TISA response to the Payment Strategy Forum Consultation
TISA, the investments and savings membership association, has responded to the UK’s Payment System Regulator (PSR) consultation on its Payment Strategy Forum calling for a change in the way banks operate direct debits. This also includes improving on speed and reducing the costs of all payment transactions.
The Payment Systems Regulator, which oversees payments in the UK, launched a consultation on 13 July to set out a long-term vision to meet the needs of consumers and businesses, and to explore how service payments can be improved. The Forum was created by the PSR in March 2015 with a specific focus on developing a strategy for the payments sector where the industry needs to work together.
Carol Knight, Chief Operating Officer at TISA said:
“We believe that the eventual solution needs to improve the speed and reduce the cost of all transactions for consumers while not compromising the security.
“TISA believes that the direct debit system needs to be updated to reflect the modern world and changing employment conditions such as flexible and part-time working. It is paramount to the consumer that we provide greater flexibility, more in line with modern lifestyles and income streams, as well as providing transparency and control to the consumer.
“It is very common today that you have people on zero-hours contracts who have no guarantee of income. From a consumer perspective it can be very unsettling if you know that on a given date, a certain amount of money will come out of your account whether you can afford it or not. There is a growing need to make direct debits more flexible in order to help low-paid or freelance workers.
“TISA believes giving consumers greater control over when money left their bank account, so that payments could be altered or moved at short notice is key. We are seeing the need to make the system more consumer friendly for all of its users. As a result, we need to make it more responsive and flexible to reflect modern day living.
“We look forward to the response from the consultation, and will continue to work with the industry to ensure that consumers are offered greater flexibility, accessibility and control over payment transactions.”
Ends…
For further information please contact:
Alistair Kellie – Telephone: 0207 680 6558 /Email: Alistair.Kellie@newgatecomms.com
Sara Neidle – Telephone: 020 7680 6543 / Email: Sara.Neidle@newgatecomms.com
Jessica Hodson Walker – Telephone: 020 7680 6538 / Email: Jessica.HodsonWalker@newgatecomms.com
Email: TISA@newgatecomms.com
Notes for Editors
TISA is a not-for-profit membership association operating within the financial services industry. The focus of our recommendations and actions is improved outcomes for consumers and UK plc with this approach leading to a stronger UK financial services industry.
TISA’s growing membership comprises over 150 firms involved in the supply and distribution of savings and investment products and services. These members represent many different sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for the public. Effective policy and regulation and the creation of efficient industry infrastructure continues to be the major focus for our members. TISA is unique in that it represents the entire financial services industry, incorporating cross-sector policy, industry and technical expertise. Whilst we maintain a solid partnership with government, the regulators and wider industry, we remain independent and develop neutral views and opinions. This impartiality is reflected in our ability to drive development projects which improve industry performance and consumer outcomes, putting us in the unique position of being able to constantly challenge the status quo to bring about material improvement.
Website: www.tisa.uk.com