Engaging on the FCA’s Product Sales Data consultation

Published 24 November 2023

Anyone in consumer credit will likely know about the FCA’s recent consultation on Product Sales Data (PSD) reporting. The FCA has stated that the proposals aim to collect further data from the market to inform their supervisory and policy approach. The proposals would mean data would be provided to the FCA on every loan issued across credit cards, motor finance, etc. That includes information about every customer. The FCA themselves say that 120 million credit agreements currently cover around 40 million individuals. They are also requesting “back book” data on every agreement that is currently live. This is a massive amount of data for the regulator to hold. We have concerns across a range of areas The CCTA has concerns not only about the regulatory burden that reporting on this scale will place on firms (with smaller firms likely to be disproportionally affected) but also if it is right or safe for a financial regulator to hold this level of data. This clashes with the ideas that are developing in financial services around data protection. We continue to talk about data minimisation, seeking out and keeping only the personal information required. If these plans go ahead, the level of data the financial regulator will hold about the UK public and their intimate financial details will be a step change. As part of our advocacy work on the issue, we have been raising these concerns with various stakeholders since the publication of the consultation and directly with the regulator. That work has included journalists who cover financial services and regulation. We briefed the Sunday Times about the proposals and what they would mean for consumers. Along with our briefings, we supplied comments about the impact the data reporting would have on alternative lending. This week, we saw a piece published in the Sunday Times, which can be read here. (behind paywall). It picks up on the main CCTA concerns about the proposals and the additional burden likely to fall on small firms. The association is also quoted. The piece was also picked up the CityAM, providing some extra coverage of our arguments. More to be done The official consultation has now closed. However, as part of our continuing work on the issue, we ask members to review the more detailed proposals. Please share concerns in terms of what is workable. We will be looking to raise these directly with the FCA in the coming weeks.

CS Lending Summit – challenges in consumer credit

Published 17 November 2023

In a post-pandemic world, there has been a shift in the way people attend industry events. So, it was great to participate in the CS Lending Summit operated by Credit Strategy. For us, there was interest in how Consumer Duty continues to be a mandatory discussion point and how there is more focus on access to credit. CS Lending Summit has long been a chance to review the lending agenda and look ahead. This was no different as we heard about some of the significant issues. There was a great session on what is happening regarding the use of credit, especially during this period of economic volatility. Consumer Duty is high on today’s agenda. I was delighted to be asked to contribute as a speaker and to chair the Consumer Duty session. Consumer Duty has been a priority for the Consumer Credit Trade Association and our members for the last few years. Discussions about what the Consumer Duty might be in practice, consultations and implementation programmes have been challenging. It was interesting to hear from various firms about how they approached this matter. The examples included considerable changes to credit products alongside increased communication and engagement. Consumer Duty is not just a matter for today’s agenda. We know it will be with us for the foreseeable future. One of the questions I wanted to ask is what the next phase might look like. Everyone can point to issues within their sector that might be reviewed through this new prism. We have already seen the FCA intervene with the banks regarding passing on interest rate rises to savers. There are several other areas where the FCA has started to talk about whether a particular approach might not fit with Consumer Duty. I think that we will see more of this. Will this be a way to pick up on issues the FCA feels are untidy and make changes without specific rules or consultation? Access to credit is always on our agenda. We are always interested in discussions about access to credit. Our founding members formed our association over a century ago to push out new credit products to expand access to communities underserved by mainstream lenders. So it was interesting to hear Steve Brigham of Moneyline talking about their experience as the “lender of last resort”. Many of the issues they face seem very familiar. However, I think it is fair to say that many of our members tend to serve a higher-income grouping. Anyone with a view of what is happening can see that illegal lending is increasing. The research from Fair4All estimates that about three million people have used loan sharks over the last three years. We know that the Centre for Social Justice came up with just over a million people currently involved with illegal lenders. All the panellists picked up on the growth of Buy Now Pay Later. Expanding outside of FCA regulation. By now, we have enough research to suggest that BNPL has filled part of …

