Tuesday 4 December 2012

Meet Richard Gray - New In-House Counsel


ICredit Enforcement are please to introduce the highly esteemed barrister Richard Grey to the company. As the new In-House Counsel, his strong reputation and hard working ethics will provide all our clients with concise and reliable legal advice. 

Here is his profile:-

Richard Gray

Barrister-at-Law

Richard Gray was called to the Bar at the Middle Temple in November 1986. Commencing his Pupillage in 1987 at Chambers in Liverpool, his practice was mainly Crime and Common Law, pursuing actions against the police and personal injury matters in the field of industrial disease.

In 1991, Richard joined Chambers in Manchester where he largely enjoyed success as a Criminal Defence Barrister. It was in this field that his particular strength in robust cross-examination coupled with an ability to critically analyse issues, in particular those which required complex disclosure arguments in the area of public interest immunity, was recognised by a number of solicitors firms with whom he enjoyed long and successful relationships. 

Richard’s strong cross-examination skills along with a number of acquittals on behalf of his clients, has enabled him to move successfully to other contentious areas of law. At the end of the 1990s, Richard moved away from his criminal practice although, due to being held in such high regard, he is held on retainer with a high profile Criminal Solicitors in Manchester. Richard developed an interest in expanding other areas of practice such as employment and regulatory work and additionally began to study various areas of taxation and commercial law. These areas of practice have gradually expanded at the Bar and he has appeared for such firms as Mowlem Plc and Coca Cola in the Employment Tribunal.

Experience in Dubai and the UAE

In 2009, Richard was approached to assist an expat who was detained in Dubai due to a series of dishonoured cheques and he was asked to look into areas of negligence by his client's previous legal advisers. This meant that Richard had to visit the UAE a number of times to liaise with Emirate Lawyers and the Dubai authorities, in particular the Attorney General's office and the office of the Chief Prosecutor. He persuaded them that pursuing his client, who had been acquitted on one charge, was both duplicitous and an abuse of the process of the court and four similar charges based upon the same evidence should not be proceeded with.

Richard’s concise arguments have recently been used in the Court of Cassation by the office of His Excellency The Attorney General of Dubai. Richard has also sought to persuade the authorities in Dubai that numerous charges based upon a single course of conduct should result in both concurrent sentences and consideration of the principle of totality.

Negligence in the Emirate

Whilst negotiating contracts in the Emirate, Richard has had cause to extensively consider the law in relation to negligence to limited liability and its effect upon the company official. 
This research and the principle of ‘Service Out of the Jurisdiction’ of the courts
of England and Wales, has resulted in Richard recently lecturing in October 2012 to
the Solicitors Group in Manchester on precisely the same subject.

ICE

In May 2012, Richard was introduced to the Directors and Associates  of ICE to provide privilege legal advice to their clients which Richard enjoys as a practising barrister. This has resulted in a successful relationship between Richard and the company whereby the company clients, who’s legal issues are both complex and various, have sought advice from Richard and have largely been successful in the issues they pursue.

At present, ICE has asked Richard to act as ‘In-House Counsel’ presenting Richard with a variety of issues in relation to the field of debt recovery, bankruptcy and winding up petitions. Later this year, both he and the directors and associates plan to visit the Emirate of Dubai, where they hope to assist the various clients in the complex field of debt recovery and enforcement of international credit agreements.

Richard has strong ties with various agencies in the UAE and will be a considerable asset to the clients of ICE in the resolution of various legal disputes.

Hobbies:

In spite of his busy schedule, Richard has several hobbies to help him relax. He enjoys running, skiing and free fall parachuting as he is an ex member of the Parachute Regiment. In the quieter moments, he enjoys getting lost in his favourite book, which is Gorky Park by Martin Cruz Smith.


If you would like to contact Richard for legal advice or with any questions you may have please call ICE on 0118 3240 335 or email info@icreditenforcement.com.

