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Est. 1961

Essential reading for those involved with

Collections, Investigations, Process Serving and Repossessions in Australia

AGENTOctober/November 2015 | Volume 48 Issue 5

www.imal.com.au

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www.imal.com.au | Oct/Nov 2015 | AGENT | 3

CONTENTS

AGENTOctober/November 2015 | Volume 48 Issue 5

16

14

9

No part of this journal may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system without the prior written permission of the publisher. The views contained in articles by contributing authors are not necessarily those of the publisher, editor or directors of the Institute of Mercantile Agents Limited. Articles and content may have been edited, but remain the copyright of the author. It should be noted that articles are of a general nature and are not a substitute for appropriate professional advice. Although all reasonable attempts have been made as to accuracy of submitted advertisements and their bona fides, no warranty is given to any party. The right is reserved to accept or reject any articles or advertisements.

MEDIA & NEWS 4

FORUM Worth the trip 12 Improved training delivers 16

MEMBER INFO Online directory 8

PROFESSIONAL DEVELOPMENT Swiped out 9 Repair not replace 14

INSTITUTE From the President: Basil Faulkner 20 From the CEO: Alan Harries 21

The AGENT also appears online at www.imal.com.au. While essentially the same content, the online version will include any updated information at the date of posting.

AGENTOctober/November 2015 Volume 48 Issue 5AGENT is the official bi-monthly journal of the Institute of Mercantile Agents Ltd.17B Denney St Broadmeadow, NSW [email protected]: 94 000 514 483ISSN: 1443-3443Editorial DirectorAlan Harries Phone (02) 4927 0477 Fax (02) 4927 [email protected]

Editor Contributions, articles, letters and comments from readers should be directed to:Institute of Mercantile Agents17B Denney StreetBroadmeadow, NSW 2292Phone (02) 4927 0477 Fax (02) 4927 [email protected] material deadline is the 1st of the month preceding publication.Design and ProductionAbigail ThompsonPhone (02) 4927 [email protected]

PrinterGreg Tapp PrintingMayfieldPhone (02) 4960 0700 Fax (02) 4960 0701General, Membership andService Directory EnquiriesInstitute of Mercantile Agents Ltd.Office hours: 8.30am-5.00pm [email protected] (02) 4927 0477 Fax (02) 4927 0677PO Box 233, Waratah NSW 2298Advertising EnquiriesPhone (02) 4927 0477 Fax (02) 4927 [email protected]

MEDIA & NEWS

| AGENT | Oct/Nov 2015 | www.imal.com.au4

The world’s largest debt buyer Encore Capital Group has snapped up a 50.25% stake in one of Australia’s biggest

debt resolution businesses, Baycorp, giving it entry into the debt market in Australia and New Zealand.

Encore employs more than 5,600 people and collected more than US$1.6 billion in 2014 alone - the Baycorp acquisition expands Encore’s global reach to 13 countries. Baycorp is regarded as having the largest customer default database in the collection industry in Australia and New Zealand and has nearly 60 years’ experience in resolving debt across the two countries.

Craig Hobart, General Manager Australia for Baycorp told the Australian Finance Review “Baycorp had approached Encore three years ago to tap its debt purchasing expertise, well before the culmination of the current deal” adding “a key element of the transaction was Baycorp’s ability to access Encore’s predictive analytics and decision science expertise, which will be used to grow the Australian business”.

Baycorp is currently owned by Oceania Capital Partners and SAS Trustee Capital, both of which will remain as shareholders of the company. OCP, which is listed on the Australian Securities Exchange in an announcement to the ASX advised it has sold a 27.9 per cent stake in the company to Encore for A$18.3 million.

“Through Baycorp, we now have access to two new markets that are showing strong growth and have promising opportunities for both consolidation and diversification” said Encore chief executive, Kenneth Vecchione.

“There are strong synergies between our companies; we share the same values with regard to resolving debt respectfully and managing our clients reputations with care”, said Grant Jorey, Group Chief Executive of Baycorp (Australia/New Zealand).

[Sources: Australian Financial Review, www.stuff.co.nz and www.nasdaq.com - 28 September 2015]

ENCORE enters market A Queensland truck driver hid his motorcycle at a mate’s place

and reported it as stolen so that the vehicle would not get repossessed. These elaborate efforts eventually landed Mathew Darrin Cork in Ipswich Magistrates Court, where he pleaded guilty to trying to dishonestly gain a benefit for himself.

The background is the 41 year old truck driver and father of four had taken out a loan from a financier to purchase a Yamaha XT250, worth $7,000. However on failing to keep up with his payments, Cork took his bike to a friend’s address in Pine Mountain on 14 February 2015 as he was concerned the motorcycle would be repossessed. He told his mate he was worried someone would steal his bike and asked if he could store it in a shed on his friend’s property - he told his mate not to let anyone ride the bike.

Later on 7 March 2015, Cork attended at Ipswich Police Station to falsely report his motorcycle as stolen, telling officers he had left for work on 14 February and upon returning three weeks later he discovered his bike was missing.

Subsequent investigations by the Police located the bike in Cork’s mate’s shed on 27 May 2015.

When then interviewed by Police, Cork stuck to his story the bike had been stolen and denied knowing where it had been kept - he claimed instead that his son, or one of his son’s friends, must have taken it to the Pine Mountain address.

