A supportive approach to debt recovery provides a range of benefits for any organisation collecting debts. Creditors that work in partnership with the debt advice sector tend to achieve fairer outcomes, better customer engagement and sustainable repayments. Conversely, poor debt recovery practices can have a detrimental impact, disrupting people’s financial circumstances which can lead to disengagement and damage to the creditor’s reputation.
Working with our stakeholders, we are producing a suite of resources focusing on specific creditor sectors, taking into consideration their unique challenges in collecting debts. So far this has seen the production of two toolkits – ‘Working Collaboratively with Debt Advice Agencies’ and ‘Supportive Council Tax Recovery’.
Moving forwards, we will be engaging with other creditor sectors to capture good practices and make recommendations for improving debt collection processes.