A YEAR IN THE LIFE OF THE ICM 2007 CREDIT PROFESSIONAL OF THE YEAR

On Wednesday 23rd January, the ICM Chilterns Branch held its first meeting of 2008, and invited Carlo Pegna, the ICM Credit Professional of the Year 2007 to talk about his year since winning the inaugural award in March 2007.

Carlo won the award after being nominated by a company in London due to the innovative and successful manner he had collected a debt for them.

As a result his company has impressively donated over £3,000 to
CLIC Sargent, the charity which helps care for children with cancer

In 2005, Carlo set up Master Collections, a debt collection agency founded on the vision of combining the qualities of a good debt collection lawyer with those of a good credit controller while having in place a quality query management process. Carlo talked about how he wanted to do away with the bullying and intimidating image that have hounded debt collection agencies for years. For that reason he decided to contribute part of Master Collections fee to charity if debtors settle promptly. As a result his company has impressively donated over £3,000 to CLIC Sargent, the charity which helps care for children with cancer.

Carlo expressed his concern of how such domination can dilute the
profile of the creditors’ debt

The talk was very frank and open with Carlo describing just how hard it is for new starter debt collection agencies to break into a market that is dominated by large debt collection agencies and law firms. As a result Carlo expressed his concern of how such domination can dilute the profile of the creditors’ debt when a debtor receives letters for different creditors from the same DCA.

The presentation highlighted how difficult it is for new start up DCA’s to acquire volume referrals, which is the life and blood of any DCA. This is partly the result of barriers set by procurement rules that start-ups cannot stand up to. It is Carlo’s opinion that professional associations that cover DCA’s should do more to help them start up and acquire business. With that said Carlo produced an interesting statistic in that law firms specialising in debt collection outnumber CSA registered debt collection agencies 10 to 1.

Not only did Carlo have barriers in terms of the acquisition of volume referrals to overcome but also a trademark opposition from MasterCard™. Luckily, utilising the same skills he uses when resolving debtor disputes, he managed to negotiate a settlement.

In order to keep Master Collections trading, and after a particularly negative experience of a debt referred to a legal supplier on his panel, Carlo had to find an alternative strategy to attract and maintain business.

SCAS is unique in England in that it offers clients advice and assistance

Drawing from his previous experience of working in credit control departments and legal practice, and realising there was a gap in the market, Carlo introduced a membership scheme incorporating SCAS (Small Claims Advisory Service). SCAS is unique in England in that it offers clients advice and assistance when dealing with claims up to £5,000. Carlo explained as a result he was able to identify his brand from that of his competitors because membership offers more than just a No Collection No Fee service. Using the example of one case because of what the membership scheme offers Carlo described how Master Collections are able to enforce claims a lot quicker than their competitors.

Carlo was quick to anticipate that some may accuse him of being selfish by spinning the award for the benefit of his company. But at the same time he knew as the Credit Professional of the Year he owed a duty to his peers and the public. For that reason he explained a decision to circulate an interactive e-mail newsletter to credit managers and finance directors keeping them up to date with changes in the credit industry in addition to supplying tips and advice. As for the public Carlo developed the Debtometer, which shows how the latest financial figures, debt growth and economic outlook impact on the economy as a whole.

Carlo will be taking his talk on the road. If you would like to book Carlo Pegna or attend future presentations, please contact us.