Upon Cork’s version of events being found to be false, he was arrested and the bike impounded by police. The lawyer for Cork told the court his client had made arrangements to pay back the money he still owed to the financier. The solicitor further told the court, Cork hadn’t broken the law since 2010 and was remorseful for his behaviour in relation to the offence. Cork was convicted and ordered to complete 180 hours of community service within 12 months. The bike was ordered to be returned to the financier.

[Source: www.qt.com.au - 28 August 2015]

REPO avoidance


It is with great sadness we note the passing of long time contributor to the AGENT and IMA National Conferences, Mr Gerard Nelson of Australian Workplace Strategies on 18 July 2015 after a brief illness.

Gerard was passionate about his work as an industrial advocate and willingly and effectively shared his knowledge with his famous dry wit very much on show. He was a man respected by those who knew him and a friend to many. Always a gentleman, Gerard asked little but gave much - he will be missed by all who were acquainted with him.

VALE: Gerard Nelson

MEDIA & NEWS

AAC PROCESS SERVERSAND INVESTIGATIONS

Process Serving Repossessions Field Calls Skip TracingLockoutsCourt Filing InvestigationsOccupancy Reports

Our reputation is built on over 27 yearsof excellent service and reliability

Providing mercantile services for the whole of Western Australia has its challenges due to the size of the state and the remoteness of its country communities. AAC however has the ability to service the entire state in providing field services for its customers.

Level 3, 231 Adelaide Terrace, Perth WA 6000 Phone: (08) 9325 3855 Fax: (08) 9325 3835

Mail: PO Box 6157, East Perth WA 6892Web: www.aacprocess.com.au

Email: [email protected]

Mr John Klarich, Sheriff of WA has announced that his office’s Contract for the Delivery of Civil Enforcement,

Fines and Infringement Enforcement and Delivery of Driver Demerit Point and Suitability Notices in the Southern Region of Western Australia was awarded to Baycorp (WA) Pty Limited on 29 July 2015. The announcement details that the new contract arrangements will launch on 22 November 2015 with the transition from the existing contract also held by Baycorp to the new contract expected to be seamless with no interruption to service.

[Source: Announcement of Contract 201400572 – Sheriff’s Office, WA Department of Attorney General - 21 September 2015]

Operating in Australia we might assume all countries have a compliance driven collection industry but a recent

story from Singapore illustrates some countries lack effective regulations with a consequence that some of their collection operators engage in what we would regard as abhorrent industry practices.

A debt collector who was also a loan shark runner has been recently sentenced to four years and three months gaol and ordered to be given 15 strokes of the cane for offences under industry legislation in Singapore.

Weng Jiajun at the time of his offences was working for collection firm Double Ace Associates and was also fined the maximum SGD$5,000 for using threatening words and behaviour to harass the wife of a Korean restaurant owner and patrons at the restaurant when he went there with two others last year to seek payment of an alleged debt from the restaurant owner and to harass the staff if his request was refused.

The 32 year old was reportedly a repeat offender and faced 19 charges, pleading guilty to eight and asking for the rest to be taken into consideration in sentencing.

The court was told Weng had owed SGD$2,000 to a loan shark called Lucas and began working for Lucas late in 2014 by harassing debtors with Lucas promising to deduct SGD$150 from Weng’s debt for each debtor harassed. Lucas also threatened to burn “hell notes” at Weng’s parents’ house if he refused to help.

For about a month prior to his arrest earlier this year, Weng went around estates locking the grill gates of debtors’ units with bicycle locks, splashing paint, writing graffiti on walls and leaving notes behind.

Whilst working for Double Ace, Weng and another colleague trespassed into a flat to threaten a debtor’s 66 year old mother after attending to collect an alleged debt of about SGD$28,000. The court was told one of Double Ace’s debt recovery tactics involved literally forcing debtors to pay.

The Public Prosecutor Caleb Tan argued Weng and his colleagues from Double Ace “operated in groups and caused public disquiet through their tactics which included shouting at debtors, putting up banners, chasing persons nearby away and resorting to physical violence at times”.

The maximum punishment for an enhanced moneylending harassment charge in Singapore is nine years’ jail, a $60,000 fine and 10 strokes of the cane.

[Source: www.straitstimes.com - 18 September 2015]

CANING ordered WA sheriff contract renewed


MEDIA & NEWS

The Australian Competition and Consumer Commission has announced it will not oppose Macquarie Group Limited’s

(Macquarie) bid for the Esanda Dealer Finance business (Esanda) from the Australian and New Zealand Banking Group (ANZ). Both Macquarie and Esanda provide motor vehicle finance to motor vehicle dealerships and consumers throughout Australia.

The ACCC concluded the possible acquisition was not likely to substantially lessen competition in the market for the supply of bailment finance and point-of-sale (POS) finance facilities to motor vehicle dealerships.

“The ACCC had some concerns that the proposed acquisition may lead to increased bailment interest rates (or lower commissions to dealers on POS finance), particularly for dealerships that do not have access to an aligned or in-house finance provider,” ACCC Chairman Rod Sims said.

“However, the ACCC concluded that on balance the combination of existing and potential competitive constraints would be sufficient to prevent a substantial lessening of competition as a result of the possible acquisition. The merged entity will face competition from Westpac/St George and manufacturer-aligned financiers as well as the possibility of new entry, and pressure from vehicle manufacturers (OEMs) to ensure that their dealers’ finance offers remain competitive with those of other dealers.”