Supporting Talk Money Week

Published 09 November 2023

We are now well into Talk Money Week 2023 run by the Money and Pensions Service (MaPs) which we are supporting. The purpose of Money Talk Week is to break the taboo of talking about money and encourage individuals to speak about their finances, something we still seem to struggle with here in UK. It is an annual campaign that organisations of all kinds can get involved with. Despite the current spotlight on household finances, talking about money remains a taboo. People find it difficult to open up about money worries, and don’t access the expert advice available to help them find a way forward. This is a shame because the research shows that when people do talk about their finances, they make better and less risky financial decisions, and feel less stressed and anxious. By talking more about money, we can build financial confidence and resilience to face income shocks, life events and whatever the future holds. This year MaPs are encouraging consumers to do one thing that could help improve their financial wellbeing- it could be checking your pension or talking to your child about pocket money. Think about what your one thing could be. It’s no secret that many consumers are currently struggling with the cost-of-living pressures. It keeps coming up in the press and also got a mention in this week’s Kings speech. As we head into the winter months which often come with an increase in spending, lenders will need to think about how they can proactively engage with their customers to support them if required. Part of that is about making sure that individuals know where to turn to for advice. The Money Helper website contains a huge range of information, tools, and guidance about all aspects of money so is a great place to start. Here at the CCTA we are always keen to support external campaigns that fit with the vision of our association. At the heart of the CCTA is a commitment by our members to lend responsibly. It is important that consumers should only borrow when it is in their best interests to do so. This is also part of a wider debate about the need for access to credit. When used appropriately credit is an important tool to help individuals manage their finances. We need to ensure there are range of products that meet the needs of consumers to help them manage their finances effectively.

Regulation of BNPL – an update

Published 06 November 2023

We think the FCA announcement on Buy Now Pay Later (BNPL) activity is interesting for several reasons. First, it is fascinating that over 1 in 4 adults had used BNPL in the second half of last year. This raises some critical questions about the regulation of BNPL. The FCA believes about 14 million people used BNPL in the second half of last year (2022). That is about 27% of the population over six months, compared with 17% in the preceding twelve months. If we want to mess around with the statistics, then that suggests that we are heading towards doubling earlier figures. BNPL increases – meanwhile, credit supply drops I think that points to a tangible need for credit when the credit supply for many communities is withdrawn. We know from our work that we have seen a reduction, especially in working-class communities. Home-collected credit is a product that tens of millions of individuals have used over the last century. Over the last few years, we have seen it drop around 80%-90% in lending. That drop is due to regulatory intervention while demand remains as high as ever. Unfortunately, the consequence of that is the growth of illegal lending. Fair4All did great research in their report, As One Door Closes. They built upon the work of the Centre for Social Justice. In their study, they revealed that an estimated 1.1 million people in England use illegal lenders. Like all credit products, BNPL can deliver significant benefits for UK families. It can help close the gap when appropriately used. We need a more significant discussion about access to credit and supply and demand. The regulation of BNPL Of course, another standout is that the FCA has again used powers under the Consumer Rights Act 2015. That is because BNPL continues to be unregulated like other credit products. A more cynical observer might suggest these concerns around the contract are not the most significant issues when discussing BNPL. There are bigger matters. And for transparency, the Consumer Credit Trade Association does have members that provide BNPL products. It is a small group within our broader membership, but it does mean we hear different perspectives. From that, we know we need to have more certainty about the future of BNPL regulation. That is fair to both the lenders and the borrowers. There has been some public debate about the regulation of BNPL. How will BNPL be regulated? Should it be handled differently from other parts of consumer credit? Suppose we are considering a change of approach to regulating credit for BNPL. If we are thinking of how to control other innovative products. Then, we need to talk about a level regulatory playing field. Unfortunately, the current credit market does not work for many families in the UK.

