COVID-19 has meant that millions of people are now experiencing financial insecurity for what may be the first time, meaning the potential for many more people to fall into debt is increasing.
Income and Expenditure assessments have always been a key part of the collections exercise but with COVID-19 they are now critical.
Firms need to start planning now for how they are going to adapt their Income & Expenditure assessments to respond to the volume and different types of customers who will be experiencing financial difficulty. This includes considering that the demand for debt advice and related services is likely to increase. The old model of calling clients up and discussing their cases using volunteered information or statistical averages will need to be rethought. The need for accuracy in your assessment of what consumers can afford to repay is now paramount, to ensure the fair treatment of customers, and reduce the risk of fraud in the collections process.
Watch this webinar where we’ll discuss the impact brought by COVID-19 and how you can respond effectively to the challenges in the collections process.