Several vehicle manufacturers in Australia have an aligned finance arm, including Toyota Finance, Nissan Finance, BMW Finance, VW Finance and Mercedes Finance. Although aligned financiers generally only offer wholesale finance to dealerships which sell vehicles of their manufacturer, the ACCC understands that most dealerships in Australia sell multiple brands of vehicles.

Accordingly the proportion of dealerships without access to an aligned financier is small. Further, one of the aligned financiers, Alphera, competes for non-BMW dealerships despite being owned by BMW.

“The ACCC also noted that if the merged entity were to increase bailment rates and/or decrease POS commissions, this would provide an incentive for other providers, including manufacturer aligned financiers such as Toyota Finance and Nissan Finance, to begin to compete for the business of unaffiliated dealerships,” Mr Sims said.

The ACCC also considered that the competitive nature of car retailing may impose a further indirect competitive constraint on Macquarie. OEMs without their own finance arms (such as GM Holden, Ford and Mazda) need to ensure that their dealers remain competitive with other OEMs’ dealers. If they perceived that increased finance costs were affecting sales of their vehicles they would have an incentive to respond. OEMs already seek to ensure competitive finance options are available to their dealers by running tenders and appointing financiers to be the ‘white label’ finance provider to their dealerships. OEMs may also be able to use these tender processes to introduce another financier into the market.

Bailment finance is acquired by dealerships to finance the vehicles held in their showrooms before they are sold to customers. Dealerships also acquire POS finance facilities to enable them to offer finance to customers purchasing vehicles, and earn commissions on the customer finance contracts they arrange.

Further information is available at http://registers.accc.gov.au/content/index.phtml/itemId/1189650/fromItemId/751046

[Source: ACCC Media Release 181/15 -17 September 2015]

MACQUARIE’S bid for Esanda

Former Queensland police detective Mick Featherstone has failed to win back his PI’s licence after it was suspended over serious criminal charges relating to the kidnap of a bank executive.

Featherstone had challenged the suspension in the Queensland Civil and Administrative Tribunal (QCAT) claiming his Gold Coast business was suffering and his licence ought to be returned at least until the criminal charges were resolved.

The tribunal upheld the suspension, ruling it was required to maintain public confidence in the private investigation industry as a whole and not just protect the public from an individual licensee.

In December 2014, Featherstone was charged with attempted fraud, attempting to pervert the course of justice and retaliation against a witness - these charges relate to an incident on Indonesia’s Batam Island in January 2013, where an executive of the National Australia Bank was allegedly held against his will and coerced into retracting evidence he had given in a Supreme Court case in Brisbane.

Also charged with the same offences were Clive Palmer’s media adviser Andrew Crook and former Sydney Swans AFL player-turned property developer Tony Smith.

QCAT in its ruling noted the charges were “serious, relating to personal safety and the administration of justice” and “the alleged illicit obtaining of information”. It ruled: “The nature of the offences is therefore integrally linked to the statutorily defined functions of a private investigator that expressly include obtaining and giving private information about persons without their consent”

The Queensland Office of Fair Trading which suspended Featherstone’s licence in February 2015 after he failed to provide satisfactory reasons why it should not do so, said in a statement: “The Security Provider Act 1993 is designed to protect the public by ensuring those in the industry are of good character and appropriately qualified” and noted “the licence suspension will remain in force until the outcome of the charges against Mr Featherstone are finalised. Mr Featherstone is not able to perform any of the functions of a private investigator while his individual private investigator licence is suspended.”

[Source: www.abc.net.au – 11 September 2015]

RESTORATION of licence denied

7

MEDIA & NEWS

An IMA member operating in Victoria remarked to the AGENT in recent weeks that he had discovered a negative stemming from the introduction of negative licensing of agents in that state. Whilst initially of the view a strong positive flowing from the

introduction of such a licensing regime was the saving of money on licensing fees, now with the benefit of hindsight, he is not so convinced that such a regime was actually in the best financial interests of Victorian members of the industry.

The reason for his change of thinking? He had recently learnt from a client the reason his firm has seen a dramatic downturn in referral of assignments for house repossessions/evictions was the client itself had encountered at least one major bank following the negative licensing reforms had ceased the use of commercial agents to supervise and report on these types of repossessions. The bank concerned is reportedly now using real estate agents who reportedly do not charge for the service of attending and reporting on the lockouts/evictions in pursuit of ultimately achieving a listing from the bank to sell the repossessed properties.

The AGENT wonders whether the professional indemnity policies held by real estate agents will actually indemnify the policy holder in the event of any issue stemming from a specific lockout/eviction whilst the real estate agent or employee is engaged in activities which are in reality the occupational work of commercial agents.

A further and reasonable question too is how will real estate agents be equipped to deal with the difficulties of an angry and resistant mortgagee as is sometimes encountered when it comes time for the lockout/eviction. Given the associated issues involving the risk of adverse media attention, reputational risk to the bank’s brand and the potential legal minefield unleashed if things go pear shape, the cutting out of a commercial agent’s assistance may be a strategy the bank concerned comes to regret.

Following on from the work and findings of the 2014 NSW Parliament’s Upper House Inquiry into Debt Collection, the

NSW Attorney General has recently tasked the Department of Justice to convene a Debt Recovery Working Group (DRWG) to consider the recommendations of the Inquiry - in brief it shall:

a. Consider how best to implement proposals related to increased protections for debtors through changes to the operation of garnishee orders and writs for the levy of property;

b. Consider the technical details of how garnishee orders should apply to term deposit accounts;

c. Explore options for increased flexibility in relation to the service of court documents; and

d. Consider proposed options that will better enable creditors

to ascertain the location of a judgment debtorAs interested stakeholders, both the Institute of Mercantile

Agents and the Australian Collectors & Debt Buyers Association were invited to nominate a senior representative to join the DRWG. Other stakeholders to be represented were to be drawn “from across government, the legal sector and the finance industry” - the DRWG initially is to meet on a monthly basis.

