Released every month our debt collection blog contains news, stories and tips to keep you informed.
Debtors in the UK are to benefit from a new scheme where they will be provided 60 days grace from debt collectors and Bailiffs.
In an article that appeared in The Sun, people who are struggling with significant debt to local government bodies, such as tax arrears, personal tax debts and benefit overpayments, will have their debts frozen with all enforcement action also stopped. The scheme, which is due to be launched in 2021, is designed to provide the financially disadvantaged with time to find long-term solutions to their financial problems. During the "breathing space" period, which is what the scheme is being called, those debtors must work with professional financial counsellors to reach solutions to get back on track with their repayments.
The "breathing space" program also includes a "statutory debt repayment plan" which allows those in debt to repay debt over a more manageable period and could see monthly repayments adjust according to their disposable income.
Debt charity, StepChange, revealed in April of this year that 657,000 people had sought their assistance in 2018 and applauded the moves by HM Treasury.
ZDNET is reporting that the debt collection agency, American Medical Collection Agency (AMCA), has filed for bankruptcy protection following a major data breach.
The breach, which is estimated to have occured from August 2018 to March 2019, resulted in the theft of information from corporate clients which included Sunrise Laboratories, BioReference Laboratories, LabCorp and Quest Diagnostics. The companies used a portal provided by AMCA to bill their medical customers which was later found to have been stolen and advertised for sale in dark web forums.
Following the disclosure of the breach multiple class-actions werre filed against not only AMCA but also the corporate clients with victims claiming that there were unnecessary delays in informing victims. According to the Chapter 11 declaration that was filed, AMCA first became aware of the breach when a number of credit cards were linked to fraudulent transactions. While the portal was closed and an investigation launched, the data breach caused AMCA to lose a number of clients and a massive reduction in business. ACMA has since been unable to determine exactly what data has been compromised and has been forced to absorb the cost in informing several million people by mail that their data may have been stolen. It is estimated that this alone has cost ACMA US$3.8 million forcing AMCA to take out a loan just to meet this expense.
AMCA will continue trading at this point in time as they seek to pay off their Creditors.
The Australian Financial Complaints Authority (AFCA) has recently released a snapshot of statistics following their first 5 months of operation.
The release of these statistics follows an article, 'Appalling Treatment': Bank Customers Making 5,900 Complaints a Month in the Sydney Morning Herald where the Chair of AFCA, Helen Coonan said in a speech allegedly seen by The Sydney Morning Herald and The Age, "Poor culture in financial institutions has been identified as the main culprit that permitted a slew of bad practices, appalling treatment of consumers and small businesses, and in many cases arrogant indifference to regulatory and compliance risk. Now almost seven months old, AFCA is playing an important part in restoring shattered community trust and confidence in the financial services sector."
The statistics show that between 01/11/0218 and 31/03/2019 AFCA -