Wednesday 24 October 2012

The Beginning of ICE PACC


Every business is created from a single idea and Gareth Thomas’s evolved from the growing need to find a way to recover owed monies from slow paying or non-paying clients. Due to recurring factors such as pre-pack administrations, lack of due diligence by creditors, disputes and absconding debtors, some businesses were struggling with their bad debt and Gareth felt that this problem needed to be addressed urgently.
Gareth’s first venture was setting up Financial Solutions South in 2007 which specialised in commercial debt recovery and, even though this business really took off, he wanted to develop a system which gave business owners access to the very best in credit control software without having to employ a debt management firm. By working side by side with CCS LTD, who had developed the collection software Colsys, the innovative International Credit Enforcement Pro-Active Credit Control, or ICE PACC, was born in 2009 and, soon after its launch, it won the backing of Institute of Credit Management (ICM).
ICE PACC is an online credit management tool which has revolutionised the way businesses are able to manage cash flow and minimise bad debt. It's a simple but powerful online tool which gives businesses, from sole traders to corporate businesses, the power to manage each stage of the credit control process, from assessing a client or supplier's risk profile to successfully recovering bad debts. It also offers free pre-legal debt recovery which includes professional written reminders, legal documentation and agreement plans along with door-step collections (adhering to strict codes of conduct) recorded on video, for transparency where necessary, to ensure that the integrity of all businesses are upheld whilst helping with the recovery of bad debt.
The success rate of ICE PACC has rocketed in the last 3 years with 90% of debts being collected before legal action was pursued. This excellent performance, along with a fantastic working relationship, has seen ICE PACC become global with businesses as far as Dubai integrating ICE PACC as part of their standard operating procedure for credit control.
If you would like more information on the ICE PACC software system, contact 0118 324 0335 or visit http://www.credit-control-software.com/

Thursday 9 August 2012

Your Debt Recovery Questions Answered

Firstly, we would like to thank you for all of your questions regarding credit management and debt. Your response has been overwhelming and so we will continue to post questions and answers for the next few weeks. If there are any questions that we have not answered on debt recovery or credit management then please don't hesitate to tweet, facebook or email us.

Q. What are the different stages of the debt recovery?

A. There are three stages of the debt recovery process which are pre-legal, legal and enforcement.

Q. What do each of these stages involve?

A. The first stage is pre-legal which takes 28 days to complete. If the creditor is owed money and the payment is overdue, a first letter is issued stating payment is required within the next 7 days. After those 7 days, if no payment has been received, a second letter is sent giving a further 7 days to make payment. After this 14 day period, if the debtor still has not made payment, a letter before action is issued giving the debtor 14 days to pay before legal action is pursued.

The second stage of this process is legal action. This is where a judgement is sort against the debtor through the courts. If it is successful and judgement is granted, then enforcement can occur. However, if it is disputed by the debtor, the case is passed to a legal team for appraisal and assistance in gaining the judgement.

The final stage is enforcement which occurs if judgement from the legal process is granted. This consists of a number of options such as enforcement through the courts via attachment of earnings or third party debt orders to name a few. The most favourable option is for the judgment to be transferred up to high court for enforcement by High Court Enforcement Officers.

Q. Why is your company different to all the others in regards to debt recovery?

A. By having our own sheriff and in house legal team, we can pride ourselves on being the only company who complete the pre-legal, legal and enforcement stages all under one roof. By offering this service, it allows the client feel confident and secure in the notion that from initial take on to enforcement, one company will be involved in the recovery of their debt.

If you have anymore questions or any experiences that you would like to share with us, contact us on any of the addresses below:-

Twitter: @icepacc
Facebook: http://facebook.com/ICreditEnforcement
Email: info@icreditenforcement.com

Saturday 21 July 2012

Your Credit Questions Answered

Over the past few months, we have had a number of enquiries from prospective clients about credit and how to manage it. Below are just a few of the questions we have had and our answers to them:-

Q. What is credit?

A. Credit comes from the latin word 'credere' which means to trust. It is the ability to obtain goods or services before payment and trusting that payment will be given in the future which allows the person granting the credit to sell more goods.