Quick off the mark
Why consumers need self-service with a safety net

Published 18 July 2023

Digitalisation of operations is not a black and white solution, and there will always be a need for human interaction which is crucial for businesses to manage debt and arrears conversations. However, automation of processes can reduce costs, and it can positively enrich the relationship you have with your customers and provide them with more confidence to have a meaningful interaction with your business. Advantages arise on the company’s side and on the customer’s side. PROS FOR COMPANIES • Cost and Time Savings: Self-service solutions streamline processes, reducing operational costs and freeing up resources for more valuable tasks. • Improved Efficiency: Automated self-service platforms allow for faster and more efficient handling of customer requests, leading to increased productivity. • Data-Driven Insights: Self-service systems generate valuable data that can be analyzed to gain insights into customer behavior, preferences, and trends, enabling better decision-making and targeted marketing strategies. • Scalability: Self-service options can easily accommodate a growing customer base without requiring a proportional increase in staffing or infrastructure. PROS FOR THE CUSTOMER • Convenience and Accessibility: Self-service options provide customers with quick and easy access to the services they need, anytime and anywhere, without the need to wait for assistance. • Empowerment and Control: Self-service puts customers in charge of their interactions, allowing them to manage their needs independently and at their own pace. • Faster Resolutions: With self-service, customers can find answers to their queries or resolve issues more swiftly, without the need to wait for a support agent’s availability. • Personalization and Tailored Experiences: Self-service platforms can leverage customer data to deliver personalized recommendations and solutions, enhancing the overall customer experience and satisfaction. Aryza, the market leader in process automation, launched Aryza Recover as a digital response to COVID-19. This tool aids customers facing payment difficulties by suggesting alternative solutions like ‘breathing space’ or debt management. It enables businesses to assess customers’ ability to pay and propose suitable options. Businesses have embraced self-service solutions for managing debt, maintaining personalized experiences. Surprisingly, 65-80% of consumers using self-help methods set up payment plans. However, some customers prefer agent assistance, necessitating systems that offer the same benefits. Personalized customer service focusing on individual needs is crucial. For self-service customers, Aryza offers a hybrid “agent-assisted” approach. Consumers transition into agent mode when struggling, flagged as vulnerable, or desiring human interaction. Automated solutions outperform traditional debt collection methods, with over 30% of consumers engaging and 20% making payments when four or more payments behind. In the current era, digital systems combine efficiency, intimacy, and operational automation, preserving customer relationships. Integration is quick, achieving significant cost savings while maintaining customer satisfaction.

FCA Consumer Duty
Empowering consumers in debt collection

Published 18 July 2023

Dealing with debt can be an overwhelming and stressful experience for many people. In December 2020, as we all know, the Financial Conduct Authority (FCA) proposed a new set of rules called the Consumer Duty, with the aim of bolstering consumer protection and promoting responsible practices in debt collection. The new Consumer Duty purpose was created to reshape the relationship between firms and consumers, ensuring fair treatment and empowering consumers to make informed decisions throughout the collections process. Let’s look at the three core elements of the Consumer Duty: 1. Duty of Care: Debt collection companies and teams are obligated to act in the best interests of consumers, taking reasonable steps to prevent harm. Understanding consumers’ circumstances and vulnerabilities becomes crucial, emphasising empathy and respect. 2. Duty of Exercise: Skill, Care, and Diligence: Individuals involved in debt collection should possess the necessary skills and knowledge to provide appropriate advice and support. Consumers must be well-informed about their rights, repayment options, and the consequences of their decisions. 3. Duty to Communicate Clearly and Transparently: Clear, fair, and non-misleading communication is essential. Debt collection agencies, purchasers, and internal functions should present information in a manner easily understood by consumers, avoiding jargon and complex terminology. Explaining fees, charges, and repayment options clearly enables consumers to make informed choices. The introduction of the Consumer Duty holds significant implications for debt collection companies and teams. Here are key aspects we need to consider: 1. Consumer-Centric Approach: Shifting the mindset to prioritize consumers’ best interests, considering their circumstances, vulnerabilities, and affordability. This approach encourages fair treatment and empowers consumers to make informed decisions about their debts. 2. Improved Training and Processes: Investing in training programs to ensure staff members possess the necessary skills and knowledge to comply with the Consumer Duty. Implementing robust processes to identify and address consumers’ vulnerabilities appropriately. 3. Enhanced Communication Practices: Clear and transparent communication is vital. Debt collection interactions should use plain language, avoiding technical jargon that may confuse consumers. Providing accurate and understandable information about debts, repayment options, and consequences is essential. 4. Adapting to Vulnerable Consumers’ Needs: Proactively identifying and supporting vulnerable consumers, rather than reactively. Establishing mechanisms to assess vulnerability and provide appropriate assistance, treating individuals with sensitivity and compassion. In conclusion, the FCAs Consumer Duty represents a significant step forward in regulating debt collection companies and teams. By prioritising consumer interests, clear communication, and responsible lending practices, the Consumer Duty aims to ensure fair treatment and protect consumers in debt. This introduction reinforces the importance of empathy, transparency, and accountability in the debt collection process, ultimately leading to better outcomes for consumers in need of assistance.