The IMA’s representative on the DRWG will be Daniel Taylor our National Vice President - Administration & Collections Sector Chair. Daniel is the principal of Credit Collection Services Group Pty Ltd based at Hurstville.

The ACDBA will be represented on the DRWG by ACDBA Director Michael Brahim - Michael is Managing Director of Complete Credit Solutions Pty Limited based at Parramatta.

CONSEQUENCE of negative licensing

WORKING party convened


Online humour on-forwarded by email from friends and colleagues is a common event in most workplaces, but sometimes actual happenings at

the coal face can bring a wry smile and laughter too!IMA member Wade Bekesi of Mercantile CPA in Adelaide recently shared

with the AGENT an actual email request from one of the debtors his team had been following up for a client on a contingency basis in respect to overpayment of wages. The collector found the email humourous but even more so upon reflection and realisation the email was a genuine request:

“Good afternoon,Apologies for the late payment. I was in a remote area doing research on the effects of monkey AIDS on the local donkey population and out of range without any phone or internet access.I have included a copy of the receipt. I would also like to offer the opportunity for Mercantile CPA to perhaps donate the remainder of the outstanding amount I owe for research of donkeys affected by monkey AIDS.I have been asking for assistance from many companies, but for some reason, I have been unable to gain any funds. Hope you can assist.”

BIT of an ass!

Hobart, Tasmania11-13 May 2016

2016 IMA National Conference


Just a reminder to members that the annual invoices for listings in the Online Directory will be compiled and distributed in late October.

NOW is the time to make any amendments to your directory requirements - visit www.imal.com.au to complete the “Online Wizard” (located in the “Members Only” area) to communicate your new requirements - you will know the process has been successfully completed if you receive a confirmation email from the wizard. The responsibility for getting listings right lies with you, the member.

Members should note any changes to listings do not appear live immediately as all changes must be first verified by the team at the National Office before appearing live in order to correct any inappropriate, misleading or incorrect text.

ONLINE directory

MEMBER INFO

1 Picking up a phone, responding to a text, clicking on a link or carelessly providing personal information to someone we don’t know

2 Failing to properly secure computers or mobile devices (smartphones, tablets or laptops)

3 Creating easy-to-crack passwords

PROFESSIONAL DEVELOPMENT

Ever thought about your own personal exposure to fraud and how such risks arise?

SWIPED out

We have probably all heard advice from time to time, along the lines of: “if you have a problem and need to get a solution, have a good look in the mirror because the person standing there can sort it all out”.A recent article about online fraud issued this very same sage advice, pointing out that Personally Identifying Information (PII) isn’t just magically swiped. Instead, the reality is each of us are actively and at times thoughtlessly ‘swiping’ our information all the time and it’s time to stop, if we are serious about protecting ourselves from online identity fraud!The reality is the world runs on information and even with the best will, we can’t fully extricate ourselves from that reality, however Adam Levin in his book “SWIPED: How to Protect Yourself in a World Full of Scammers, Phishers, and Identity Thieves” argues we each need to take responsibility for the attackable vulnerability of our personal information and change some of our individual practices which expose us to risk. Levin points out information is routinely exposed to criminals every time we do any one of the things in the following list:

9www.imal.com.au | Oct/Nov 2015 | AGENT |

4 Discarding rather than shredding documents that contains PII

5 Responding to an email that directs us to call a number we can’t independently confirm, or completing an attached document which asks for PII in a non-secure environment

6 Saving our user ID or password for a website or app as a shortcut for future login

7 Using the same user ID and password on different sites, whether for email, social or financial sites

8 Taking online quizzes that subtly ask for information we may have provided as the answers to security questions on secure sites

9 Snapping pictures with our smartphone or digital camera without disabling the geotagging function

10 Failing to replace a manufacturer’s default password with a long and strong one of our own on any connected appliance or electronic device in our homes

11 Using our email address as a user name/ID, if we have the option to change it

12 Using simple PINs like 1234 or 9876 or a birthday

13 Forgetting to obtain, review and correct our credit reports

14 Going 24 hours without reviewing our bank and credit card accounts to make absolutely sure that every transaction we see is familiar

15 Using a free Wi-Fi network, without confirming it is correctly identified and secure, to check email or access financial services websites that contain our sensitive data

Levin contends that in each of the above instances, we leave ourselves vulnerable to those who consider the theft of our identity as their day job. To protect ourselves we need to look to the person in the mirror to take action! ■

Adam Levin is chairman and co-founder of Credit.com. His experience as former director of the New Jersey Division of Consumer Affairs gives him unique insight into consumer privacy, legislation and financial advocacy. He is a recognised expert in the US on identity theft and credit. His new book, “SWIPED: How to Protect Yourself in a World Full of Scammers, Phishers, and Identity Thieves” will be released later this year.


10| AGENT | Oct/Nov 2015 | www.imal.com.au

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For more information call 1300 473 463 or email [email protected]

www.debitsuccess.com.au


FORUM

In July, I had the opportunity to travel to Boston to attend the 2015 ACA

International Annual Convention and Expo - my first ACA International Convention.

