High street banks start building debt recovery teams to help customers deal with defaults on mortgages and consumer credit
New Street Group (group of businesses comprising of BrightPool, Interim Partners and Wickland Westcott) comments on how high street banks are building new debt recovery teams to help their customers deal with COVID-19 related credit defaults was the lead story in The Daily Telegraph’s Money section yesterday.
You can read the Telegraph article here.
An inevitable consequence of the impact of COVID-19 and the lockdown is that consumers are struggling to pay mortgages, credit cards, car finance and other consumer debt on time. Already UK lenders have offered 1.9million mortgage holidays. That mammoth task will get even more complex once the deadline for applying for mortgage holidays ends on October 31.
What’s refreshing is the determination of the banking industry to do this properly - give customers the best advice they can and give them as fair a deal as they can.
To do that we’re working with retail banks to build debt collection and recovery teams of up to 250 people per team, to help them cope with the demands of not just the mortgage market but also credit cards and car finance.
The scale of car finance lending, for example, is a concern to lenders as they fear it will be less of a priority for households with limited funds, than their mortgage payment.
So far banks have done a great job in dealing with enquiries by temporarily redeploying staff from other departments such as HR to help cope with the workload on payment holidays and defaults. However, these employees are now having to return to their usual duties and banks are in need of experienced teams to meet rising demand.
What lenders will need is more individuals who have experience of advising and dealing with distressed borrowers. The process of ensuring that each customer get treated fairly requires patience and good interpersonal skills as well as sound product knowledge.
If you need help resourcing for debt collection and management, please get in touch by calling 07811 352360 or emailing firstname.lastname@example.org. We have pools of readily available contractors, who have already had their qualifications vetted and have undergone compliance checks to ensure they meet FCA and PRA requirements.