Alliance Factoring Enters Into Voluntary Undertakings
Friday, August 19, 2005
Debt recovery business Alliance Factoring (Alliance) has entered into voluntary undertakings with the Australian Competition and Consumer Commission to expand on consumer protection measures in its operations and to improve awareness and compliance practices in relation to the Trade Practices Act.
Alliance, which is part of Baycorp Advantage Collection Services (BCS), acquires delinquent debt and recovers outstanding amounts as principal. Alliance makes up approximately 22 per cent of BCS revenues and five per cent of Baycorp Advantage Group revenues.
The undertaking follows an inquiry into some debt collection practices by Alliance in relation to debts acquired by Alliance in 2002 and 2003, following complaints from some debtors. The concerns included the age of certain debts, the level of information about debts which made it difficult to determine whether the debt was actually owed and the frequency of contact with the alleged debtor about the debt.
Alliance has undertaken to appoint a senior compliance officer, institute new management training programs, review complaint handling procedures, alter some collection processes and methods, and provide clearer avenues for disputes to be raised and resolved.
BCS General Manager Stephen Benton said the undertaking recognised that
Baycorp Advantage had made a number of changes and improvements to Alliance’s collections, complaint handling and compliance processes since the debt ledgers in question were purchased.
“We are keen to help lead reforms in the industry to improve compliance and consumer services, and we have also undertaken to facilitate a best-practice forum to get better clarity and common approaches throughout the entire collections industry,” he said.
“Alliance is committed to leading the market with best-practice standards which balance the legitimate interests of business and society for people to honour their debt obligations with respect to consumers’ rights.
“We’re committed to improving compliance protocols and business practices to ensure our collection agents have a strong understanding of the Act and of their obligations in relation to it.
“We are implementing improved training, induction and monitoring arrangements, building and expanding upon improvements implemented in the past 12 to18 months that will significantly reduce the risk of such situations occurring in the future.”
Contact:
Matthew Horan
0403 934 948