The event was attended by approximately 1,200 attendees and involved a trade show of 92 exhibitors and commenced with a lunch specifically for those attending their first Convention - this was an amazing experience allowing me to meet and mingle with other attendees mostly from varying States of America.

One of my first sessions was joining the International Unit networking event, where I had the opportunity to meet other International business owners from the United Kingdom, Germany, South Africa, Russia and Jamaica. We had a quick session where we discussed a little bit about ourselves and the collections landscape in our respective countries.

A question of scaleThe opening question typically asked

of me by most delegates I chatted with was “how many collectors do you have

in your shop?” As discussions ensued, I was blown away by the numbers that each of the collection agencies had. A small collection agency typically was at least 50 staff members, a medium 500-1,000 and the large agencies were those with in excess of 2,500 staff. At this point I knew I was no longer in Kansas!

Sessions of interestSimilar to the structure of the IMA

National Conferences, the ACA Convention had varying presentations and sessions but the sheer number of attendees allowed and necessitated that some sessions be offered as specialist interest streams for delegates to choose from. However the main theme of importance and interest at the 2015 ACA Convention focused upon the 10 July 2015 US Federal Communication Commission’s (FCC) Declaratory Ruling and Order clarifying the Telephone Consumer Protection Act (TCPA).

Compliance and technological changes also featured prominently throughout the

Convention. One of the best sessions I attended was presented by LaDonna Bohling “Changing Conversations: Rethinking Consumer Communication based on Consumer Protection Laws”. The energy and enthusiasm of LaDonna was truly inspiring and I found it amazing to see someone provide such a thought provocative presentation on how we should change the way collectors engage with debtors (or as our American colleagues call them, “Customers”).

Another presentation was by the outgoing ACA President Richard Doane and President Elect Jim Richards. Their presentation was titled “Developing Your Future Leaders”. Richard the President of Sunrise Credit Services explained the leadership regime Sunrise has adopted over the years. Sunrise offers various diploma courses to its staff to grow and develop their team and have also recently progressed to development of a Masters program and now a Doctorate program.

It was fantastic to see and hear about the commitment which the collection

Daniel Taylor shares his euphoria, experiences and thoughts on attending ACA International’s Annual Convention and Expo earlier this year.

WORTH the trip

www.imal.com.au | Oct/Nov 2015 | AGENT |13

FORUM

agencies held in relation to growing and developing their staff. This was not an isolated perspective but very much evidenced by the way many of the various collection agencies were represented at the Convention. 80% of the attendees representing the various collection agencies at the event had some form of tertiary qualifications.

Perspectives & insightsThrough my various discussions with

other attendees I was also able to obtain a greater insight into the running costs of a collection agency in America. In one of the sessions I attended, the presenter confirmed starting wages of his collectors were US$8.00 per hour, whereas an experienced collector could receive up to US$18.00 per hour plus commission. Additional pay rates (US$2.00-3.00 per hour) were paid for bilingual staff.

Another interesting number was the price typically paid in the US for rent/purchase of offices. One of the delegates I chatted with, revealed that for his

company’s offices of 65,000 square feet (just over 6,000 m2) rent of US$2 Million was paid - this equates to about AUD$460 pa per square metre, which is a fraction of the cost of buying office space in any of the States and Territories in Australia.

As many will be aware, there is a pendulum shift in both Australia and America to provide greater protection for consumers - this was not more evident than when walking the halls of the Convention’s Trade Expo. Approximately 80% of the Expo halls were filled with software providers - there were software providers for every price within the market. Each of the software systems on offer had integrated compliance systems to ensure adherence was met by collectors.

The Convention also had some great presenters throughout the three days, including presentations by:

• Dr Joseph Michelli - Organisational Psychologist and expert on leadership

• Robert O’Neill - former Navy SEAL and the person who shot Osama bin Laden

• Dennis Miller - Five time Emmy Award winner and Saturday Night Live comedian

Robert O’Neill’s presentation titled “Never Quit” was one of the best and most empowering and captivating I’ve been to in a long time. Robert explained what was involved to become a Navy SEAL and how he ascended to the Special Warfare Development Team (SEAL Team 6). He explained the pressures of recruiting for both the Navy SEALs and SEAL Team 6 and the reliance on team work within combat situations. The dedication to self-commitment was truly inspiring.

All in all, I found the Convention was a great experience and I strongly encourage IMA Members to attend at least one ACA International Convention to experience firsthand the magnitude of the US market and the way the “Yanks” do things. ■

Daniel Taylor is the CEO of Credit Collection Services Group Pty Ltd at Hurstville and the IMA’s National Vice President - Administration and Collections Chair.

All in all, I found the Convention was a great experience



Unsurprisingly, when the Productivity Commission was asked to examine

Australia’s workplace relations framework, both unions and business groups complained that life under the Fair Work Act was unfair. One would think that if both unions and business can agree on something things must be bad, but is life under the Fair Work Act really so terrible?

One of the most common complaints under the current workplace regime has been unfair dismissal laws. Business groups frequently complain that lodging unmeritorious actions against employers has become too easy, and that it’s now easier to throw some cash at a disgruntled employee to make them go away rather than to fight their claims to finality.

Former Howard Government Minster Peter Reith recently commented in The Age that “the very idea that owners of Australia’s 2 million small businesses wake up each morning and rub their hands together with Dickensian villainy looking

for a reason to sack a valuable worker is laughable”. This may be, but it’s also a joke to believe that they all have the best interests of their workers at heart.

