Canadian consumer debt expected to rise 4 to record 28853 next year

TORONTO, Ontario — Canadians will ramp up their record levels of debt in 2014, says one of the country’s leading rating agencies.Credit-monitoring agency TransUnion predicts in its first such annual forecast that the average consumer’s total non-mortgage debt will hit an all-time high of $28,853 by the end of 2014.That would be about $1,100 more than the $27,743 of debt consumers are expected to have at the end of this year.TransUnion says car loans are expected to drive the increase in such debt, which also includes credit card debt, lines of credit, student loans and the like.On the plus side, the credit-monitoring agency says it expects loan delinquency rates to continue to decline in the coming year, falling to 1.66 per cent at the end of 2014 compared with 1.76 per cent forecast for the fourth quarter of this yearBoth figures are down from 1.93 per cent in 2012 and 2.87 per cent in 2009.“The average Canadian consumer’s total debt is expected to rise by four per cent in 2014, which would be more than $4,500 higher than what we had observed five years earlier in 2009,” Thomas Higgins, TransUnion’s vice-president of analytics and decision services, said in the report.Higgins noted that while the 2014 increase is much greater than the expected one per cent rise in 2013, it is in line with consumer debt growth of recent years.“In recent years, the increase in auto sales has helped propel the total debt number and we believe auto captive loans will once again be a driver of this increase in 2014,” he said.“Instalment loans also have played a major role and we don’t expect there to be a material change in this trend,” he added.While TransUnion expects delinquency levels to drop next year and remain significantly lower than just a few years ago, “there is a slight concern that delinquencies could rise once interest rates increase,” Higgins said.However, he added that at this time “we do not believe interest rates will rise enough to materially impact delinquency levels.” read more

ICMMs new guidance on local level concerns and Vedanta found in breach

first_imgICMM presents Human Rights in the Metals & Mining Industry: Handling and Resolving Local Level Concerns & Grievances, the second in a series of publications designed to help member companies deal with challenging issues in this area. The publication sets out good practice approaches to help companies design and/or enhance existing complaints procedures or mechanisms.  Focussing on this issue, which was highlighted in the recent publication, Human Rights in the Metals & Mining Industry: Overview, Management Approach and Issues, complements ICMM members’ work at the operational level to build strong, trusting relations with local communities around their operations.Meanwhile, a UK registered mining company failed to comply with OECD standards for operating overseas when it did not consult an indigenous group on the construction of a bauxite mine in India, a UK Government examination has found. UK-registered Vedanta Resources plc operates directly or through subsidiaries in India, Zambia and Australia with a focus on aluminium, copper, zinc, lead and iron mining. The company is listed on the FTSE 100.The Government’s examination found that Vedanta acted inconsistently with the OECD Guidelines for Multinational Enterprises by failing to put in place an adequate and timely consultation mechanism fully to engage the indigenous group Dongria Kondh about the construction of a bauxite mine in the Niyamgiri Hills, Orissa, India.Trade, Investment and Small Business Minister, Lord Davies, said: “The Government promotes responsible business practices and adherence to internationally recognised standards. Clearly, mining can have an impact on those living nearby so it is essential that UK registered companies maintain an open dialogue with local communities, including indigenous groups, affected by their activities and put adequate means of consultation in place”.A complaint under the Guidelines against Vedanta was made by Survival International on December 19, 2008, triggering the start of the complaint procedure by the UK National Contact Point (NCP) for the OECD Guidelines. The UK NCP’s Final Statement on the complaint made two recommendations:Vedanta should immediately and adequately engage with the Dongria Kondh, on the construction of the bauxite mine. And, Vedanta should include a human and indigenous rights impact assessment in its project management process, paying particular attention to the creation of an adequate consultation process, prior to the finalisation and execution of a project, with indigenous groups potentially affected by the company’s activities.So, the timing of the new ICMM publication is very appropriate as it aims to:Describe a set of ‘overarching design principles’ that provide basic, high-level guidance for companies developing complaints mechanismsOutline some basic criteria to help operations ‘assess the nature of and potential for complaints’ and so to develop a mechanism most appropriate to their situationPresent three possible types of mechanism, with incrementally greater levels of external engagementSet out various ways in which global headquarters of companies can develop ‘group-wide procedures’ to support best practice locally.http://www.icmm.com/document/691last_img read more