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President’s Report Well, what a difference couple of months makes. It seems like only yesterday that we had only just heard of this new virus that had been discovered in a far off Chinese city, and at that point it was only travel and tourism that were suffering – little did we know how quickly this would turn into a global pandemic, forcing restrictions and lockdowns, disrupting lives and businesses to an extent that has not been seen since the Second World War.

Whilst the lockdown and restrictions has forced us postpone our planned events, notably our Economic Update Breakfast update and the increasingly popular Insolvency Seminar, we hope that we will see restrictions lifted to a level that will allow us to still hold our WinC and YCP Events (YCP nominations are now open) later in the year, and I am hoping that these events will be bigger and better than before, even in the face of the challenges we are experiencing.

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On a lighter note, a copy of the 1993 March edition of ‘Credit Management in Western Australia’ landed on my desk recently, and made for some very interesting reading, not to mention the AICM alumni that held council positions then that are still involved in some form today – Steve Thomas (President), Steve Mitchinson (Australian Director), Kevin Allen (Councillor), Frank Vredenbregt

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(Councillor) and an honourable mention to the late Mike Murphy (Councillor). Whilst the hair styles and dress sense has come a long way, the issues facing credit managers then are just as relevant now – with perhaps the exception of a piece titled “100 years ago when debtors prisons were the go”!

Who knows where we will be when it comes time to pen my next report, however there is hope on the horizon as some of the restrictions are slowly being lifted and there is a lot of talk of what the world will be like post COVID-19, one thing is for certain is that credit professionals will remain very busy!

Stay safe, stay sensible and I look forward to seeing you all very soon. – Troy Mulder MICM CCE AICM WA Division President

COVID impacts in Consumer Credit We recently sat down with previous YCP State Finalist. member and Credit Team Leader at Alinta Energy, Tamera Parker MICM to get her insights on how the COVID-19 pandemic is impacting her Consumer Credit team, and how Alinta Energy is supporting their customers through these challenging times.

How is your team finding the changed working conditions? “Prior to this pandemic my Retail credit team had not been exposed to working from home, they swiftly adapted to this challenge by learning new ways of working with technology they hadn’t experienced before. It is fantastic to have their support and positive attitudes during a time where processes are constantly changing, and they are having to change their philosophy on collections.”

Do you think the pandemic will have a short- or long-term effect on the business? “In my opinion the pandemic is certainly going to have a long-term effect on the business, particularly from a credit perspective. With the unemployment rate on the incline, and many SME’s affected by the mandatory government closure, it will take some time before the economy returns to “normal”. On the flip side, it’s a great opportunity to think outside of the norm for credit professionals, and perhaps it will change how we look at credit management in the future.”

“At some point in the future, yes we will. When the government begins to relax lockdown requirements, many consumers and SME’s will have a backlog of debt which will require a more personalised approach to understand their situation and assess their needs.”

What measures have you (or the business) put in place to support and assist your customers through these challenging times? “Alinta Energy has been very forthcoming in assisting our customers with the fast implementation of a COVID care response package that was provided to all frontline and back office teams. Like other energy retailers, we have put a hold on disconnections, referrals to mercantile agents, default listings and debt sales. We have additionally increased payment extension timeframes that can be offered to customers and adjusted our criteria of our Hardship program. Our automated credit treatment cycle has also been adapted to ensure our customers do not feel overwhelmed with notifications during this trying time.”

Past challenges

The current uncertainty and unprecedented change forced upon us has given us pause to reflect upon the past challenges our country and also AICM members have faced. We looked into the (significant) archives we possess to see what credit professionals have thought in the past and stumbled upon this gem that was published by the WA Division in the 1980’s (a heady time for us here in the West).

Made us reflect on how times have changed and continue to change. However, without working together with our customers and clients to collect outstanding debts we’ll all face a much different future ...

100 Years Ago Debtor’s Prisons were the go

Once upon a time in the dim distant past, Debtors who did not pay were often brought to task. Brought before Old Brownie, a fearsome Judge indeed. Who rarely gave less than 15 years – before they would be freed. Debtor’s prison in those awesome days, a place of little hope, The food was sparse, the place was damp, in darkness they would grope. 15 years a long, long time for an unpaid half-a-crown, But that was normal years ago when brought before Judge Brown.

Today times have change, not always for the better, To avoid paying Creditors they sing a simple letter, A Declaration of Bankruptcy – no further need to pay, Thousands of dollars owed to Creditors borrowed along the way. The Trustee calls a meeting, the Credit Managers all attend. To see what can be done, to see what they can mend. Alas, no money in the bank account, no assets does he own, The Gucci shoes, the Rolls Royce car with mobile telephone, The cars, the boat, the properties, all in the spouses name, With Buckley’s chance of recovery, it is a crying shame! In tailored suit he states his case, showing not the slightest pain “It is not my fault, ‘cause I worked well, The bankers are to blame”.

Judges are weak, the laws unfair – not like in Brownies day, The simple truth, sad but true, we cannot make them pay. 100 years from now the roles have been reversed. The Debtor’s in the Witness Box and he is well rehearsed. “Your Honour, I am under oath and I would like to say, That this the Credit Manager demanded every day, That I make payment on a bill, a paltry sum you’ll see. He threatened to suspend my credit, he threatened with such glee. Your Honour, I now rest my case, on the action he has taken, With this now said, I will retire – for I am very shaken.”

The Judge aghast, upset for sure unable to conceive, A Credit Manager would do such things, unable to believe. the Credit Managers in the dock, he is not a happy sight Found guilty of chasing payments, awesome is his plight.

Of stern approach, the Judge donned silk and sentenced by decree, 15 years you will serve before you will go free. Creditor’s prisons in this high-tech age, a place of little hope, The food is cubes, the place is bright, you’re not allowed to smoke. 15 years, a long long time for seeking payment down, But this is normal years from now when brought before Judge Brown.

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