Q. What is the role of credit in the financial system?

A. There are several different types of credit used within the economy such as trade credit, export credit and consumer credit:

Trade credit is the largest use of credit for a majority of businesses. This is where the customer purchases goods or services from the supplier on account to pay them back at a later date. When the goods are delivered, a set amount of time is given for payment such as 30,60 or 90 days. Without trade credit, the supplier would have a limited access to market their products which would lead to a lack of commercial viability.

Export credit allows UK businesses to reach similar markets overseas. Without this form of credit, overseas businesses would choose local suppliers over international ones which will cause a lack of demand for goods from the UK.

Consumer credit is mainly used to encourage a long term demand for houses, cars, consumer goods and services to the public. Without this, there would be a drastic reduction in demand for these items which would affect the house market and several industries which would result in job losses.

Q. What is meant by bad debt?

A. Bad debt is the amount written off by the business as a loss and is deemed as an expense to the company. This occurs when the business has exhausted all avenues of collection and has been unable to recover the debt.

Q. Is there a difference between credit control and credit management?

A. No, they are one and the same. Credit control and credit management is when companies increase their sales revenue by extending credit to customers who are deemed a good credit risk and denying credit to consumers who aren't a good credit risk as this reduces the company's exposure to bad debt. 

These are just a few questions that were asked. If you would like any of your credit questions answered just comment on this page, email us at info@icreditenforcement.com, tweet us at @ICEPACC or facebook us. We are happy to help!

Tuesday 10 July 2012

England's Law Courts Rule

England’s law courts are being inundated with disputes involving the super-rich from across the globe. The high-profile battle of billionaires Boris Berezovsky and Roman Abramovich is just one of dozens of overseas cases filling the High Court, which appear to have little to do with this country. Nine out of 10 commercial cases handled by London law firms now have an international link, according to government statistics. Ministers say London’s concentration of “legal and financial” expertise is unrivalled, while the Ministry of Justice said the Rolls Building, the new High Court extension, is the largest “specialist centre” in the world for the resolution of commercial disputes. Home-based lawyers believe it is all down to the quality of English justice in comparison with foreign legal systems. David Allen, head of litigation in London for the Mayer Brown law firm, said the High Court attracts such cases because English justice is the envy of the world. “We have extremely high calibre judges here so commercial parties can rely on a rational decision. They are not corruptible, which is more than can be said about the jurisdictions from which some of these parties hail,” he said. “The English courts are quick and efficient and deliver judgments which are rational, fair and swiftly delivered.” The judgment in the Berezovsky v Abramovich case — in which the rivals are haggling over shares in a Russian company — is expected to be handed down by Mrs Justice Gloster before the Easter break. It will be followed next month, also in the Commercial Court division of the High Court, by another showdown between eastern European oligarchs Michael Cherney and Oleg Deripaska. This also is a dispute over shares. The biggest winners from the surge in overseas cases are the barristers and law firms. But courtroom translators and interpreters are also benefiting. An interpreter providing simultaneous translation of proceedings can charge £300 a day. An oligarch would often use their own translator, who would be on a far greater salary. The Ministry of Justice has an annual budget of £60 million for interpreter services for courts, including criminal courts. Oligarchs at war in the capital Boris Berezovsky v Roman Abramovich Judgment awaited in claim for £3.2 billion damages. Berezovsky alleges that his rival intimidated him into selling shares in oil company Sibneft for a fraction of their true worth. Abramovich says there was no formal agreement and denies that he threatened Berezovsky. Michael Cherney v Oleg Deripaska Trial due to start in May over a £2.3 billion claim; Cherney alleges an unpaid debt and is demanding the equivalent of one fifth of Deripaska’s company, Rusal. Deripaska rejects the claim, making counter allegations against his opponent. JSC BTA bank v Mukhtar Ablyazov Litigation running for two years between the Kazakhstan state-owned bank and its former boss. It claims he stole more than $5 billion. Ablyazov was sentenced to prison for contempt of court last month. He is believed to have fled to France. Commentary: Roubles and dollars roll in Never have the corridors of the High Court echoed so much to Russian voices. Court benches are piled high with files packed with documents in Cyrillic script pinned to English translations. In the Cold War days Russians were depicted as hatchet-faced men in greatcoats with snow on their boots. Now they come in Savile Row suits and polished leather shoes and with a trophy wife on their arm. Highly-paid lawyers are loving it but is the expansion in overseas cases with little apparent link to Britain in danger of turning the commercial courts into a version of libel tourism? Equally, are our courts being filled with these cases at the expense of justice for English cases? The answer to both questions is probably no. English Contract law is recognised as being fair and reasonable and not weighted in favour of the litigant. And its cases are coming to court far faster now that judges have been put in no doubt that they are responsible for time-keeping. But the efficiencies brought in at the High Court — where cases mostly operate without a jury — are attracting untold millions in euros, dollars and roubles. At a time of recession that is not to be dismissed lightly.

