Providing financial information to CCTS and paying CCTS fees

In order to offer free services to consumers, the CCTS is funded on a cost-recovery basis by the PSPs.  The CCTS funding model distributes the financial weight of its operations among PSPs based on a formula that includes the amount of their retail forborne revenues and the number of complaints received from their customers.  In order to apply this formula, PSPs are required to annually disclose their retail revenues to the CCTS. When PSPs fail to provide financial information or fail to pay their bills to the CCTS, it adds costs, which must be borne by all the other PSPs, and needlessly consumes CCTS resources.

To focus efforts on complaint-handling activities and ensure compliance with financial obligations, the CCTS monitors whether PSPs have complied with 1) disclosure of financial information, and 2) payment of CCTS fees.

Every year, to determine the PSPs’ retail forborne revenues, PSPs are required to provide certified financial information.

In 2022, 66 out of 292 service providers did not comply with the requirement to provide us with financial information.

See Appendix E for the full list of non-compliant PSPs.

It is a particularly challenging annual endeavor to obtain the financial information from all PSPs, especially from smaller service providers.  Nevertheless, a significant majority of PSPs have provided this information to us each year. Between 2018 and 2022, PSPs’ rate of response is 75%.

The CCTS bills PSPs on a quarterly basis, and PSPs are required to pay their fees promptly. We remind PSPs of their payment obligations when they are past due and identify how to come into compliance with their participation requirement. As of December 31, 2022, 30 service providers owed fees that qualify for collection activity, as listed in Appendix F. Since the CCTS is a not-for-profit which recovers its costs from all PSPs, non-payment of fees by some providers means that their non-payment needs to be unfairly shouldered by all other PSPs.