The Credit Services Association (CSA) has launched a ‘model contract’ designed to help debt collection agencies cope with the increased regulatory burden resulting from the Financial Conduct Authority (FCA).
The contract has been designed for members operation on a contingency basis. It 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.
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Nick Cherry, CSA portfolio director, said: "It [the new model contract] is 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."
Although not mandatory, the CSA said it expected the model to act as an essential benchmark to which its member could refer to.
Sara de Tute, CSA portfolio director for compliance said: "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."
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By GlobalData