Debt Recovery Letter for £1

Summer Offer: Need to send a 7 day final reminder? Then visit http://www.icreditenforcement.com/debt-collection-letter/ It will only cost you £1 in advance, just £1!!!!!!!!!

Monday 9 July 2012

Free Credit Control Software

Interested in free credit control software? Contact us directly on 01183 240 335 and quote promo code OLYMPICS. Alternatively email info@icepacc.com and submit your contact details along with the promo code OLYMPICS

7 Day Letter (Final Demand) for only £1

I Credit Enforcement are offering a online service for prospective clients to download a 7 day letter citing a final demand for payment at a cost of only £1 Interested go to the following link;

Monday 2 July 2012

Blow for George Osborne as recession is deeper than first feared

The double-dip recession is deeper than originally feared as revised figures today showed a sharper decline in the economy in the final quarter of last year. Gross domestic product (GDP) shrank by 0.4% between October and December, compared with a previous estimate of 0.3%, while the economy contracted by an unchanged 0.3% in the first quarter of this year, the Office for National Statistics (ONS) said. The figures mean the current recession - defined as two or more quarters of declining GDP in a row - is more severe than first thought. The impact of the weak economy was underlined by household spending figures, which showed expenditure falling by 0.1% compared with a previous estimate of 0.1% growth. The downward revision will heap more pressure on the Government and fuel criticism that Chancellor George Osborne's austerity measures are choking off the recovery. And in a further sign that the Chancellor's deficit-busting plans are struggling, Government spending grew at its fastest rate in nearly seven years between January and March, the ONS said. The 1.9% surge in Government expenditure was driven by higher spending on public administration, health and defence. Meanwhile, the decline in household expenditure in the first quarter was driven by a fall in spending on financial services and social protection. The decreases were partially offset by spending on food and drink and recreation and culture. The construction sector declined by a larger than previously estimated 4.9%, its worst performance since the first quarter of 2009. Industrial production sector output, which includes manufacturing, was also revised downwards to a fall of 0.5% from a 0.4% decline. Despite the overall decline in GDP, growth in the powerhouse service sector, which makes up 75% of the economy, was revised upwards from 0.1% to 0.2% in the first quarter. Economists and business leaders have warned that a technical recession will hit confidence and could cause businesses to rein in spending at a time when they are being encouraged to invest to stimulate growth. But the current downturn is expected to be nothing like as severe as the previous recession of 2008/09, which spanned more than a year. Vicky Redwood, chief UK economist at Capital Economics, said the economy is likely to remain in recession in the second quarter, shrinking 0.5% across the whole of 2012. She said: "Given the negative impact of June's extra bank holiday, GDP is likely to have contracted again in the second quarter. "Indeed, there are still numerous factors likely to constrain the recovery going forward, not least tight credit conditions." Courtesy of London Evening Standard