The Commission acknowledged as much in its draft report released in mid-August 2015. It said bosses do not always act appropriately and employees can often be fired without due cause or notice. This is typically a shattering experience for employees and it can have long term effects on their employment prospects and their lives. As the name implies, ‘unfair dismissal’ is exactly that.

The report correctly observed that laws to protect otherwise good employees from unscrupulous employers are essential. They reflect community expectations and are also important for economic reasons.

However, it did note these laws are open to abuse. It recommended changing the penalty regime to ensure procedural errors alone are not sufficient to award compensation. Under these

recommendations, there would have to be evidence of serious misconduct or genuine under-performance before an employee could have access to a remedy. Currently, even if there is a genuine reason to fire someone, the sacked worker can still be awarded significant compensation if certain procedural requirements weren’t followed. That would all change if the Productivity Commission gets its way.

The Commission also said that these changes, if implemented, would make it easier for small business to comply with unfair dismissal laws. Currently, the Small Business Dismissal Code applies to employers who have less than 15 employees. This code permits small businesses to escape some of the more onerous procedural requirements that larger employers are expected to follow.

If unfair dismissal laws are changed, the Commission says it would make it easier for employers to comply with the procedural elements of unfair dismissal

Loretta Houlahan explains that Fair Work and Productivity unlike many of its biggest critics, actually does work.

REPAIR not replace

Penalty Rates

Awards

Unfair Dismissal

Flexibility

Protections

www.imal.com.au | Oct/Nov 2015 | AGENT |15

laws, so there would be no more excuses for business regardless of their size. The Small Business Dismissal Code should therefore be removed, it says.

Somewhat controversially, the Commission also took aim at weekend penalty rates. Currently, many workers get paid more on Sundays than they do on Saturdays. Although the report called weekend work a ‘social disability’, it said the distinction between Saturday and Sunday work was now obsolete and weekend penalty rates should be the same for both days. Understandably, the ‘socially disabled’ amongst us were outraged.

But the biggest bone of contention in the Commission’s report was the concept of the ‘enterprise contract’, or what unions have described as Workchoices Mark II. Instead of using individual contracts for award covered employees, the enterprise contract would allow employers to vary an award for an entire class of employees without having to negotiate with them individually. The contracts would need to be registered with Fair Work but would only undergo a ‘non-disadvantage’ test if a

complaint from an employee was received. The idea is to allow flexible workplace arrangements to be adopted more easily.

The issue is that under the current regime a ‘flexible workplace arrangement’ requires mutual consent from both the employer and the employee. The proposed ‘enterprise contract’ does not.

However, these contracts would not be allowed to undercut modern awards, enterprise agreements through collective bargaining would still be permitted, and registering these new contracts with Fair Work could actually gives employees greater protections than they currently do now. Despite all the whining, they might actually be a good idea.

The Fair Work Act has a tough job trying to ensure justice is accessible and affordable for those who need it, but also ensuring businesses are not disadvantaged by too onerous employee-focused restrictions. Although the Productivity Commission found some room for improvement, by and large it said the Fair Work Act was doing a pretty good job.

I guess you could say that unlike many of its biggest critics, the current regime

actually does work. ■

Loretta Houlahan is a lawyer with Australian Workplace Strategies and Parke Lawyers Pty Ltd in Melbourne and can be reached on 1300 011 111 or by emailing [email protected].


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In 2012, ACM Group went through a very public court action. When companies go through a period of reputational damage,

they can follow different pathways: they can try to limit their losses by pointing the finger at the two employees who carried out the inexcusable actions, or they can do what we have done: acknowledge that while not representative of our hundreds of employees, it reflects badly on everyone, and people were hurt.

Most importantly, companies can cross their fingers and hope staff learn that if they don’t comply with the laws governing our industry, they

won’t have a job - or they can

embark on a more challenging, incremental process to achieve lasting cultural change. They can choose to implement a proactive program of structural change to ensure the past actions of individuals cannot be repeated.

We chose that journey, and the results speak for themselves.

The first thing we did as a leadership team was look at what was actionable in the short, medium and long-term, and plan accordingly. In June 2012, we established a separate, centralised department for financial counsellors, hardship customers and public trustees so that they interact with specialist staff, whose years of experience our customers and the company could trust.

Notice that I use the word ‘customers’. It’s incredible to see how much a seemingly simple thing can impact behaviour. We all know from our everyday lives how we like to be treated with respect. We can all relate to how we feel if someone is rude to us, doesn’t answer our questions or doesn’t try and help us. Why should anyone whose debt has been assigned to a collection company expect anything less?

Trent Vieira details the ACM experience of achieving cultural change through improved training.

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Trent Vieira


stricter

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Around the same time as we embarked on our change program, we were working towards opening our Manila operations, which doubled in size in just over a year. This took considerable planning and resources from the management team, but we knew we could not afford to lose sight of the big picture. That’s where our medium-term goal setting came in to play - addressing compliance issues.

Starting in December 2012, we implemented stricter compliance controls and updated training materials and documentation. By January 2013 we had put in place a more rigorous training and exam program requiring an 80 per cent pass rate. After an initial training program, all staff complete a 10 week in-depth training schedule and sit a refresher compliance exam every three months. Since then, that regime has undergone two amendments as we strive for continual improvement.

