The comments from those who attended were extremely favourable.  I am certain everyone finds it useful to hear from the officials the reasons for problems and the proposals to improve the service. The survey on users attitudes to the Courts has received considerable coverage from the trade press and will be something we will be doing on a regular basis; thanks to those who took the trouble to complete it.

The conference dinner was an excellent occasion and the guest speaker Adam Parsons, the broadcaster, regaled us with stories from the Olympics. It was however interesting to hear that as a claimant he had dealings with the county court and he was far from complimentary about their service; unfortunately he had suffered at the hands of Central London and all those present sympathised with him.

Once the dinner was over the delegates retired to the bar but sadly as I had to go to London early the next morning I was unable to stay until the end (whatever time that was).

My working month then ended as the following week my wife and I jetted off to Melbourne to visit our son and daughter in law; and excellent time was had especially visiting the wine cellars in the Yarra Valley, but that is another story.

November sees meetings planned with the Ministry; firstly on our bi monthly liaison group meeting and secondly to discuss our paper on Small Claims. We have asked to see the Minister to provide her with our views on that and on the service in general, we hope to have the audience in the near future.

The CCUA Conference 2012 – nearly there…

Nearly there

With days to the Annual conference everything looks to be moving along smoothly.

The list of speakers is excellent and I am sure there will be lively debate; Amir Ali and his team have done very well to put together such a vibrant programme.

At the beginning of the month a meeting was held with HMCTS over the number of increasing issues that appeared to be coming from members over the service being received from the Courts in all areas. We provided them with general views and they appeared to accept that they could do much better. Hopefully we will hear more from the HMCTS representatives at the conference on their plans to improve the service.

I attended the Credit Services Association conference as a guest and found it most interesting; the keynote speaker, a financial journalist, had some very sombre views on the economy. I then attended the Northern regional meeting the following week and some very useful ideas came from the group meetings that were held and I am certain the regional chairman will act on them.

Council met on 18th September and details will be on the members section shortly. I advised council that, subject to being elected again, I propose to make next year my last one as Chairman. It is time to hand over to new blood to drive the Association further forward.

The following day the long awaited meeting of the Bulk Centre user group was held and delegates were given the opportunity to hear what is proposed on case numbering and bulk transfer. A smaller group is being set up to consider the issues and is a cross section of the industries and firms represented at the meeting. In addition another meeting for software houses is proposed. From the Association point of view it is a shame that such a meeting was not held many months ago as it appears HMCTS may be on a tight timetable when it comes to IT work being carried out. The last thing users want is for something to be rushed through that helps no-one.

The proposal in the consultation paper on the opposition to the increase in small claims issued by the Association has received a considerable amount of support. Only two members did not accept the proposals but all others did and we have also received valuable support from the Institute of Credit Management, Law Society, CILEX and the Bar Council. Jeremy Chaplin the chairman of the Legal & Technical Committee has produced a very detailed argument in opposition to the increase. We are now looking to arrange a meeting with the Ministry of Justice and then the new Minister.

Finally at the end of the month the Central region meeting was most enjoyable with a talk from barrister Simon Clegg at St Philips Chambers on the imminent Jackson reforms, much food for thought.

Hopefully I will see many of you at the conference on Tuesday.