Contracting for cloud
What to consider in a changing regulatory environrment

Published 18 July 2023

Financial services institutions, like many other businesses outside of the sector, continue to rely on cloud-based solutions to drive efficiencies, streamline processes and improve customer experience. This is despite lingering cybersecurity and data privacy concerns that are rooted in the resilience of such tools (and potential consequences if they were to fail). This risk inherent in swathes of individual’s data sitting on third party – often overseas – databases remains undoubtedly at the forefront of regulators, both here in the UK as well as on the continent. Hot on the heels of the Digital Operational Resilience Act in the EU, further developments look to be in the horizon domestically with lawmakers setting their sights on the ‘critical third parties’ (that supply cloud services to financial services firms) in particular. And yet, adoption of cloud technologies remains almost a necessity in retaining efficiency of service. We’ll be keeping a close eye on this space over the next twelve months, but as the legal landscape continues to unfold here are a few issues for financial service companies looking to move to cloud based solutions to bear in mind: DUE DILIGENCE IS KEY Undertake detailed DD on data security, control and exit. Consider the nature of the data set and any specific form you may need it in on exit. When it comes to termination, it pays to agree that post-termination support will be provided (even if there is an agreed cost for it). PICK THE RIGHT BATTLES IN THE CONTRACT NEGOTIATION Though standard does not necessarily mean “fixed”, expectations need to be realistic when it comes to negotiation (services are largely standardised and, as such, providers need to maintain a consistent risk profile across their platform). That being said, suppliers will countenance movement of termination rights for default, enhanced service credit regimes and increased caps for data breaches, especially where customers are paying for an enhanced / premium” service package or paying for additional levels of support. OBTAIN COMMITMENTS ON INFORMATION SECURITY STANDARDS A key selling point for providers is the operational security their system offers; that being the case, ask for it to be warranted. BE PROACTIVE AROUND BCDR Test and document operational resilience plans, outlining the steps your business has taken to ensure security of the data that is being processed by the cloud provider, the alternative providers in event of failure and the steps that would need to be taken on termination of the arrangement. Ensure that any providers have similar business continuity / disaster recovery plans in place and get contractual commitments that back them up where possible.

Time for change?
The benefits of a Fair Banking Act

Published 18 July 2023

The music fan in me is tempted to say that the release of The Clash’s eponymous debut album was the best thing to happen in 1977. But putting my professional hat on, I must note another significant release that year: the Community Reinvestment Act, by the US Congress. A near half-century later, this federal law has inspired a new campaign designed to improve financial inclusion in the UK. Fair for You, the social lender I lead, is pleased to have added its signature to the Fair Banking for All Campaign, alongside credit union body ABCUL, CDFI network Responsible Finance and others. The coalition is calling for a Fair Banking Act, mirroring much of that US law. This would respond to the financial exclusion with which CCTA members will be familiar. Right now, banks’ refusal to provide services such as loans, overdrafts or even basic bank accounts to customers it considers ‘high risk’ is driving people towards loan sharks and other hardships. Public polling for this Campaign confirms that most Britons see this as unfair, and that the majority would support a law tackling this. The Community Reinvestment Act compels American banks to invest in community, non-profit or good cause organisations, including affordable credit. Initially seen by the banks as a simple ‘regulatory must-do’, they have since realised that it provides various reputational, customer and financial benefits. A Fair Banking Act would require mainstream banks in the UK to report on their performance on financial exclusion, through a transparent, publicly available, framework. It would institute a system for clear ratings, showing which banks are doing well and which need to improve on this front. Investment in affordable credit providers would be one way for it to improve these ratings. The Campaign is pleased that it has already attracted interest from various politicians and representatives from the banking sector. Momentum is building. If enacted, the legislation should create opportunities for some CCTA members, such as Fair for You, to receive investment from banks, or to partner with or launch joint ventures with them. It would also create changes in the credit market, altering the volume or profile of customers coming to CCTA members. I am aware that some CCTA members will raise their eyebrows at these potential developments, and my door is very much open to anyone wanting to discuss this campaign, and why we are part of it. But I make no apology for our overarching mission of ensuring affordable, ethical credit is as widespread as possible. And ultimately, I hope that all CCTA members would agree that a diverse, thriving credit market in which there is a healthy mix of different providers is good for consumers, society as a whole, and the credit industry itself. And this is exactly what a Fair Banking Act hopes to encourage.