Friday 29 June 2012

Late payments left UK manufacturing firms £10.3bn out of pocket in 2011

Late payments left UK manufacturing firms £10.3bn out of pocket in 2011 according to direct debit organisation Bacs. The 2011 sum owing to manufacturers represents a significant rise on 2010 when £8.9bn was recorded as outstanding due to late payment. On average Bacs calculates that across manufacturers in expectation of late payments around £43,000 is outstanding for each company. In 2010 this figure was £38,00. According to a sector survey by Bacs, more than half of the UK’s manufacturing base experience late payments and 15% admit to being “very worried” about the consequences. An average of 29 days, in addition to the commonly expected 30 day payment period, are commonly added to payment periods according to Bacs. This leaves many firms waiting for two months before receiving payment for goods and services. Bacs says that the most frequent excuse businesses in the manufacturing sector give for late payment say they hear is that the hold-up is due to internal systems – 54% of those awaiting payment are told their invoice is waiting for authorisation. According to global trading organization GXS e-invoicing could solve many late payment woes. Nigel Taylor, head of e-invoicing at GXS explains: “Electronic invoicing is a key initiative to ensure invoices are paid on time. Automating the process allows for transparency and simplification, and the financial rewards of e-invoicing help to reduce processing costs from Eu17.60 to Eu6.70 – a 62% saving per invoice processed.” Mr Taylor continued: “Manufacturing companies may have work to do to remove a reputation of poor payers, in the UK at least. However, there is significant interest in the opportunity of electronic invoicing within industry groups like Odette and EDIFICE, which demonstrates that manufacturers are beginning to embrace the benefits of e-invoicing.” Mike Hutchinson, head of marketing at Bacs, says the issue of late payments is damaging to manufacturing firms which are relying on good cash flow to keep going through the fragile post-recession recovery period. “The problem of late payment is clearly getting worse for SMEs in the manufacturing sector,” he says. “We urge SMEs working in the manufacturing sector to look at what payments can be automated to help them assert more control over their cash flow, and hopefully alleviate some of that stress on the business and its owner,” Mr Hutchinson concluded. Published : 23 Feb 2012 9:36 am by Jane Gray Care of The Manufacturer

Tuesday 26 June 2012

Mervyn: interest rates could go to 0% if crisis worsen

Bank of England Governor Sir Mervyn King has raised the prospect that the UK’s record-low 0.5 per cent interest rates could be cut yet further to support the ailing economy. “There is nothing in principle against cutting bank rate further if that turns out to be necessary” King told the Commons Treasury Committee. Such a move would cause further pain for savers and pensioners who are already being buffeted by low rates. The Governor also said he was “pessimistic” about the outlook for the eurozone. His economic warning came as official figures showed the Government’s deficit reduction strategy is being knocked badly off course by the double-dip recession. According to the Office for National Statistics, public sector net borrowing, excluding the costs of bailing out the banks, was £17.9bn in May, £3.9bn more than in the same month last year. The rise in borrowing was driven by a 7.3% slump in income tax receipts on the year, reflecting a rapidly weakening economy, and a 7.9% rise in government spending. The sharp deterioration came as an unpleasant surprise to City analysts who had expected public borrowing to fall to £14.8bn. Chancellor George Osborne has staked his political reputation on making deep cuts to Britain’s deficit by the end of the Parliament and has fiercely resisted calls for a “Plan B”, slowing the pace of cuts to support growth. But the Government’s target of reducing the total deficit to £92bn in the 2012-13 year is now in growing jeopardy. “Only two months into the fiscal year, it is evident that Mr Osborne is facing a major battle to meet his fiscal targets for 2012-13 and is in grave danger of losing it,” said Howard Archer of IHS Global Insight. Olann Kerrison, of foreign exchange specialists Moneycorp said: “Plan A, it would appear, is kaput. The spike in public sector borrowing is a body blow to the Chancellor and the Coalition’s handling of the economy.” City forecasters have already begun to raise their estimates of net borrowing over the present financial year. In a further blow for the Chancellor’s deficit reduction plan, the ONS revised its estimate of total public sector net borrowing in the 2011-12 financial year up from £124.4bn to £127.6bn. The ONS figures showed that Britain’s total public sector net debt rose to £1.013 trillion, equivalent to 65% of GDP. On Thursday the ONS is due to release its third estimate of GDP in the first quarter of the year and is expected to confirm that output fell by 0.3% over the three months, pushing Britain into its first double dip recession since the 1970s. Courtesy of London Evening Standard

