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Comment by Disgruntled Current Employee

October 21, 2006 @ 8:50 pm

Having seen the previous management change to a “jobs for the boys” CEO who brought in his mates namely the Sales Director, who brought in more of his mates,the Marketing Director who brought in his own staff.

The truth is thy have alienated their customers with a very poor re-brand from sub-prime friendly company to a wannabe big lender. They are severely missing the point here. All other sub-prime brokers are BOOMING.

The sad thing is whose head rolls? The marketing director or any of his team? oh no! the hard working brokers and processors who have tried to bring as much business as possible from the scraps thrown to them.

And what about all those consultants brought in? they must cost a combined total of over £1500 per DAY! More jobs for the boys!!

They say familiarity breeds contempt, never more on show at director level at compass.

Come on shareholders get your acts together and sort them out, you tried to in 2005 and have failed! oh but then again I remember the man you brought in is also one of the boys!

Shame really was and could still be a great place to work….pity it will be bust by Easter 2007.

Comment by The Introducer

October 22, 2006 @ 8:45 am

I judge from your post your morale is low - perhaps there are other employees with an opposing view? 

Rather than saying it will go bust, I prefer to try and give a more balanced view.

I suppose the two main things that give me a cause for concern with Compass are, firstly that other companies seem to be reporting a secured loans boom and yet Compass are reporting a significant downturn and secondly the push into the IVA market. Whilst IVAs are very profitable, there has been a dramatic rise in the last year and it is only a matter of time before the regulators intervene. To have a product, which is probably going to have a short shelf life, as a key part of your Business Plan is questionable.

Comment by Disgruntled Current Employee

October 23, 2006 @ 11:23 am

When you say short shelf life what do you mean 3,5 7 years and what about SIVAs they are due to be launched in the next year and they also should see an increase. I think the regluators will step in to stop so many people getting in to trouble in the first place. IE more responsible lending, better checks on affordability etc. I have almonst been to IVA with a level of debt about 8 years ago. It was just too easy to get credit cards, loand etc. Not that I would want to stifle a market with over-regluation but unsecured lenders cannot complain when they dish out credit like toffees and complain when IVAs increase and they only get 25p in the pound dividends. They can’t have it both ways, but I also agree it should be more difficult to enter an IVA, over commitment or bad financial management should not be given a get out clause like an IVA. Those in genuine trouble through illness or redunancies should.

Comment by The Introducer

October 23, 2006 @ 11:51 am

Even though the government has recently reviewed the IVA market when it did its work on SIVAs, I think they will still take another look at the market. The problem is there were only 4,000 IVAs in 2002 and there expected to be 40,000 this year. Credit Suisse predict it will grow to 100,000 a year by the end of the decade.

With such a rapid growth and using it as a thermometer for the financial health of the nation, at some stage either the Regulators will voluntarily step in, or someone like the Consumer Credit Counselling service will issue a super complaint (like the CAB did with Payment Protection Insurance).

I agree IVAs are the effect and not the cause and perhaps the FSA, OFT and CC will see their work on PPI, Interest Only Mortgages, Insurance and general credit selling as a chance to attack the cause and, in tandem with their heavy workload, will leave the IVA market for now.

IVAs are a hot issue though - you only have to look at One Advice Group, who it is believed have delayed their stock market flotation indefinetly because of ill-feeling in the IVA world (which has primarily come from the Hight Street Banks)

Comment by Mark Ormiston

October 29, 2007 @ 10:07 pm

I commented on this last year and my prediction of going bust by Easter wasn’t far off the mark! Its a real shame a great firm gone down again.