As part of our compliance commitment, in April 2013 ACM instigated frequent and regular meetings with the Credit & Investment Ombudsman (CIO) to ensure customer complaints are handled in a timely and efficient manner. Working with the CIO, rather than seeing compliance as something we have to do, really shifted our thinking.

In 2014 we continued with our medium-term goals of making sure we achieved our compliance targets, especially on the new OAIC privacy legislation and came up with innovative IT solutions requiring staff to internally register every customer contact. It’s an efficient, effective system that ensures ACM

Group works within the regulatory guidelines and offers our customers peace of mind.


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We analysed new ASIC guidelines and updated our training accordingly, and by the end of July, 2014 all existing and new staff had been up-skilled in these areas. In August, we set firmer controls for IDR and EDR resolutions and in October, we implemented a new compliance system and added 10 compliance staff to monitor calls and provide real time feedback to management. By mid-2015 our deep commitment to compliance led to the implementation of a proprietary software system that counts every contact made to customers and associated third parties.

At the end of 2014, we progressed from our medium-term goal of making sure we met the essential standards of our industry, to our long-term goal of going beyond compliance to true customer concurrence, harmony and increasing customer satisfaction. That required internal change and external assistance. Firstly, we implemented a new call process - at the end of each call with a customer the Relationship Manager is to ask “are you satisfied with the outcome of today’s call” or “is there anything else that I can help you with?”, ensuring ACM staff are ‘getting it right’ throughout every customer contact. Once that was in place, we sourced external training focusing on listening, respectful communication and recognising financially vulnerable customers which has further enforced our culture of ethical customer service.

The critical test for cultural change is whether the people who can be your toughest audience notice it. In May 2015 we supported and attended the National Financial Counsellors conference. The feedback we received was that “ACM is doing it right”, which is something everyone associated with the company, from our Relationship Managers to our blue-chip clients, can be proud of. In addition to the raw feedback (or ‘anecdata’), we can measure the cultural improvements our training investment has delivered, both in reducing complaints and enhanced staff retention (with annualised rates of 75 per cent).

If there is one thing to take away from the ACM experience it is that good can come from taking responsibility for wrongdoing. The events of 2012 caused ACM Group to scrutinise and reform its systems. Now we have fail-safe IT and compliance systems to complement ongoing team training, ensuring customers receive respectful and responsive service. We also recognise that excellent customer service relies on continual review and improvement - our enhanced online presence is the latest example of the incremental steps the is management team taking to this end. Change has been gradual, but had a transformative effect on the way we do business. ■

Trent Vieira is Director of Operations of ACM Group based in Sydney. He can be contacted by emailing [email protected]

Number of Internal Disputes andResolutions: July 2014 - June 2015

Number of External Disputes andResolutions: July 2014 - June 2015

Months: July 2014 - June 2015

Months: July 2014 - June 2015

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EDR-Credit Listing EDR-All Other EDR-Total

IDR-Enquiries IDR-Disputes IDR-Total

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Recently, an IMA member received a letter from a borrower allegedly in

arrears in relation to an account for which the field agent had received instructions from the financier to attend and discuss the arrears with the borrower. The text of the letter received is set out below:

“I refer to your most recent unsolicited correspondence - the card left (with the above reference number) at my parents’ residence. I am quite surprised as to why you are contacting me, who you are and what you are attempting to do. Your letter lists no details whatsoever as to why you are sending me correspondence? Firstly, I demand that you tell me immediately how you obtained my personal information that is private? I consider this a clear breach of privacy laws. Moreover, you have obtained my parents’ personal information (also private), which is a further breach, and then entered onto their private premises?!Secondly, I formally advise you that I have no contract whatsoever with your company. There is no obligation I have to you and I do not wish, nor consent, to deal with your company ever.Lastly, I do not consent to you contacting me by any means at any time and furthermore any member of my family. Should you send any unsolicited correspondence of any form to me, or harass me by phone, or the same of any of my family

members, I will immediately make a complaint to the relevant statutory bodies as well as with the Police. I will hold you liable for your actions.I bid you good day and I trust that you will handle yourself accordingly.”

The same agent was later instructed to serve court process upon the same borrower for the same financier for the very same matter. The member asked for my view on whether in light of the letter earlier received he could attend to serve the court document or not and if he did would he be subjecting himself to all manner of claims from the borrower?

My personal opinion given the circumstances, it was probably wiser for the agent to not attend to service as this would probably be a clear case of trespass. I based this view on the actual content of the letter sent to the agent wherein the borrower had expressly asserted: “There is no obligation I have to you and I do not wish, nor consent, to deal with your company ever” and further “I do not consent to you contacting me by any means at any time, and furthermore any member of my family...”

My suggestion was to return the process and instructions with a further copy of the borrower’s letter to the instructing client explaining in the interests of avoiding a likely escalation/provocation of a dispute with the borrower the member should not undertake the process serving assignment.

Such a course of action was likely to then cause the instructing financier to consider how to alternatively proceed with enforcement action against its borrower in default of the finance agreement. There were at least two options available to the financier in seeking to proceed with its enforcement action being:

1. Instruct another agent to attempt the service of the court process upon the borrower; or

2. Seek an Order for Substituted Service for the court process by means other than personal delivery such as service by post, service on the parents at their address or leaving the documents in a sealed envelope addressed to the borrower and marked ‘Private and Confidential’.

