For debt recovery companies such as Wescot Credit Services, the changing economic climate as well as changes in regulations regarding debt management is causing them to change some of the strategies they employ. There are several factors that have impacted the debt recovery industry, and it is forecasted that there are more changes yet to come. In order to keep abreast of these changes, debt management firms will have to change the way they operate. Debt recovery companies are responsible for reclaiming millions of pounds worth of debt each year in ways that work for both the client and the customer.
Some of the problems that debt management companies have to overcome include the fact that on average the weekly disposable income has decreased to £139, which is close to figures released in 2008 at the beginning of the credit crunch. This then puts pressure on debt recovery and the speed at which the customer can return the debt. For each case that takes longer to repay, that increases the cost for debt recovery agencies. There will also be tougher regulations imposed on debt recovery companies, as responsibilities for mistakes will be passed on to the Financial Conduct Authority (FCA). In addition to this, the way that people control their finances have changed dramatically in the past decade with the advent of new technology which means that debt recovery companies will have to adapt their strategies to keep up.
To respond to these changes in the industry, debt recovery companies like Wescot have adapted their business models slightly in order to give the best service to clients and sensitive but effective recovery results. One of the main aspects that these companies have to be aware of is the specific changes brought about by the FCA and to deliver on the new regulations. In order to do this they will have to work with the FCA and their clients, ensuring that all parties are aware of what the debt recovery companies can achieve.
In order for debt management companies to continue to meet customer expectations, they will also have to update their processes when it comes to data handling and management as well as providing further training to their staff. By achieving this, they will be able to adapt to the current new obstacles that face customers when they are struggling to repay.
Adapting to the fast-paced industry of credit collections, CCR-interactive has updated delegate streams for the 2013 conference. One delegate stream deals with commercial credit, collections best practice and the importance of information in decision making. The collections stream is one of the most popular, and this year delegates will learn about the experiences of consumer creditors across many different industry sectors.