agenda about fenca eu payment index interesting figures the reasons/the consequences recommendations...

Agenda

• About FENCA • EU payment index

• interesting figures• the reasons/the consequences• Recommendations

• Impact on collection business• Challenges

2NAPCA, „Debt Collection Market – Trends and Prospectives, 14.11.2013 Walter Koch, FENCA/KSV1870

About FENCA

48%

• Foundation: January 1993

• Seat: Brussels, Belgium

• Aims: - Protect and take care of the interests of the national member associations- Promote the development of European legislation within the debt collection industry

• about FENCA: 21 (45 Affiliate Members)1.600 debt collection agencies65.000 employees42 billions collected

• Board 5 membersAndreas Aumüller, PresidentMaria Marcopoulos, Executive Director

• please see: www.fenca.org

EU Payment Index


Payment index

24

14

30

Europe

Source: Eurostat

• EU 28 Population: 503 Million

• 20 Million companies (without financial sector)

• 125 Million employees

• 24 Languages

• 28+ sensitivities


Payment indexAverage payment duration andlate payment in days B2B

Source:intrum justitia-

European Payment Index 2013/KSV1870


Payment indexAverage payment duration andlate payment in days B2C




Payment indexAverage payment duration andlate payment in days Public sector



159

24

41

61

17090

50

8

4

109

80

33

20

34 27


Payment indexlate payment B2B

Late payment is a „cultural thing“

Late paymentthe reason forthe consequences


late payment Reason for late payment

46%

Reason for late payment B2B

financial problems 65%

intential late payment 45%

administrative ineffieciency 43%

disputes 7%

Reason for late payment B2C forgetting to pay 53% financial problems 49% intential late payment 37% unemployment 16% disputes 10%



Late payment between necessity and bad habit

The cheapest form of credit


Late payment the consequences

58%

Write off increases • From 2,8% to 3,0% EU everage

• Equals the value of 350 billion Euro

• 48% say, to cut investments• 49% see no growth• 90% think, situation will not change the following

12 months

• 52% get paid on time < 30 days• 87% say, their clients face financial troubles• Get paid late causes late payment• Public sector gives bad example

Future negativ

Vicious circle

350.000 Jobs lost 2012 due to late payment!

late payment – interesting figures


Late payment correlation to unemployment rate

46%



EU Commission

3,2%


Late payment Correlation to days in court (1st Instance)

46%


European Payment Index 2013/ KSV1870

CEPEJ www.coe.int

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Sw

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Latv

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Lith

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Cze

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Italy

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no. days duration no. days court


Late paymentcorrelation to collection costs

46%



Collection Costs inSpain, Greece, Portugal, Ireland or Italy de facto not enforceable

Collection Costs easy to enforce


Recommendations

48%

• There is a high degree of correlation b/t speed in court and late payment in a

given country: speed up the court process

• There is a high degree of corelation b/t cost for late payment (collection cost) days payment late: put or leave high collection cost in place

• there is a high degree of correlation b/t late payment of public and private sector: Public sector – pay on time!

• Availability of bank credit is important: implement measures to stabilise and incentivise banks

Impact on collection business


resent impact on collection business

Harmonization of Consumer rights

Late payment directive 2011/7/EU

- Between businesses (B2B)

- Public authorities (PA)

- Not for individuals (B2C)

Reform on data protection legislation


Impact on Collection Business

• Norway 2011

o 50% less collection costs

• Nederlands 2012

o New regulation based on the late payment directive

• Norway

• Nederlands

• Germany

• Austria

• Austria

o On the agenda 2012/2013 with no result

• Germany

o Old „system“ put into regulation after 2 years of uncertainty and heavy work


Challenges

• Implement rules/regulations/codes of conduct for collection agencies and execute them

• Collect as much data as you can

• bundle force - get together with other agencies

• Use the collected data for political and press work

• Convince Authorities that collections agencies are important in fighting late payment

• Convince Authorities that late payment is a damage for delay and thus the one who caused the damage - even it is a private person – has to bear the costs (interests and recovery costs - creditor’s as well as the one from collection agencies or lawyers)

• Try to get involved in the law making process

большое спасибо

Contact:Federation of European National Collection Associations FENCAWalter KochAvenue Adolphe Lacomblé 69-71Boite 51030 Bruxelles, Belgium

Telefon: +43 5 01870 8348Mail: [email protected]

agenda about fenca eu payment index interesting figures the reasons/the consequences recommendations...

Documents

debt collection market

walter koch

debt collection agencies

debt collection industry

collection businesschallenges

days b2b source

days b2c source

days public sector source