The reality is consumers are increasingly more informed and litigious about their rights. As mercantile agents, we MUST make sure we are aware of all privacy and trespass laws to not only avoid action or consequences against our own business but also for consequences which might adversely affect the interests of our clients.

Regards

Basil Faulkner

consumers are increasingly more

informed

FROM THE PRESIDENT

Basil Faulkner

IMA President Basil Faulkner looks at a dilemma recently encountered by a member but increasingly faced by many members.

ON notice


Now is the right time for members to offer their suggestions for sessions and speakers they would like to see considered as we build the Conference program - if you have any thoughts or ideas, please let me know.

Cheers

Alan Harries

Consultations underwayI have previously reported in the AGENT

on the NSW Parliament’s Upper House 2014 Inquiry into Debt Collection which made 22 recommendations for legislative and regulatory improvements for the NSW Government to consider.

Recently the IMA was asked to nominate a senior representative to join a Debt Recovery Working Group of stakeholders convened by the Department of Justice to consider a number of the recommendations and to report back to the Attorney General (see page 7). I’ve also been contacted by a Department of Fair Trading senior policy adviser in relation to two recommendations: introducing negative licensing and transferring commercial agent regulation from the Ministry for Police.

Great lossThose who heard him speak at

conferences or read his articles will be shocked and saddened by news of the sudden passing of Gerard Nelson (see Vale on page 5). I first met Gerard at the offices of Jim Parke in Melbourne about 12 years ago. He was from Newcastle and we soon discovered I knew his younger brother quite well. As we chatted there was realisation of many acquaintances and friends in common as well as a great love of rugby.

Following this chance meeting, Gerard became a willing regular contributor to the AGENT and a speaker at National Conferences where his dry wit and blunt but practical employment law advice amused and enthralled delegates - he will be missed.

Market changesA cursory look at the News section in

this AGENT illustrates our industry’s marketplace continues to change and evolve: the entry of the world’s largest

debt buyer to the Australian market; the likelihood one of Australia’s biggest financiers providing work to our industry is facing a takeover; and the renewal of a significant outsourcing contract to the industry in Western Australia.

These are just the things making headline news but additionally there are many changes and challenges impacting our industry which regularly come to my attention. I hear from members who struggle with how to adjust to changed work distributions, the changed and increasingly insistent expectations of clients not necessarily well in tune with the geographic realities of industry members providing services in large areas of our nation. I hear too from some members who fear the changes adversely impact their ability to remain viable as independent businesses and are struggling with staying open in a situation where their employees are earning more than they do as business owners!

As members go about pricing their work and chasing contract opportunities they need to remain alert to the complete picture of operating viable and sustainable businesses. For larger agencies this includes understanding their long term performance and viability is very much dependent upon the existence of a network of smaller agencies to whom instructions can be on-forwarded especially when the consumer is in an isolated location - for that group to survive the fees paid must be fair and sustainable.

ConferenceThe dates and venue for the 2016 IMA

National Conference have been set: the event will run from 11 to 13 May 2016 at the Henry Jones Art Hotel located in Hobart’s Constitution Dock precinct - the venue incorporates modern design and contemporary art in one of Tasmania’s most significant industrial heritage sites.

FROM THE CEO

DESKTOPIMA CEO Alan Harries updates members on some of the matters crossing his desktop.

Alan Harries

our industry’s marketplace continues to

change and evolve


NETWORK

IMA NATIONAL OFFICE17B Denney StreetBroadmeadow NSW 2292PO Box 233 Waratah NSW 2298Ph: (02) 4927 0477Fax: (02) 4927 [email protected] www.imal.com.au

NATIONAL BOARDNational President Basil FaulknerPh: (08) 9325 [email protected]

National VP Administration Daniel TaylorPh: (02) 8568 [email protected]

National VP Finance David CombrinkPh: (08) 9409 [email protected]

Immediate Past National President Alex CaruanaPh: (02) 8833 [email protected]

CEO Alan HarriesPh: (02) 4927 [email protected]

EXECUTIVE COUNCIL Comprises the National Board, President of each Division and Directors Emeritus.

EXECUTIVE

BUYING or SELLING?Have an opportunity and want to discreetly find and engage with interested members?Consider a broadcast email by the IMA with a masked reply email address - call 02 4927 0477 for details of this affordable and effective service.

Victoria DivisionVictorian President Michael NugentPh: 1300 228 [email protected]

Victorian Vice President/Secretary Derek ChallisPh: (03) 5277 [email protected]

WA DivisionWestern Australian President Phil BotsisPh: (08) 6296 [email protected]

Sector Sub-committees

Collections Chairperson Daniel TaylorPh: (02) 8568 [email protected]

Investigations Chairperson Peter HarkinPh: (07) 3862 [email protected]

Process Serving Chairperson Nick WrightPh: (07) 3868 [email protected]

Repossessions Chairperson Travis CarterPh: (07) 3868 [email protected]

NSW DivisionNSW President Frank FodorPh: (02) 9630 [email protected]

NT BranchNorthern Territory Liaison Grant JonssonPh: (08) 8927 [email protected]

Queensland DivisionQueensland President Nick WrightPh: (07) 3868 [email protected]

Queensland Secretary Peter HarkinPh: (07) 3862 [email protected]

SA Division South Australian President Andrew SmithPh: (08) 8244 [email protected]

South Australian Vice President/Secretary Liam O’CallaghanPh: 1300 364 [email protected]

Tasmania BranchTasmanian Liaison Daniel SteersPh: (03) 6228 [email protected]

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