Revving up efficiency
unlocking operational success for car finance intermediaries

Published 18 July 2023

The UK car finance industry faces several challenges impacting business performance and profitability. One of the biggest challenges is the increasing competition within the market. With a rising number of companies entering the market, it is becoming increasingly difficult for car finance intermediaries to stand out and attract customers. Another challenge is the rising cost of borrowing. Interest rates have steadily increased over the past few years, making it more expensive for consumers to finance car purchases. This is particularly difficult for those with lower credit scores, who may be charged higher interest rates. Within the industry, there are also issues with flawed processes and sales efficiencies. Many companies still use outdated methods and systems, which can be slow and cumbersome. Sales efficiencies are also an issue, as many companies need help to target, reach, and convert their potential customers effectively. On average, car finance companies typically have a conversion rate of around 5% to 15% on loan applications. Car finance companies must invest in modern, efficient processes and systems to address challenges. This includes adopting new technologies such as artificial intelligence and automation, which can help streamline operations and improve efficiency. HOW TO IMPROVE EFFICIENCIES WITHIN YOUR BUSINESS • Automation: Automating manual tasks can help reduce errors and improve efficiency. For example, car finance companies can use automation tools to streamline the application process, handle customer queries, and manage loan payments. • Digitalisation: Adopting digital technologies can help car finance intermediaries reduce paper usage, speed up processes, and improve customer experience. For example, they can use online platforms to allow customers to apply for loans, make payments, and track their loan status. • Data analytics: Using data analytics, car finance intermediaries can gain insights into customer behaviour and preferences, which can help them tailor their products and services to meet customer needs better. This can help improve customer retention and increase conversions. • Collaboration: Collaborating with partners such as car dealerships, lenders, and banks can help car finance intermediaries access a wider pool of products and expand their reach. This can also help them offer a broader range of products and services, improving customer satisfaction. THE BENEFITS OF IMPLEMENTING THESE STRATEGIES • Automation: Intermediaries can save time and reduce costs by reducing the need for manual labour. • Digitalisation: Digitalisation can help intermediaries reach more customers, offer more products, and improve efficiency. • Data analytics: Data analytics can help car finance intermediaries make informed decisions based on real-time data, leading to improved efficiency and better customer targeting. • Collaboration: Collaboration can help car finance intermediaries expand their reach and access a wider pool of customers whilst offering a broader range of products and services, increasing customer satisfaction.

Know your partner
Taking pride in client partnerships

Published 18 July 2023

You wouldn’t get married at first sight (unless of course you’re on the reality TV show of the same name), nor would you choose a builder to renovate your house, without first doing research. It’s important you knew about their background, their quality levels, their culture and moral compass – and that they are aligned with yours. They are all the same reasons for choosing a partner to look after your most important asset, your customers. With the impending Consumer Duty, it’s important to choose a partner you can trust, who will be transparent and supportive of your focus on ensuring customers have the right experience. GETTING TO KNOW YOU A good partner will spend time working with you and learning about your business and customer base. It matters that the customer doesn’t feel like they’ve had a disruptive journey, and that your selected partner understands what they have been through and what their current circumstances are. You should also be actively encouraged to ask questions; you have your area of expertise, and your partner has theirs. After all, that’s why you are working with them. Ask any questions you have and where possible make an onsite visit to get a feel for the business and the culture within it. A slide deck can paint any picture the creator wants, but a physical visit to meet a cross-section of people across the business really gives you a feel for what they’re about. CAN I WORK WITH THIS PERSON? As much as that might sound like going back to school and choosing your friends, it is important to build up a relationship of trust with your partner. Transactional is all very well, but it doesn’t help when things get sticky, or a collegiate approach is needed. Find a partner you like, and who you know you’ll be able to have honest conversations with around service and performance, without it jeopardising your future working relationship. GET FEEDBACK Do they have any case studies? Can you speak to any of their existing clients? Your partner needs to be transparent from the outset and should be delighted to share contacts across their existing client base, assuming they are delivering what they said they would. One point here though – once you’ve chosen your partner, please also support them in offering to be a reference if they need one. HOW ARE THEY GOING TO ACHIEVE THEIR RESULT? Potentially a contentious point, and pricing will always be an important factor, but you know the saying; “if something seems too good to be true, it probably is”. When you are getting low servicing rates or high sale prices, ask yourself, ‘how are they going to compliantly and fairly get their returns based on the valuation they’ve given?’, ‘what controls do I need to put in place to ensure my customer is protected and I’m continuing to follow the Consumer Duty rules and guidance?’ At Lantern Group we take great pride on our client partnerships. We are supportive …

