In line with the release of the FCA’s Thematic Review in Arrears Management in Unsecured Lending, at YnR we have carried out our own mini review on this important function.
What did we find?
Whilst most organisations have relevant policies and procedures in place and frontline staff fully trained on TCF and Vulnerable Customers. This is a vast improvement and a move in the right direction, however, for some organisations we have found in essence this has been translated to acceptance of information relayed by the customer. So may I say it? This is resulting in over forbearance and unfair outcomes for the customers.
Within these organisations, the majority of frontline staff that we have listened to are accepting what the customer is telling them with little validation, nor are they asking the right questions to formulate the customer’s current financial circumstances. We have seen customers providing income and expenditure information that shows that they are not in financial difficulty with outstanding priority bills and debts, but are just spending too much on socialising being placed on financial hardship plans which then impacts their credit file. And, customers who are not responsible for the household (living at home with parents) asked how many adults and dependents are within the household, when this information is not relevant to their financial circumstance.
Remember, the TEXAS model encourages staff to ask the right questions, not just accept what the customer is saying.
We’ve find that frontline staff are more concerned on their call audit results rather than the customer as most scorecards are based primarily around process rather than outcomes.
How can organisations offer the right arrears management solution to the customer if staff are not capturing the correct current financial circumstance and their call audit is process driven?
At YnR we have a proven track record of training and coaching staff to build their confidence to enable them to ask the right questions and validate, enabling them to offer the right solution to the customer and improve collections. We can also assist with developing a customer outcome centric call audit scorecard.
If you need help with these challenges….at YnR we have subject matter experts who have worked on Collections Floors and could assist you in improving your collection strategies. Contact us today.
YnR Recruit Limited. January 2017