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HMRC appoints panel manager 7 February 2013

TDX Group has won a contract with HM Revenue and Customs (HMRC) to act as a debt broker and panel manager for its outsourced consumer debt collection work.

The intermediary and analytics specialist has been appointed for a trial period of six months, starting this month, to act as an intermediary between HMRC and its panel of 10 debt collection agencies (DCAs).

The contract is worth between £1m and £3m in fees and requires TDX Group to reduce the cost of debt collection through managing and controlling the placement of debts with various agencies.

The appointment could potentially cause friction for the DCA panel, as part of the trial’s success will be judged on TDX Group’s ability to reduce commission charges.

TDX is expected to improve HMRC’s recovery rates through data and analytics and provide full management of the DCAs on the panel, including performance management and invoice checking.

To this end, TDX Group will be passed debt data of around £150-£200m to be analysed, segmented and sent to the DCAs for collection. The company issued only a brief statement on winning the contract.

Mark Hover, director, public sector, at TDX said: “TDX Group can confirm it has been successful in the HMRC debt broker trial tender.”

In the original tender document released in November 2012, HMRC said the successful firm would be evaluated on its ability to reduce HMRC’s internal costs while driving up recovery rates.

The trial concludes in August and the results are likely to be used to inform the approach other government departments take to outsourced debt recovery because at the time HMRC put the panel in place in 2011, it created a framework which can be used by other departments and executive agencies.

The agencies used by HMRC to recover debt are Apex Credit Management, Direct Legal & Collections, drydensfairfax solicitors, iQor, Rossendales, CCS Collect, CCSG, Advantis, Fredrickson International, and Bluestone Credit Management.

By Alex Cardno



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