CSA supports members with new model contract as ‘best practice’ for client negotiations
A new ‘model contract’ that helps debt collection agencies (DCAs) to negotiate terms to provide greater clarity and ensure the appropriate treatment of customers remains a core principal of the relationship, has been launched by the Credit Services Association (CSA), the voice of the UK debt collection industry.
Launched specifically for those members operating in the contingency space, the new contract proposes compensation, recall and termination clauses to provide balance and clarity to both parties, as well as a suggested schedule and Service Level Agreements (SLAs) that can be adapted according to need.
Nick Cherry, CSA Portfolio Director for DCAs, says that the contract will help CSA members of all sizes to agree fair terms in securing new business: “It is a designed as a template that members can review and adapt to their own needs, and then use as a framework for negotiation and agreement with clients to ensure we have a balanced contract protecting the interests of all parties, and ensuring the appropriate treatment of customers remains a core principal of the relationship.”
Sara de Tute, CSA Portfolio Director for Compliance, says that the new contract mirrors current thinking around best practice: “As well as consulting with members, we have also sought legal counsel to create a document with appropriate clauses and language to meet current FCA and other regulatory requirements,” she adds.
Although not mandatory, the CSA expects the new contract to act as an essential benchmark to which its members can refer: “The contract will give members even greater confidence of securing business against terms that are fair and transparent in the context of an increasingly complex and sophisticated collections landscape,” Nick concludes.
In addition to the contract, the CSA has also created a new glossary of terms to bring commonality in approach and understanding. Both the glossary and the new contract can be accessed via the members’ section of the CSA website.