CSA raises customer data concerns with OFGEM

The UK trade association for the debt collection and purchase industry has also asked for reassurance that the “integrity and completeness of customer data” will be an area of particular focus for affected customers. The CSA says this could have a crucial bearing on the customer journey and how customers are treated later on.

Chris Leslie, chief executive of the CSA wrote a letter to Jonathan Brearley, the chief executive of OFGEM. In the letter, Leslie writes that while it is clear what will happen to those customers with neutral and/or credit balances, the picture appears less clear in relation to those that are in arrears.

The CSA says that those customers may find themselves and their debt transferred to a new supplier, or their debt may remain with the administration and liquidation of the failed supplier. According to the trade body, it is possible that those customers may face unintended risks.

“Our members comprise specialist tracing agencies and collect on behalf of large banks and utility companies. As such we take a close interest in significant policy matters likely to impact customers and the collection of sums owed to creditors – and so the recent change in the energy supplier landscape has a number of consequences we want to raise with OFGEM directly.

“We believe it would be beneficial at this early stage to have greater clarity on the nature of the regulatory framework in which administrators will determine their approach to accounts in arrears.”

According to the letter, the management and transfer of customer data is a key concern of the CSA. Leslie said: “The accuracy and completeness of data will be a key consideration, especially for those whose debts remain with those administering the failed supplier.

“In those cases, not only will it be crucial that the administrator adheres to the same standards as you would expect from a supplier, but also the new supplier will need to be aware of the existence of the debt, even if it is not responsible for its recovery.

“It will be appreciated that our members will not be able to pre-empt the potential effects of inaccurate data any more than they would be able to advise on wider considerations such as entitlement to benefits or what might happen in relation to those customers on pre-payment meters.”

Leslie says that clarity and accuracy of data will be critical in achieving effective and appropriate treatment for such customers and in ensuring they are informed and engaged with.

“A minor error in data accuracy initially can have profound implications which can contribute to a poor customer journey at a later date.”

In the letter, Leslie stressed that early engagement is key. “We are calling upon OFGEM to embark on a proactive communications strategy for those transferred customers who are in difficulty to engage as soon as possible.”

Debt collection in utilities as well as the current state of the energy market are high on the agenda for the Collections and Vulnerability Summit. Click here to view the agenda.