Direct Debit bureau issues cautious welcome to late payment proposals | Eazipay Direct Debit News
 

 

Direct Debit bureau, Eazipay, issues cautious welcome to the governments late payment proposals

December 3, 2014

Eazipay Ltd, one of the UKs largest Direct Debit processing companies has issued a cautious welcome to the announcement that the Department for Business, Innovation & Skills is introducing proposals to address the national scandal of late payments.

The government is proposing that larger companies together with listed companies will report on a quarterly basis, disclose information on payment practices, publish the information on their website and will face fines if they breach the requirements.

Luisa Grey, a director with Eazipay said: “We have been calling for concerted action from the government to tackle the scourge of late payments for the last several years but it has not come forward in any meaningful way to help protect companies from the vicious circle of late payments.

“We have also been vocal in our of criticism of the Prompt Payment Code which we see as a cynical opportunity for companies to publicly say they are prompt payers while unfairly keeping their suppliers waiting to be paid.

“Of course we welcome the fact that the government recognises the enormity of the late payment problem and the establishment of the Prompt Payment Advisory Board. 

Our concern is that nothing concrete will emerge at the end of the consultation process except well-intentioned words that fall short of the action and support companies need right now.

“As it stands, the Prompt Payment Code means very little and promises to ‘name and shame’ late paying companies have never materialised, so it is unsurprising that businesses are taking a jaundiced view of the government’s real commitment to actually getting to grips with this growing problem.”

The difficulty, believes Luisa, is that late payments are so endemic that they have developed into a late payment culture which will be difficult to change now that it has become so entrenched.

“Government has allowed this problem to grow and the consequences for businesses up and down the country are intolerable with perfectly sound businesses going to the wall,” says Luisa.

Eazipay has said that it will be formally making its views known by responding the Duty to Report Payment Policies and Practices consultation document published by the Department for Business Innovation and Skills.

NOTES TO EDITORS

 About Eazipay Ltd

  • Established in 2002 by local entrepreneurs Kathy and Ron Bradney, and their colleague, Luisa Grey, Eazipay Ltd is one of the UK’s largest Direct Debit processing companies.
  • Eazipay increased its turnover by 20% during 2013 and the company now provides regular Direct Debit services to over 1,600 SMEs and corporate organisations in a wide range of market sectors throughout the UK, Europe and beyond. 
  • In 2013 Eazipay recorded its best ever year for Direct Debit collections when over £235 million worth of Direct Debits were processed on behalf of its clients.
  • Eazipay was awarded ‘Affiliate’ status from Bacs, the governing body for Direct Debit processing in the UK payments industry. The company is now a member of an exclusive group of 55 other Bacs Affiliates, which includes representatives from some of the UK’s leading businesses, banks and building societies, as well as government organisations and banking technology providers.

For further press information, please contact:

Damion Clark at Real PR (Consultants) LLP. Tel: 01353 667934 or 07789 911314 Email:  damion@realpublicrelations.com

Eazipay Limited are authorised and regulated by the Financial Conduct Authority, number 615816 under the Payment Services Regulations 2009 for the provision of payment services. www.fca.org.uk
The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

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