Reconnecting with customers in arrears
Why we need a data driven approach

Published 18 July 2023

In the current economic climate, with all of its complexities, a ‘one size fits all’ approach to consumer debt recovery isn’t effective for businesses, their customers and clients. However, a fully tailored approach to each and every customer isn’t possible – or at least not without access to quality data. With the FCA’s Consumer Duty bringing a focus on enhancing the customer journey, ensuring collections processes are as joined-up and consistent as possible to deliver fair outcomes, is key. Delivering this doesn’t just serve the interests of the consumer; it also benefits creditors to work with partners who can offer a data-driven, end-to-end service. THE WHOLE DEBT LIFECYCLE With more and more focus on the cost of living, it’s inevitable customers will be faced with prioritising different types of debt from credit cards, loans and mortgages to utilities and council tax, and it’s crucial they are supported across the whole debt lifecycle, regardless of who is supporting their circumstance. That journey is becoming more and more complex for many. When it comes to reconnecting with customers who creditors have lost touch with, we mustn’t treat it like a starting point. All that has gone before should be taken into account to inform the approach and verify any information that is available before reaching out, especially with when considering potential vulnerability which continues to be prevalent and can take many forms. THE BENEFIT OF INSIGHT Insight is a wonderful thing. Using high quality, comprehensive data to track the whole customer journey and inform appropriate action and next steps results in better, fairer customer outcomes and saves all involved time and resource. It’s a win win. This has become a ‘given’ in mainstream collections but field-based services are largely still traditional and there often isn’t a joined-up approach. Reconnection and verification rarely needs to start with a blank sheet of paper. Analysing all the data available will significantly improve decisioning, effectiveness and appropriateness to determine the right channel to be deployed. OMNI-PRESENT OMNI-CHANNEL An end-to-end solution isn’t just about the linear customer journey from debt purchase and collections to litigation and reconnection, using different forms of communication and different datasets for different stages in the process. Customer journeys are not always linear and every customer is different. Just because something is escalated, doesn’t mean there shouldn’t still be an omni-channel approach which may include a combination of field visits, telephone support, letters, email and online chat, in any order. In fact, face-to-face interaction is often the best ‘door opener’ (pardon the pun) for follow up engagement and resolution via other means, as well as being a great way to gather in-depth insight, including vulnerabilities, that can then be fed into existing digital data sources. CUSTOMER-CENTRICITY IS STILL KING Most importantly of all is how we take a data-driven approach to deliver the right outcomes and at the forefront of that is treating customers as humans. In fact, good quality data gathering is about building up as clearer a picture as possible about …

News from Scotland
Some new changes and some tidying up of the old

Published 18 July 2023

The Bankruptcy and Diligence (Scotland) Bill introduces a number of measures which modify current diligence (judgment enforcement) measures, to either improve them or clarify some of their provisions. However, perhaps of greatest impact to the credit industry will be the introduction of a mental health moratorium on debt recovery action should an individual have a mental illness. The precise details will be introduced by regulations, although the Bill provides a non-exhaustive non-mandatory list detailing what those regulations may provide including The individual’s eligibility criteria for the moratorium to apply The type of debts to which the moratorium will apply and the process for establishing the eligibility criteria The moratorium’s timeframe, what creditors can do during its currency, including the ramifications for creditors should creditors breach the moratorium The debtor’s obligations during the moratorium How information can be recorded to establish whether a moratorium is in place. Once the Bill is enacted, Scotland will be closely aligned the English Mental Health Statutory Breathing Space. Such UK-wide consistency should be welcomed. Other provisions of the Bill include the following: Clarifying the process for applying for a bankruptcy to be recalled should a debtor pay or about to pay their debts in full Where a debtor makes an application to the Accountant in Bankruptcy (as opposed to a court petition) either through the Minimal Asset Process or through the full administration process then bankruptcy should be awarded without delay. A corrective provision which confirms that where a debtor makes a gratuitous alienation of an asset a purchaser in good faith and for value will retain a good title to it. If a creditor carries out an arrestment currently a third party, such as a bank, in whose hands the arrestment is carried out, is not obliged to advise the creditor if the arrestment has been unsuccessful and not attached any funds. Arrestees will now be required to inform the creditor within three weeks if nothing has been attached. Following an earning’s arrestment the debtor’s employer is obliged to advise the arresting creditor should the debtor leave their employment. It will now be a requirement that a specific form should be used to provide this notification. Should the employer then fail to provide the information on a creditor’s application to the court a sheriff may order the employer to pay the creditor twice the amount which the creditor would have received had the arrestment be operational. The Bill states the amount should not exceed £500. If a creditor makes an application for diligence on the dependence (which may include an arrestment or inhibition) there may be a hearing prior to the provisional measure being granted. If there is a hearing and the debtor is an individual then the debtor must be provided with a “debt advice and information package” in advance of the hearing. Failure to do so will mean that the creditor’s application will not be granted. Where an exceptional attachment order has been granted (removing non-essential assets from an individual debtor’s home) …