Thursday 17 May 2012

UPDATE: Greece exit could cost $1 TRILLION - Cameron warns it's make or break for euro

PM says UK not immune if euro was to collapse
17 May 2012
David Cameron said today there would be no u-turn on Britain's austerity measures as the economic storm in Europe continued. In a major speech on Britain's economy, the Prime Minister issued a call for action from eurozone states and institutions to support weaker economies like Greece or see the single European currency break up. The Prime Minister said he would do "whatever it takes to keep Britain safe from the storm", but made clear that the UK could not be immune from the consequences of a collapse of the euro. He insisted he would not ditch the coalition Government's deficit-reduction strategy in the face of demands from Labour - echoed by new French president Francois Hollande - for a shift in focus from austerity to growth. Britain should be "resolute" as it faces the potential storms from the eurozone, but also "confident" that it can get through to a brighter future if it stands firm and resists the "dangerous voices calling on us to retreat", he said. In his starkest warning yet of the dangers created by the debt crisis in Greece, the Prime Minister used a high-profile speech on the economy to say that Britain is going through "perilous economic times". Citing Bank of England governor Sir Mervyn King, who yesterday warned that the eurozone seemed to be "tearing itself apart", Mr Cameron told an audience of business leaders in Manchester: "Turn on the TV news and you see the return of a crisis that never really went away. Greece on the brink; the survival of the euro in question. "Faced with this, I have a clear task: to keep Britain safe. Not to take the easy course, but the right course. Not to dodge responsibility for dealing with a debt crisis, but to lead our country through this to better times. "My message today is that it can be done. We are well on the way in this journey." In a message directed at Germany - which yesterday registered strong growth while other eurozone countries saw their economies shrink - Mr Cameron said the "remorseless logic" of monetary union meant that successful economies must be prepared to do more to shore up weaker states on the periphery. While high-deficit countries like Greece need to take steps to get their budgets in order, "it is becoming increasingly clear that they are less likely to be able to sustain that necessary adjustment economically or politically unless the core of the eurozone, including through the European Central Bank, does more to support demand and share the burden of adjustment", he said. The eurozone needs to put in place long-term governance arrangements - such as eurobonds - which will deliver collective support and put an end to speculation about the future of the single currency. And Europe needs to implement structural reforms to address its overall low productivity and lack of economic dynamism, he said. "The eurozone is at a crossroads," said Mr Cameron. "It either has to make-up or it is looking at a potential break-up. "Either Europe has a committed, stable, successful eurozone with an effective firewall, well capitalised and regulated banks, a system of fiscal burden sharing, and supportive monetary policy across the eurozone, or we are in uncharted territory which carries huge risks for everybody. "As I have consistently said, it is in Britain's interest for the eurozone to sort out its problems. "But be in no doubt: whichever path is chosen, I am prepared to do whatever is necessary to protect this country and secure our economy and financial system." Despite the market turmoil across Europe sparked by the failure to agree a new government in Greece, Mr Cameron insisted there was reason for optimism that the UK is on the path of recovery. He hailed today's announcement of a £125 million investment by General Motors in its Vauxhall plant in Ellesmere Port, which he said was part of a wider revival in the British car industry which had seen the balance of trade in cars turn positive for the first time since 1976. "Despite headwinds from the eurozone, we are on track," said Mr Cameron. "It is a long-term project. It is painstaking work. But the tough decisions we have taken on deficit reduction really are beginning to yield real results. And there can be no deviation from this." He dismissed Labour's call for a relaxation in the Government's austerity programme in order to stimulate growth as "a cop-out", which would drive up interest rates and put recovery at risk. "Deficit reduction and growth are not alternatives. Delivering the first is vital in securing the second," he said. And he insisted: "We are moving in the right direction - not rushing the task, but judging it carefully. And that is why we must resist dangerous voices calling on us to retreat. "Yes, we are doing everything we can to return this country to strong, stable economic growth. But no, we will not do that by returning to the something-for-nothing economics that got us into this mess. "We cannot blow the budget on more spending and more debt. It would squander all the progress we've made in these last two, tough years. "It would mean tough decisions lasting even longer. It would risk our future. It's not an alternative policy, it's a cop-out." Britain's "responsible fiscal policy" of cutting spending and increasing taxes allowed the Bank of England to pursue an active monetary policy to support the wider economy, said Mr Cameron. And he said the Government was also pursuing a "radical programme of micro-economic reform" to boost competitiveness, including low corporate taxes, loan guarantees, streamlined planning rules, enterprise zones, labour market reforms and support for apprenticeships, as well as long-term action to invest in infrastructure, reform welfare and improve schools. "As we get through crisis, I believe we can look ahead with confidence," said the Prime Minister. "I cannot predict how this crisis will end for others. And I cannot pretend that Britain will be immune from the consequences, either. But this I can promise: that we know what needs to be done and we are doing it. "Get the deficit under control, get the foundations for recovery in place, defend the long-term interests of our country and hold our course. "As Prime Minister, I will do whatever it takes to keep Britain safe from the storm." Courtesy of London Evening Standard

