An outcomes-focused approach to collections and recoveries

 

Firms liaising with customers in arrears and default situations need to ensure that their policies and processes take the likely vulnerable circumstances of the customer situation into consideration. This needs to be balanced against the commercial need to collect outstanding debt. The regulator continues to take an active interest in how firms balance these requirements whilst demonstrating adherence to regulatory rules.

Lenders must also ensure their charges for customers who are in arrears are fair and not excessive. As well as this, firms should periodically review their forbearance procedures, and decisions should be made only after a review of a customer’s individual circumstances.

Huntswood reviews firms’ approach to collections and recoveries by benchmarking against customer, firm and regulatory expectations.

We consider the wider impact of this activity by considering not only policy and process, but also recruitment, training and competence, quality assurance MI and governance, giving a cultural and holistic opinion.

Our experts support clients by:

  • Assessing the current state of your approach against regulatory expectations and industry best practice
  • Producing a comprehensive report with suggested interventions
  • Managing any changes to policies and procedures to achieve a collections culture that is demonstrably focused on treating customers fairly, including improving the approach to monitoring, compliance and managing risk
  • Implementing expert training and development programmes to ensure staff are equipped to deal with customers in financial difficulties
  • Providing expert case handlers with specialist regulatory knowledge to supplement your own staff

Key Benefits

  • Recover debt more effectively and compliantly

  • Protect vulnerable customers and those in genuine financial difficulty from poor outcomes

 

Why Huntswood

Regulatory experts with a deep understanding of the priorities of the regulator, and its future direction of travel

Conduct partners to the ABI, prominent members of the FLA, and hosts of a number of cross-sector vulnerability events and peer discussion groups