Lowell’s Post

Here are some of the highlights from a recent CreditSafe report: - Long-term debt for U.S. businesses is growing, but paying it off is tougher. Over half (58%) of businesses saw increased long-term debt in the past year, alongside a rise in operating expenses for 74% of them. Despite this, only 5% prioritize debt reduction for growth. - Late customer payments are a growing issue.  Just 14% of businesses receive most invoices on time, with 39% experiencing payments delayed by 1-30 days, and 46% by 31-60 days. Additionally, 15% face delays of 61-90 days. - More finance teams focus on Days Sales Outstanding (DSO). 57% of businesses reported higher DSO in the last year, indicating a trend of late invoice payments. This increase may be influenced by factors like 64% of businesses extending trade credit to up to 30% of customers and a 75% rise in annual revenue for many surveyed businesses. https://lnkd.in/dj5aPtnT #DSO #InvoicetoCash #O2C #receivables #b2b

Balancing Model Precision and Intuitive Simplicity: When it comes to the CECL process, credit unions can enhance compliance and user-friendliness by striking a balance between model precision and intuitive simplicity. Learn how to streamline the CECL process for your Credit Union here. #CECL #CreditUnion #Compliance

The FCA is consulting on proposals to issue a new regulatory reporting return which will capture firms with a credit broking Permission (CP24/19) and impact firms carrying out debt adjusting, debt counselling and providing credit information services. Alastair H. explores what this really means in this UKGI Compliance Insight article https://lnkd.in/ebUnUVtW #fca #consumercredit #ukgiinsight

In April 2020, a time-limited exemption was added to the National Consumer Credit Protection Regulations 2010 (the Credit Regulations). The exemption provides that small business loans are exempt from responsible lending obligations so long as there is a genuine business purpose that is not minor or incidental. The exemption has been extended 3 times and is due to expire on 3 October 2024. The Draft Regulations amend the Credit Regulations to extend the exemption for a further 2 years, until 3 October 2026. This means it's possible for people to take out these loans without the rigorous responsible lending obligations expected of other forms of credit under the NCCP. The draft regulations were only open for one week for comments, from 12 August 2024 -19 August 2024. It kind of feels like it has been rushed through without adequate consultation time. Thankfully, Financial Counselling Australia has been able to give their feedback to oppose this extension, based on the stories they've heard from #FinancialCounsellors around Australia showing these loans can lead people to financial harm. Go FCA! #CreditRegulation #ResponsibleLendingLaws #FinancialHarm

Motor Finance: Creditworthiness As regulatory scrutiny intensifies in the motor finance sector, creditworthiness practices are starting to come under the spotlight. Zoe's latest blog highlights the critical shortcomings we are seeing from our work in this sector and poses thought-provoking questions for firms to evaluate their own practices and avoid common pitfalls. https://lnkd.in/eZWgR2Qh

The first report associated with the 2023 Auto Finance Data Pilot is out and focuses on negative equity. The CFPB has chosen to focus on one topic rather than issuing a report generally about its findings. Interesting … this reminds me of its approach with the FCRA rulemaking. It proposed a rule on medical debt, rather than a comprehensive FCRA rule. I wonder if this is their new MO??

Unveiling the Secondary Credit Market Act - effective as of 29 December 2023, this European Directive on Credit Servicers and Credit Purchasers will transform the credit servicing and purchasing industry. It will streamline non-performing loan trading and facilitate the integration of the German market into the European trading sphere.   Notable changes have been made to key financial laws such as the Banking Act, the Act Establishing the Federal Financial Supervisory Authority, and the Act on the Recovery and Resolution of Credit Institutions. To understand the implications of this act on your business and the market, check out our latest publication: https://lnkd.in/e8zmgxUE

The recently in-force German Secondary Credit Market Act implements the European Directive on Credit Servicers and Credit Purchasers and creates a new regulatory environment for parties involved in trading German NPLs, regardless of where they are based. Please see below the short summary of the main features (including potential liability traps) of the new law by my colleagues Daniel Lühmann and Dr. Christopher Kranz. Please do get in touch if we can assist.

In the FCA's latest consultation paper, CP24/19, it proposes a new regulatory return format for firms offering credit broking, debt adjusting, debt counselling, and providing credit information services. The update includes both mandatory and discretionary sections, with tailored questions based on a firm’s permissions. Read our full blog for more information about what to expect from the new return format and how you can prepare: https://hubs.la/Q02S7K4P0 📅 The deadline for feedback is 31 October 2024. Don't miss the opportunity to share your thoughts! Need help preparing? Thistle Initiatives can guide you through the process: 📞 0207 436 0630 📧 info@thistleinitiatives.co.uk #FCA #ConsumerCredit #Compliance #FinancialServices #RegulatoryReturns

The federal government has embarked on its first independent review of the credit reporting framework since 2008. The review will assess the overall effectiveness of the country’s credit reporting framework. It will look at whether current laws and regulations allow for effective lending while ensuring consumers’ personal information is protected. The review will assess the roles of the Australian Prudential Regulation Authority, the Credit Act and the Privacy Act. It will also look into initiatives like the Misconduct Compensation Scheme and the Sustainable Finance Taxonomy for Banks. The news was welcomed by the Australian Retail Credit Association (ARCA) who said the move is long overdue. “Credit reporting gives lenders quick access to an objective source of truth about possible borrowers, reducing costs and removing barriers to credit,” said ARCA chief executive Elsa Markula. ARCA emphasised the importance of this review for consumers, who benefit from accurate and effective credit reporting. -------------- Want credit repair advice? Contact Clear Credit Solutions on 1300 789 783 or enquiry@clearcreditsolutions.com.au. We’ve won the ‘Credit Score / Credit Repair Services’ category in the annual ProductReview Awards for five consecutive years. #creditrepair #creditscore #creditreport