Monday 27 February 2012

'Climate of uncertainty' stops firms investing

Businesses are still unwilling to bet on recovery after a worrying plunge in investment spending during the final quarter of last year, official figures showed today.

The Office for National Statistics' initial estimates of a 0.2% slide for the wider economy during the period were left unchanged but experts blamed debt turmoil in Europe for the 5.6% fall in business spending to £28.7 billion over the quarter.

Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, said: "The climate of uncertainty has caused firms to sit on their cash and, even after this week's deal for Greece, it's difficult to envisage this situation changing significantly in the short-term."

There were some positives, however, as desperate price-cutting by retailers to open shoppers' wallets during the autumn helped household spending rise 0.5% - the first growth since early 2010. Rising exports combined with weakening imports - attributed to slower manufacturing growth in the second half of last year by the ONS - also saw a positive trade contribution adding 0.6 percentage points to growth. Despite gloom over the plunge in business spending, firms built up stockpiles at a far slower rate than in the previous quarter, dragging on overall growth. This is welcome because it raises the chances of avoiding a double-dip with higher production in the current quarter.

Samuel Tombs, UK economist at Capital Economics, warned that the difficult economic backdrop remained: "Households are unlikely to be able to keep increasing their spending as unemployment rises, credit constraints tighten and inflation continues to erode their real spending power."

Courtesy of Russell Lynch / 24th Feb 2012 / London Evening Standard

OFT launches probe into payday-loans industry

The payday-loans industry - which makes short-term loans to those unable to get credit from banks - is being investigated by the Office of Fair Trading.

It will examine 50 major payday lenders and accusations that these high-cost, short-term lenders are irresponsible, handing out loans without checking whether borrowers can afford to repay them.

It will also look into evidence that suggests payday loan firms target the vulnerable, such as the unemployed or those on benefits.

Finally it will focus on the practice of rolling over loans, so that those who don't repay on time quickly end up with unaffordable rising debt.

David Fisher, OFT director of consumer credit, said: "We are concerned that some payday lenders are taking advantage of people in financial difficulty."

Joanna Elson, chief executive of debt charity the Money Advice Trust, said: "Payday lenders are aggressive in how they collect debts, often refusing to listen to proposed repayment plans and demanding full and final settlements that represent huge profits for the payday lender based on the money originally given out."

Courtesy of:Simon Reid / 24th Feb 2012 / London Evening Standard